COMMUNITY INFRASTRUCTURE LEVY

A Critical Evaluation of the Changes Made By the Current Coalition Government to the Community Infrastructure Levy Regime Introduced By the Previous Labour Government

A Critical Evaluation of the Changes Made By the Current Coalition Government to the Community Infrastructure Levy Regime Introduced By the Previous Labour Government

Introduction

The assignment assigned to me is regarding the changes made by the current Coalition Government to the Community Infrastructure Levy regime, which was implemented by the prior government. Prior government introduced The Community Infrastructure Levy (CIL), which came in action in April 2010. This was drawn by gathering the inspiration from numerous “tariff scheme” that were convinced by local individual authorities, for formalising contributions of developers in their respective areas. This system permitted local authorities in England and Wales to gather funds from developers that are taking projects of building their area, by levying significant amount of their developments. The current government has although retained the mechanism; however, slight changes are brought. I shall evaluate the significant impact these changes will bring on the community infrastructure and relief that can be provided by paying the levy. I shall then also determine the extent to which planning obligations will continue to have a significant role in negotiating development projects.

Infrastructure

The term infrastructure was first used in 1927, to describe the base or foundation for an organization or system, referring to transport links and bridges necessary for the effective functioning of an industrial economy. It is now applied to any substructure or underlying system, e.g. the financial infrastructure of big businesses and the infrastructure of groups, committees, and admirers of political organizations. Modern usage includes the permanent facilities needed to serve an industrial economy: communication networks; energy and water supply; education and training facilities; health-care and leisure facilities; public institutions including schools, post offices, parks and prisons”. In the Planning Act 2008 infrastructure also includes flood defences, schools, hospitals, and other health and social care facilities.

Discussion

Community Infrastructure Levy

In both the new Greater London council (GLC) estates of the 1920s and 1930s, such as Burnt Oak (Edgware) and the post-war New Towns, infrastructure was usually developed only after the housing was completed with new residents existing for some months on building sites with inadequate facilities. It is now recognised that the infrastructure provision needs to be delivered in a timely fashion, for which authorities can use the levy to enable this to happen. (Community Infrastructure Levy, 2011)

In April 2010, the previous Labour Government introduced the Community Infrastructure Levy, permitting English and Welsh local authorities to impose a levy on potential developers in their area to fund a wide range of infrastructure needs, arising from their intended projects. These councils and authorities produce local development plans informed by assessments of infrastructure needs.

The Labour Government considered the levy to be the best way of funding new infrastructure and unlocking land for development. They maintained that it provided greater efficiency, justice, certainty and transparency than the planning obligations with their long and protracted ...