Information for Town and Parish Community Councils

Infrastructure Levy Spring 2015 www.suffolkcoastal.gov.uk/CIL

Inside this information sheet:

WHAT CAN CIL BE SPENT ON? Find out how CIL can help to support Raising funds for new and improved development in your area by funding community facilities, open space, school infrastructure places and more. See Page 2

WHAT ARE THE CIL CHARGES? The Community Infrastructure Levy (CIL) is a new way in CIL Charges vary depending on the type and location of the development. Find out the which the Council collects financial contributions from rate of CIL for your area. See page 2 developers to help pay for new and improved infrastructure.

WHAT PERCENTAGE OF CIL FUNDS GO TO

PARISH AND TOWN COUNCILS? The levy applies to developers building Money raised can be spent on anything CIL is designed to incentivise development new homes (use classes C3 and C4), that deals with the demands that in an area. Find out the percentage of CIL and convenience retail shops. development places on the area, such funds your Parish or Town Council is as open space, school places, cycle / entitled to. See page 3 The development of affordable pedestrian routes, strategic transport housing (i.e. social rented, affordable infrastructure and community PRODUCING AN ANNUAL REPORT OF CIL rented and intermediate housing) facilities. FUNDS qualifies for 100% relief from CIL. This Each year Parish and Town Councils will means a developer will not pay CIL on CIL will replace most pooled financial need to detail what CIL funds they have affordable housing, providing they contributions currently made through received and where funds have been spent. See page 4 claim the relief. ‘Section 106 Agreements’ and upfront payments towards things such as open Town and Parish Councils will receive space and school places. Section 106 GET IN TOUCH 15% of CIL from development in their agreements will continue to be used  suffolkcoastallocalplan@eastsuffolk.gov.uk area. In areas where a Neighbourhood for certain site-specific infrastructure.  01394 444558 Plan is in place, the proportion is 25%.  Suffolk Coastal District Council, Melton Find out more inside and by visiting Hill, Woodbridge, Suffolk IP12 1AU www.suffolkcoastal.gov.uk/CIL

Grove Medical Centre image courtesy of James Totty Partnership Community Infrastructure Levy Information for Town and Parish Councils

What will CIL be What are the CIL charges? spent on? CIL charges vary depending on the type and location of CIL will be spent on infrastructure the development. such as: • open space • school places High • cycle and pedestrian routes Medium • strategic transport infrastructure • community facilities Low Adastral Park CIL must be spent on infrastructure necessary to support development planned in the Council’s Local Plan. Importantly, Town and Parish Councils will receive a share of CIL known as ‘Neighbourhood Funding’ for spending on their own priorities as detailed opposite.

Funds can be spent on infrastructure, which includes open spaces

Areas without Parish or Town Councils (Parish Meetings)

In areas where no Parish or Town Council exists, CIL funds will be retained in full by the District Council (Parish Meetings are not the same as Residential Charging Zone CIL charge per sqm Parish Councils). High £150 Medium £90 The Parish Meetings are: , Burgh, , Cransford, Low £50 , , , Adastral Park £0 and

Other Types of Development CIL charge per sqm

In these areas the Council will (applicable throughout the District) consult with the local communities Wholly or mainly convenience retail £100 to agree on how to spend the Neighbourhood Funding. Wholly or mainly comparison retail £0 All other uses £0 2 Map: Reproduced under license SLA100042052. from the Ordnance Survey mapping with the permission of the Controller of Her Majesty's Stationery Office © Crown copyright 2000. Unauthorised reproduction infringes Crown copyright and may lead to prosecution or civil proceedings At least 15% of CIL funds will be passed Illustrative examples 8 market homes in to Parish and Town Councils In one financial year, 8 market homes (each 90sqm in size) are built in ‘Neighbourhood Funding’ means Parish and Town Darsham. Councils can spend CIL funds on their own priorities. Darsham is in the 'high' zone, so this raises a CIL of £108,000 CIL is not only designed to pay for If a Parish or Town Council approve (8 x 90sqm x £150 per sqm). infrastructure needed to support a Neighbourhood Development growth, it is also designed to Order (an order which grants Darsham currently has 171 dwellings so incentivise communities to welcome planning permission for a specified the annual amount Darsham Parish and promote new development in development or type of Council can receive is capped at £17,100. their area. As such, the regulations development) they will receive 25% require the District Council to pass a of the CIL raised from development 15% of £108,000 is £16,200, just below proportion of CIL funds raised in a permitted by that order even if the cap. Therefore in this year Darsham Parish Council would receive £16,200 of particular area to the relevant there is no Neighbourhood Plan in CIL. Parish or Town Council. place for the rest of the area. 50 market homes in The figure is 15%, subject to an The relevant proportion of CIL funds 50 annual cap. The cap is equivalent to will be passed to the Parish or Town In one financial year, market homes (each 90 sqm in size) are built in £100 multiplied by the number of Council every 6 months. Funds will Rendlesham. dwellings in the Parish. In most be passed to the Parish or Town cases the annual cap will not reduce Council on 28th October for all As Rendlehsham is in the 'mid' zone, the CIL funds passed to Parish and funds received between April and this raises a CIL of £405,000 Town Councils due to the level of September, and 28th April for all (50 x 90sqm x £90 per sqm). development planned. funds received between October and March. As Rendlesham has a neighbourhood When development liable for a plan, Rendlesham Parish Council charge is built in an area covered by It should be noted that CIL is paid in receives 25% of the CIL, uncapped. a Neighbourhood Plan, the relevant installments upon commencement 25% of £405,000 is £101,250. Parish or Town Council will receive a of development so it may be some higher proportion of 25%. In time following the granting of Therefore in this year Rendlesham Parish addition, there is no annual cap in planning permission that a Parish or Council would receive £101,250. the area covered by the Town Council receives its proportion Neighbourhood Plan. of CIL funds. 75 market homes and a 200 sqm convenience shop in In one financial year, 75 market homes and a 200 sqm convenience shop are built Supporting development in an area in Saxmundham. CIL funds must be used to support development. As Saxmundham is in the 'mid' zone, the housing raises £607,500 (75 x 90sqm x £90 per sqm) and the convenience shop The proportion of CIL that a Parish This gives Parish and Town Councils raises £20,000 (200 sqm x £100 per sqm), or Town Council receives must be considerable freedom to spend their a total of £627,500. used to support the development of proportion of CIL on the things that the area. Funds can be spent on: address the impacts of development Saxmundham currently has 2,022 • the provision, improvement / on their area. Examples include: dwellings. Therefore the annual cap is replacement, operation or • Improvements to a village hall £202,200 maintenance of infrastructure; • New or improved play areas 15% of £627,500 is £94,125, which is or • Provision of affordable housing below the cap. • anything else that is concerned • Preparation of a Neighbourhood with addressing the demands Plan (providing it addresses the Therefore in this financial year, that development places on an demands that development Saxmundham Town Council would area. places on the area). receive £94,125. 3 Community Infrastructure Levy Information for Town and Parish Councils

Key points to Producing an annual report of CIL remember when funds spending CIL Parish and Town Councils that receive CIL must prepare It is good practice to discuss any an annual report detailing funds received and spent. potential expenditure of CIL funds with the District Council. Early Parish and Town Councils that have The report must be published on discussion will ensure that projects received a proportion of CIL funds the Parish or Town Council website are in line with the regulations and have a duty to produce an annual if they have one. The report must will also allow other funding sources report that details the amount of also be sent to Suffolk Coastal to be explored and whether some of CIL funds received and spent. District Council by 31st December. CIL managed by the District Council The District Council will publish all can go towards the project. The report must set out the reports on its website as well. It following: would also be good practice to put a Parish / Town Plans and summary of the report in any Parish Neighbourhood Plans can act as a • The total amount of CIL received newsletter or on public notice good starting point for prioritising for the financial year boards. CIL spend. • The total amount of CIL spent in the financial year CIL funds are subject to the same Consider whether the expenditure • A summary of expenditure requirements for financial addresses the extra demand on including details of what items management and auditing as all infrastructure and services that is CIL was spent on and the monies Parish and Town Councils caused by development. CIL cannot amount of CIL expenditure on receive and spend as detailed in the be used as a replacement for each item. Local Government Act 1972 and the everyday Parish or Town Council • Any CIL that has been handed Accounts and Audit (England) expenditure. back to the District Council due Regulations 2011. to failure to spend or applying Any funds which are erroneously CIL funds to inappropriate items. If a Parish or Town Council does not spent will need to be handed back • The total amount of CIL from the wish to receive some or all of the to the District Council. Additionally, financial year unspent and the CIL receipts they are eligible for they funds which are not spent within 5 total amount of CIL from must write to the District Council years must also be handed back to previous years unspent. informing them of their position. At the District Council. If the Parish or any time a Parish or Town Council Town Council has to hand funds The report must be published by can resume their rights to receive back but cannot afford to, the 31st December following the some or all of the CIL funds by District Council will recover the reported year (e.g. for the financial writing again to the District Council. funds by deducting from future CIL year 2015/16 the report must be Future receipts will then be passed receipts that were due to be passed published by 31st December 2016). to the Parish again. to the Parish or Town Council.

twitter.com/suffolkcoastal