Senior councillors to discuss new Leeds development levy arrangements
Arrangements as to how the new Community Infrastructure Levy (CIL) will be managed in Leeds are to be discussed by senior councillors next week.
The levy, which will apply to new developments in the city from 6 April when national changes to the existing Section 106 regulations come into force, will be debated by Leeds City Council’s executive board on Wednesday 11 February, with a focus on how the funding generated will be split and managed at local levels.
Adopted alongside the overall Core Strategy which guides all future development across the whole Leeds district, the levy will collect contributions from developers for local infrastructure facilities such as transport, education, the Leeds Flood Alleviation scheme or green space.
Leeds City Council executive member for neighbourhoods, planning and personnel Councillor Peter Gruen said:
“The Community Infrastructure Levy offers local areas across Leeds the chance to benefit fully from future development, in a way which invests in and improves infrastructure and in turn promotes sustainable and inclusive economic growth. If we did not have a CIL we would not be able to begin meeting these needs. The CIL sets a clear rate, giving certainty to developers and communities on this infrastructure funding.”
Charging rates for the levy vary depending on the type of development being proposed and the area of the city it is proposed in. Much of the proposal to be discussed by councillors is based on government requirements, with the recommendation for the management at a local level of the funds received from each area as follows:
- 25 per cent given to town/parish council areas with an agreed neighbourhood plan
- 15 per cent given to town/parish council areas without an agreed neighbourhood plan
- 25 per cent for non-town/parish council areas with an agreed neighbourhood plan, with funding decisions to be made by local community committees
- 15 per cent for non-town/parish council areas without an agreed neighbourhood plan, with funding decisions to be made by local community committees
The funds would be transferred every six months, and there would be the flexibility for local areas to pool funds for infrastructure projects as required. Leeds City Council would work closely with all those receiving the funding to give advice and ensure the way it is to be spent is appropriate and in line with the CIL requirements and to address local infrastructure needs.
The CIL is expected to generate approximately £3.4million in the first two years from April 2015, increasing to £10.9m per year after five years. As such, the recommendation is that priorities for how the remainder of the CIL is to be spent by the council should be agreed on an annual basis as part of the council’s budget-setting process, taking into account the impact of infrastructure needs arising from new development. This includes up to five per cent to be retained for set up and administrative costs.
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