REVIEW: Community Infrastructure Levy (CIL) in London

Thank you to our delegates who came along to the CIL in London event on the evening of Wednesday 1st May at City Hall.

The presentations can be downloaded here.

Mark Lee from Communities and Local Government started off proceedings giving delegates an update on CIL legislation and guidance. In particular Mark touched upon the recently approved CIL (Amendment) Regulations 2013, which allow 15-25% of CIL to be dedicated to ‘neighbourhood’ infrastructure schemes, as well as the recently updated CIL statutory guidance published in December 2012 and updated in April 2013, which aim to clarify the relationship between CIL and S106s, and the ‘Regulation 123’ list. Mark also summarised the main proposals being consulted on in the CLG Consultation on Further Reforms to CIL, including possibly extending the CIL ‘deadline’ from April 2014 to April 2015.

Jamie Ounan from CIL Knowledge spoke about the importance of having a credible ‘infrastructure planning’ evidence base as part of CIL charge-setting. In particular, Jamie highlighted the point that CIL should only be seen as a small part of ‘infrastructure planning’ and that local authorities must adopt a comprehensive approach for it to be successful. Jamie also stressed the importance of linking infrastructure planning processes to the policies in the relevant local plan to help determine a funding gap and the ‘Regulation 123’ list. Examples of CIL examinations from Poole, Havant and Bristol were also touched upon to show the different approaches which can be taken in infrastructure planning.

Anthony Lee from BNP Paribas Real Estate gave a comprehensive talk on assessing viability as part of the CIL charge-setting process, and how the development industry can engage with this process. Anthony summarised the basic residual land value (RLV) method of viability assessments and introduced the differences between the RICS guidance ‘Financial viability in planning’ and the Local Housing Delivery Group guidance ‘Viability Testing Local Plans’.

Neil Lees from Transport for London spoke about the Mayor of London’s CIL and its progress ‘one year on’ after its implementation in April 2012. Neil provided delegates with a breakdown of the costs of Crossrail for which the Mayoral CIL is planned to contribute £300m. An overview of the relationship between Mayoral CIL and the recently adopted Funding of Crossrail SPG was also provided. Neil also detailed the working relationships between TfL, the GLA and the London Boroughs in considering ‘joined up’ approached in CIL collection and sharing of knowledge.

Andrew Barry-Purssell from the Greater London Authority was our final speaker of the evening. Andrew gave delegates his ‘top 12 tips’ on CIL which can be viewed in the presentation attachment above.

The speakers were then joined by Julian Ware from Transport for London finance department to take questions from our delegates. Questions included the impact of CIL on affordable housing and the implications of CIL for self-build.

Delegates were then able to enjoy a wine reception, kindly hosted by our sponsors, CIL Knowledge, BNP Paribas Real Estate and The Growth Agenda, which provided an excellent opportunity for networking with other practitioners.

You can follow the discussion on Twitter by using the hashtag #londoncil or by following us @RTPI_London.

About our sponsors

BNP Paribas Real Estate

13-04-08-BNPP Logo

BNP Paribas Real Estate is a leading firm of chartered surveyors with an extensive track record in advising on viability in planning, including working with more than half the London boroughs on the viability of CIL in their areas.

CIL Knowledge

13-04-09-CIL Knowledge Logo

The CIL Knowledge Partnership works with Councils and Developers to implement the Community Infrastructure Levy and assess its impact on developments. We have worked with over 50 Councils on their CIL projects and are the PAS and DCLG advisors on CIL; delivering the Direct Support Progamme and recent Seminar Series.

The Growth Agenda

13-04-09-Growth Agenda Logo

Bringing together several companies with a proven track record in the fields of development, regeneration and organizational change, we work in collaboration to provide local authorities with the tools to assess what growth means for their local area and support them to develop and implement a sustainable growth strategy.

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