Reforming developer contributions – proposed Government measures

It is widely recognised that the current system of developer contributions (section 106 obligations and Community Infrastructure Levy) is too complex and uncertain. In May 2018, HUDU responded on behalf of London NHS Clinical Commissioning Groups to the Government’s public consultation on reforms to developer contributions. The Government has responded to the consultation and has proposed measures which reflect some, but not all, of the recommendations of an earlier independent CIL Review (A New Approach to Developer Contributions) which was published in February 2017.

A number of measures will require new guidance and amendments to the Community Infrastructure Levy Regulations 2010, and the Government will consult on draft amended regulations in ‘due course’.

HUDU has prepared a briefing note which summarises the key measures and comments on the Government’s response to the public consultation and the need for further reforms as advocated by the CIL Review. The briefing note can be viewed here.

There is a tension between removing planning restrictions to increase the supply of homes and ensuring that the impact of development on infrastructure is adequately addressed. Permitted development rights, such as allowing offices to be converted into residential use without the need for planning permission can also lead to poor quality homes, built in the wrong places. The Town and Country Planning Association has recently launched a campaign ‘Room to Breathe’ urging the government to reconsider permitted development rights.