Community Infrastructure Levy ( CIL)
All Local Authorities have been encouraged to formulate a levy payable by developers on new developments over a certain size. Bromley have formulated this levy. There was a preliminary consultation in 2018 and further consultation at the end of 2020. A plan was agreed which then had to be approved by an “ examiner” Mr Keith Holland of Intelligent Plans and Examinations (IPE) Ltd. Mr Holland provided a report on the 17th Feb 2021 which confirmed that Bromley’s proposed levy was appropriate. When arriving at this decision consideration has to be given to the Local and London Plan to ensure the levy imposed would not be a disincentive to developers Consideration was given as to whether developments in town centres should have the same levy imposed as out of town developments. It was agreed that the levy imposed on in town developments should be the same as the levy imposed on out of town centre developments as the figure was considered reasonable in both instances. The levy came into effect on the 15.06.21.
GLA Levy
The GLA levy for Bromley is £60 per square metre for residential developments. Initially this levy was to fund Crossrail.
Bromley Levy
The Bromley levy is set at £100 per square metre. This includes residential developments excluding residential developments which delivers additional care and support services and supermarket/foodstore over 280sqm. This means that the Areli development is subject to CIL in full.
There are some exceptions where developers may not need to pay the full levy which includes when providing social housing and some very specific types of affordable housing.
Questions and Answers
When is the amount of CIL funding payable agreed upon and when does it become payable?
At the point of the planning application being submitted calculations are made as to the amount of CIL payable on the development. CIL funding becomes payable 60 days after the development commences. Payment is only made where full planning permission has been agreed. Outline planning application does not attract the levy until full planning permission is granted and the development commences.
What can CIL be spent on?
By law, CIL money must be spent on the provision, improvement, replacement, operation, or maintenance of infrastructure needed to support the development. Infrastructure includes schools and educational facilities, medical facilities, sporting and recreational facilities and open spaces amongst other things.
Who decides where the levy is spent and how it is spent?
Bromley stated:
The Council is also encouraged by Government policy to ensure a proportion of CIL is spent in the ‘neighbourhood’ where the CIL amounts have been collected. Regulation 59A sets out a set proportion to passed on to parish councils, however there is no set proportion for boroughs without parishes; furthermore, there is no geographical definition of what constitutes a ‘neighbourhood’. Councils are however encouraged to adopt an approach similar to that set out in Regulation 59A, that being 15% on income received, rising to 25% where there is a neighbourhood plan in place. The ‘neighbourhood proportion’ would be held by the borough and only spent where the Council deems appropriate; however, there is an expectation of meaningful engagement with those who reside in the given ‘neighbourhood’. At present officers consider that setting ‘neighbourhood’ at ward level at the rate set out above to be the best approach and will develop a process for undertaking engagement with residents. Any process adopted for spending CIL can reviewed at a future date.
BROMLEY BOROUGH COMMUNITY INFRASTRUCTURE LEVY (CIL) – APPROVAL OF CIL CHARGING SCHEDULE
In summary at least 15% of the money levied should be spent in the Orpington Ward and local residents should be “engaged” as to how the money is spent.
London Borough of Bromley are required to provide an Annual Infrastructure Funding Statement. There has recently been a lot of development in and around the High Street so it would be interesting to know how much CIL has been attached to these developments.
Why is this information important for The Walnuts Development?
As and when Areli submit their new planning application, it is important that we know the amount of the levy that has been imposed on the developer and that we liaise with Bromley as to how, where and when this money will be spent. This is a large development and although Bromley talk about developing a process for undertaking engagement with residents it is not known if there is a formal mechanism for this yet. There is also a suggestion that consultation will be at ward level but given parts of the Knoll and Petts Wood Ward are closer to the development and therefore more dependent on the local infrastructure than residents on the outskirts of the Orpington Ward it would only be reasonable for these residents to have a say also.
We do know that Areli are not proposing to build a leisure centre and this will not form part of their new planning application. We do not know if Bromley will propose using any of the CIL to refurbish the Walnuts Leisure Centre. This new development needs to be right for the people of Orpington and this includes how the Community Infrastructure Levy is spent to ensure the necessary infrastructure is in place to support an increase in population and demands on local services and resources. We will need to lobby our councillors to ensure this money is spent in the best interest of Orpington residents and for those who visit the town.
Additional reading and information.
Community Infrastructure Levy. Charging Schedule.