Annual CIL Update 2015

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1 Annual CIL Update 2015

2 it is the taking by the community for the use of the community of the value creation of the community Henry George, 1897

3 Five years of CIL Progress of CIL in London A borough perspective A private sector perspective

4 Annual CIL Update 2015 DCLG Update Tom Winter DCLG

5 Introduction Today Whitehall update CIL Overview Where next?

neighbourhood planning, locally-led Garden Cities; give people more say over local planning; Devolution of powers and budgets we will make sure

6 Whitehall Update Manifesto Commitments: planning 200,000 Starter Homes by 2020 A new Right to Build for people to build or commission their own home Ensure that 90% of suitable brownfield sites have planning permission for housing by 2020 Strong protection for the Green Belt Support neighbourhood planning, locally-led Garden Cities; give people more say over local planning; Devolution of powers and budgets we will make sure local communities know up-front that necessary infrastructure such as schools and roads will be provided - Conservative Party Manifesto 2015 (p.52)

Statement, 2 March 2015 Reviewing the Community

7 Coalition Commitments: CIL Exempting Starter Homes Whitehall Update Brandon Lewis, Written Ministerial Statement, 2 March 2015 Reviewing the Community Infrastructure Levy in 2015 Localism Bill: CIL Impact Assessment, January 2011

CIL 2010-2015 Background S106 planning obligations Variously described as opaque, slow, unfair, complex and reactive ODPM, 2004 Community Infrastructure Levy - Planning Act 2008; CIL Regulations 2010

8 CIL Background S106 planning obligations Variously described as opaque, slow, unfair, complex and reactive ODPM, 2004 Community Infrastructure Levy - Planning Act 2008; CIL Regulations Fixed charge on new floorspace ( x per square metre) - Rates set out in charging schedule - Subject to public consultation and examination - Restricts operation of s106 Fairer, faster, more certain and transparent contributions ( we will scrap CIL ) Open Source Planning, Conservative Party Green Paper, 2010

9 Coalition Government CIL Retained Committed to keeping the Levy (but more flexible) Reformed The neighbourhood portion (15 or 25% to parish councils) New exemptions and reliefs (self build, extensions/annexes, social housing) Amended Technical changes to iron out practical issues e.g. payment in kind, abatement, phasing, differential rates Pooling restriction moved to April 2015

10 The 2015 Amendment CIL Extension of mandatory social housing relief Reg 49 relief extended to cover non-registered providers October 2013 Government Response To qualify: Properties let at 80% of market rent To people in housing need Planning obligation to secure compliance with these conditions 7-year clawback plus interest

11 CIL The Community Infrastructure Levy Regulations 2010 (as amended by) The Community Infrastructure Levy (Amendment) Regulations 2011 (and ) The Community Infrastructure Levy (Amendment) Regulations 2012 (and ) The Community Infrastructure Levy (Amendment) Regulations 2013 (and ) The Community Infrastructure Levy (Amendment) Regulations 2014 (and ) The Community Infrastructure Levy (Amendment) Regulations 2015.

12 CIL

13 What Next? CIL CIL Review Referred to by previous Ministers No announcement on timing, format, duration yet Watch this space CIL Research University of Reading/Three Dragons Plugging evidence gap Not the review itself

14 Overview of CIL in London Neil Lees, TfL Annual CIL Update 2015

15 Borough CIL s

16 Borough CIL Progress across London MAP 16

17 EXAMINATIONS - Issues REDUCE RATE CHARGE NO CHANGE REMOVE MAPPING DEFINITIONS 17

18 350 BOROUGH CIL RATES (maximum) Residential Office Retail Hotel Redbridge Wandsworth Bexley Lambeth Kingston K & C 18

19 PANACEA? Infrastructure needs v CIL income 102m 481m 53m 550m 112m HAMMERSMITH & FULHAM SOUTHWARK 215m 11m 52m 10m 19 SUTTON BEXLEY

20 INFRASTRUCTURE NEEDS PUBLIC REALM LEISURE TRANSPORT EDUCATION HEALTH COMMUNITY FACILITIES PARKS / OPEN SPACE 20

21 PANACEA? Speed & Certainty Past Present MCIL BCIL s s106 s106 21

22 STILL EARLY DAYS / NEXT STEPS Development pipeline Receipts Spend priorities Infrastructure delivery Neighbourhood Plans ~ ~ ~ ~ ~ ~ ~ Annual Monitoring Reports CIL Reviews CIL II s 22

23 Mayoral CIL

24 Funding of Crossrail Network Rail Greater London Authority Department for Transport Transport for Transport London for London Developer Contributions (Mayoral CIL and Crossrail S.106)

25 Crossrail s106 Spatial & Land Use specific

26 26 MCIL: London-wide

27 Breakdown of s106 Crossrail Contributions by Borough Hackney Camden Tower Hamlets Newham Islington Southwark City Westminster 27

28 Cumulative MCIL receipts by borough Westminster Lambeth Southwark Tower Hamlets Wandsworth City Camden

29 29 Development Activity

30 30 MCIL receipts by borough

31 Significant MCIL contributions 250 City Road 4m North Westminster School 1.4m Western District Office 1.7m Aldgate Place 1.7m Eileen House 1.4m Earl s Court 3m+ Market Towers 3.5m Sainsbury s (Nine Elms) 3.5m

32 32 Growth in MCIL Receipts

33 Millions Looking Forward 700 Cumulative Total of Crossrail funding - Actual & Forecast / / / / / / / /19 Mayoral CIL Crossrail S

34 MCIL ~ Observations. London collection arrangements functioning well Interpretation / Application of regulations Development numbers still rising Significant increase in larger developments (> 250k) Increase in the use of Instalments Short-term confidence levels re 2015/16 receipts If 600m achieved ~ what future for Mayoral CIL?? 34

35 35 A Future Mayoral CIL?

36 Looking Ahead

37 37 Interesting Times

38 Development & CIL Influences

39 Meeting the challenges of CIL DCLG Charging Authorities Developers Collecting Authorities Planning Consultants 39

40 Thank You Contact:

41 CIL: A BOROUGH PERSPECTIVE Rob Krzyszowski, Planning Policy Team Leader

42 CIL: A BOROUGH PERSPECTIVE CIL IN RBKC CIL CHARGE-SETTING Evidence & examinations CIL COLLECTION Tips & tricks SPENDING CIL R123 List & S106s

43 CIL IN RBKC

44 Millions MAYORAL CIL

45 RBKC CIL Jan 13 PDCS Mar 14 Submit Oct 14 2 nd Hearing Jan 15 Council Approval Jan 14 DCS Jun 14 1 st Hearing Dec 14 Examiner Report 6 Apr 15 Took effect 2 years 3 months

46 RBKC CIL CHARGING SCHEDULE

47 CIL CHARGE-SETTING: EVIDENCE & EXAMINATIONS

48 CIL AS % OF COSTS 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Site 1 Site 2 Site 3 Site 4 Site 5 Site 6 Site 7 Site 8 Site 9 Site 10 Site 11 Site 12 Kensal

49 STRATEGIC SITES The focus should be in particular on strategic sites on which the relevant Plan relies... Provide a robust evidence base about the potential effects of the rates proposed, balanced against the need to avoid excessive detail... (Paragraph 019, PPG: CIL)

AFFORDABLE HOUSING 1 You may find that some sites are unviable with full policy compliant % of affordable housing regardless of CIL Neither legislation nor

50 AFFORDABLE HOUSING 1 You may find that some sites are unviable with full policy compliant % of affordable housing regardless of CIL Neither legislation nor guidance explicitly require full % of affordable housing in CIL viability testing Legislation: strike an appropriate balance and have regard to the guidance

51 AFFORDABLE HOUSING 2 Guidance: take development costs into account... such as policies on affordable housing ; CIL should contribute towards the implementation of ; not threaten and be consistent with, and support the implementation of the relevant plan Relevant plan policy wording is crucial Other policies in the relevant plan are just as important e.g. infrastructure

52 CIL COLLECTION: TIPS & TRICKS

53 PHASING 1 a planning permission which expressly provides for development to be carried out in phases (Regulation 2(1))

54 PHASING 2: DEMOLISHED CREDIT In calculating a CIL liability, the value of E (existing demolished floorspace) can carry forward un-used demolished floorspace from previous phases i.e. a demolished credit (see Regulation 40)

55 COMMUNAL DEVELOPMENT Communal development, such as corridors, stairs, common rooms and car parking can benefit from Social Housing Relief, rather than just the individual dwellings (see Regulation 49C)

56 RBKC CIL CALCULATOR 1

57 RBKC CIL CALCULATOR 2

58 RBKC CIL CALCULATOR 3

59 RBKC CIL CALCULATOR 4

60 RBKC CIL CALCULATOR 5

61 SPENDING CIL: R123 LIST & S106s

62 REGULATION 123 LIST Regulation List... As easy as...?

63 RBKC R123 LIST Category R123 List Exceptions from R123 List Mechanism CIL S106 / site (A) Affordable housing (B) Education Education (C) Community facilities Health, libraries, sport, leisure, community, police, culture etc (D) Public realm Parks & open space, streetscape (E) Transport Public transport, highways (F) Natural resources (G) Employment & training Flood risk, air quality, waste, biodiversity Affordable housing On-site transport, highways Energy efficiency, renewable energy Employment & training

64 RBKC R123 LIST EXCEPTIONS Infrastructure specifically required to make a development acceptable On-site infrastructure required by the Development Plan Infrastructure at Kensal Gasworks & Earls Court (zero CIL rates)

65 SPENDING CIL Will take some time for substantial CIL receipts to build up Lots of competing interests in CIL monies: not a bottomless pot of money Timescales aligned with Capital Programme Cabinet / Cabinet Member level decisions Using existing consultation routes for Neighbourhood CIL

66 NEIGHBOURHOOD CIL Neighbourhood CIL can be spent on infrastructure or anything else that is concerned with addressing the demands that development places on an area (Regulation 59C,F)

67 rbkc.gov.uk/cil

68 Thank you

69 Happy Birthday to CIL 2008 Planning Act First Regulations in 2010 Redbridge: January 2012 Mayor of London: April 2013 Pooling restrictions April 2015

71 Mayor of London CIL

72 Legislation, Regulations & Guidance Section 73 Instalments Communal Areas Phasing Abatement Reliefs Use of S106 Tests for CIL Setting Neighbourhood Proportion Extensions & Self Build Abatement

73 Post Revisions Examinations

74 Implementation Forms Reliefs Social Housing Exceptional Circumstances Measurement Definitions: ( In Use, Abandonment Building, Dwelling, Use, Planning Permission, Reason For Granting Planning Permission )

75 Section 106: The Reports of my Death Have Been Reg 122: Greatly Exaggerated Tests: Necessary, directly related, fair and reasonable in scale and kind; Reg 123: List of relevant infrastructure: Generic, Specific, with and without exceptions (generic or specific) implications should be tested at examination; Pooling restriction: infrastructure project or type of infrastructure

76 To watch out for CLG CIL Research & Review; Implementation of post-borough CIL planning permissions; Strategic and publically owned sites identify requirements early, engage and understand balance and timing of obligations, management of existing uses & phasing; Appeals: Section 106 BA and BC; Test cases on Regs 122 & 123; Delivery of infrastructure

78 Thank you

79 Annual CIL Update 2015

Section 106 & CIL. Chapter 10. new pedestrian bridge across the river. new social infrastructure. new linear park. improved road environment

Section 106 & CIL. Chapter 10. new pedestrian bridge across the river. new social infrastructure. new linear park. improved road environment Chapter 10 Section 106 & CIL Mayor of London 141 new pedestrian bridge across the river new social infrastructure Chapter 10 Section 106 & CIL new linear park improved road environment improved river walk