The Government has now published its response to the consultation on proposed further regulatory reforms to CIL undertaken earlier this year.
Amongst the key changes proposed are:
- new payment in kind provisions, so that, where appropriate and acceptable to the charging authority, “the levy liability should be able to be paid (in whole or in part) through the provision of both land and/or on-site or off-site infrastructure.” (The current regulations apply just to land.)
- the deadline for introducing CIL is to be pushed back to April 2015
The added clarity and flexibility the proposed new payment in kind provisions will benefit the NHS where, for example, there is a clear need for a new health facility to be incorporated within a development or as part of a wider area development programme. Such provision often forms a part of current S106 negotiations.
Within London the proposed deferral by a year of the date by which CIL needs to be in place before much tighter restrictions on the use of S106 planning obligations to fund community infrastructure take effect is only likely to impact a handful of areas as most London Boroughs are well advanced in their preparations to introduce CIL.
The Government is proposing to make the necessary changes to regulations before the end of the year, to come into effect – subject to the Parliamentary process – by the end of January 2014.
For the full response, click here.
To download the consultation document click here.