Government launches review into Community Infrastructure Levy

As discussed last week by Development Specialist Richard Carr, the government has stepped forward to conduct an independent review into Community Infrastructure Levy.

Review in motion

Richard Carr wants an end to taxes

Richard Carr wants to see an end to s106 and CIL payments

Last week, Richard Carr criticised the development tax for being outdated and preventing economic growth. Former CEO of the British Property Federation Liz Peace will led the government review to assess if the tax is meeting its original objectives of providing a faster, fairer, more certain and transparent means of funding infrastructure via developer contributions.

Ministers will: “assess the extent to which CIL does or can provide an effective mechanism for funding infrastructure, as well as recommend changes that would improve its operation in support of the Government’s wider housing and growth objectives.”

Government set to keep CIL

Many developers, including Richard Carr, believe the tax should be scrapped completely, however it appears that the government is set on reviewing and improving rather than removing.

Communities Secretary Greg Clark said: “This independent review will examine how we can improve the community infrastructure levy to ensure it best benefits local communities whilst delivering the houses the country needs.”

Whilst, Planning Minister Brandon Lewis added: “As a government we want to build more homes, supported by people who live in the area and this review will look for new ways in which proposed development can benefit whole areas.”

The review will:

  • assess whether CIL is meeting its objectives of providing a faster, fairer, more certain and transparent means of funding infrastructure through developer contributions
  • look at the relationship between CIL and s.106 agreements
  • consider how reliefs and exemptions operate and whether the neighbourhood element of CIL is helping to increase community support for development

Tax is slowing down building

Whatever the outcome of the review is, Richard Carr believes that unless it is abolished completely, house building in the UK will continue to not meet the very high demand. The housing sector is a huge factor in the country’s economic growth, providing jobs, opportunities and homes. It effects the entire population.