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Infrastructure Funding Statement | 2019/20 December 2020

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Infrastructure Funding Statement | 2019/20 December 2020 Infrastructure Funding Statement | 2019/20 December 2020 www.cornwall.gov.uk Contents 1 Executive Summary 1 2 Introduction 2 2.1 What is an Infrastructure Funding Statement? 2 2.2 What are developer contributions? 3 2.3 Interactive story map 3 2.4 Summary of Key Headlines from 2019/20 4 3 Community Infrastructure Levy 5 3.1 CIL report as set out in CIL Regulation (2019 Amendment) 121A Schedule 2 Section 1 6 4 S106 Planning Obligations 10 4.1 S106 report as set out in CIL Regulation (2019 Amendment) 121A Schedule 2 Section 3 10 5 Planned Expenditure 24 5.1 CIL Infrastructure List 24 5.2 S106 focus 24 5.3 Public Open Space 25 5.4 Affordable Housing 25 5.5 Education 26 5.6 Transport 27 5.7 Health 27 Cornwall Infrastructure Funding Statement | 2019/20 | December 2020 2 1 Executive Summary Planning applica�on CI S CIL and S106 figures relate S agreement entered into to the 2019/20 financial year £5,576,017 of new S106 agreements Planning permission granted Calcula�on of CI payment required from development Development begins S and CI payments made during course of development £4,890,842 S106 received £749,389 of CIL collected Strategic CI S receipts allocated to projects £39,159 to Zone 5 Town Neighbourhood CI paments £7,389,302 allocated and Parish Councils £27,752 to Town and Parish Councils Projects delivered £4,152,965 of S106 money spent Cornwall Infrastructure Funding Statement | 2019/20 | December 2020 1 2 Introduction 2.0.1 This Infrastructure Funding Statement is the first that Cornwall Council has prepared under the new CIL Regulations. It sets out information on how funds have been collected from development, through CIL and s106 obligations to pay for much needed infrastructure across Cornwall. The collection and allocation of these funds is an important part of how the Council is delivering the infrastructure projects needed to support the Cornwall Local Plan, cooperating with our partners and other infrastructure providers. The IFS will be updated every year and will enable us to proactively manage infrastructure delivery and align to future reviews of the Local Plan. 2.1 What is an Infrastructure Funding Statement? 2.1.1 Amendments made to the Community Infrastructure Levy (CIL) Regulations in 2019, required local authorities to start reporting on the amount of developer contributions collected, allocated, and spent, in order to make the process of infrastructure funding more transparent. The Infrastructure Funding Statement (IFS) is an annual report which local authorities are now required to produce to set out this information in detail. 2.1.2 The IFS must be published by 31 December annually, and provide information from the previous financial year – the ‘reported year’. This report provides information on developer contributions received, allocated and spent by Cornwall Council, in the financial year 2019/2020. 2.1.3 In line with regulatory requirements, the IFS includes detail on the following information for the reported year: • CIL receipts and expenditure • The amount of CIL passed to Town and Parish Councils • The amount of CIL held at the end of 2019/20 • S106 receipts and expenditure • The amount of s106 held at the end of 2019/20 2.1.4 Key terms used: • Received – this relates to financial contributions which have been received into Cornwall Councils bank account. • Allocated – this is where an amount of money has been received and formally allocated to a specific infrastructure project. For s106 contributions, this means the service responsible for requesting the contribution, such as education or affordable housing, provide confirmation that the money has been allocated to a developed project, so it cannot be used for anything else. • Spent – this is where a previously allocated amount of money has been used to deliver the identified infrastructure project and is no longer held by Cornwall Council. • Reported year/period – this is the financial year to which the IFS relates. So, for an IFS published by 31 December 2020, the reported year will be 2019/20; for an IFS published by 31 December 2021, the reported year will be 2020/21, and so on. Cornwall Infrastructure Funding Statement | 2019/20 | December 2020 2 2.2 What are developer contributions? 2.2.1 Developers are required to make ‘developer contributions’ in order to help deliver the infrastructure that is needed to support development or address the cumulative impact of development on an area. These contributions can be financial, such as a sum of money paid to the local authority to provide affordable housing, or non-financial, such as the provision of affordable housing on the development site itself. There are two main types of developer contributions: • Section 106 agreements – also known as planning obligations, or simply, s106’s, these are agreements negotiated between planning authorities and developers, which secure the contributions necessary to make a development acceptable, such as affordable housing and infrastructure such as parks and new schools. A s106 agreement is a legally enforceable obligation entered into to mitigate the impacts of a development. • Community Infrastructure Levy – the CIL is a planning charge which allows planning authorities to charge a fixed rate per square metre of development to fund infrastructure which addresses the cumulative impact of development. Unlike s106 agreements, payment of CIL is not negotiable. The rates charged in Cornwall are set out in the CIL Charging Schedule1. 2.3 Interactive story map 2.3.1 We have created an interactive story map which provides information on developer contributions received and spent. The map can be accessed at www.cornwall.gov.uk/developercontributions, and provides information with geographic links and photographs - what s106 monies have been received in each Parish (and Community Network Area) and the planning application that receipts relate to 2.3.2 how much s106 money has been spent in the area, and what it has been spent on. The map is updated with new s106 information every three months. 2.3.3 It often takes time to spend s106 money after it is received – some agreements allow up to five, or even ten years, in which the money needs to be spent – and so there will be no correlation between the reported amount of s106 money received and spent in any one period. 2.3.4 More information on individual planning applications can be found on Cornwall Council’s planning webpages at www.cornwall.gov.uk/environment-and-planning/planning/online-planning-register. 2.3.5 The story map also provides information on the ‘Neighbourhood Portion’ of CIL that each Parish has received. The Neighbourhood Portion is paid based on CIL income received rather than anticipated income. The Neighbourhood Portion is paid twice a year, therefore, the information on the story map is updated every six months. 1 https://www.cornwall.gov.uk/cil Cornwall Infrastructure Funding Statement | 2019/20 | December 2020 Mount Hawke Park 3 2.4 Summary of Key Headlines from 2019/20 • £749,389.52 of CIL payments collected • £27,752.45 of CIL Neighbourhood payments passed to Town and Parish Councils • £39,156.50 of CIL funds allocated to Town and Parish Councils in zone 5 areas • Value of new s106’s entered into was £5,576,017.31 • S106 payments totalling £4,890,842.01 were received • S106 contributions totalling £7,389,302.93 were allocated to named projects • £4,152,965.61 of s106 contributions were spent • £11,371,246.22 of contributions received before the reported year have not been formally allocated2 • The total value of S106 contributions held at 31 March 2020, was £25,163,646.78 2 This will be due to the spending service waiting for sufficient contributions to be collected before a project can be delivered Cornwall Infrastructure Funding Statement | 2019/20 | December 2020 4 3 Community Infrastructure Levy 3.0.1 Development is liable for a CIL charge if it is creating one or more dwellings, or new floorspace of 100sqm or more. When a CIL liable development is granted planning permission, the amount of CIL required is calculated and sent to the planning applicant and/or landowner of the development on a CIL Liability Notice. 3.0.2 Some developments are able to claim exemption or relief from their CIL liability. This relates to development that is self-build housing, residential annexes and extensions, social housing and charitable development. Where a developer successfully claims one of these reliefs/exemptions, the development is not required to pay any CIL. 3.0.3 If there is an amount of CIL to pay, the developer is required to inform Cornwall Council when work is going to start on the development, and then a CIL Demand Notice is issued which sets out how much has become due and when it is due to be paid. 3.0.4 A CIL charge is payable either within 60 days of the commencement of a development, or within the terms of an instalment policy set by the CIL charging authority. Cornwall Council has an Instalment Policy in place which spreads the requirements to pay CIL over a period of time depending on the total liability for the whole development. 3.0.5 As a result of having an Instalment Policy, the CIL Demand Notices issued during a particular year do not necessarily equate to the CIL sums likely to be received during that year, and can take up to two years from commencement to be paid. In addition, developments can be altered through further planning permissions over time, often resulting in revised Demand Notices needing to be issued. Any such re-issued Notices are not double counted in this report; if a Demand Notice is issued and then re-issued in the same reporting year, only the re-issued Notice would be included within the figure for CIL invoiced during the year.
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