In the realm of property development, the challenge often lies not just in the brick and mortar but in the labyrinth of regulations, policies, and costs that come along. For small developers in Bristol, one such challenging aspect has always been the Community Infrastructure Levy (CIL). Introduced as a tool to assist local authorities in funding necessary infrastructure, the levy has often been seen as a bone of contention by developers, given its intricate nature and potential implications on the feasibility of housing projects.
This article aims to guide you through the complexities of the CIL, providing a navigational compass to traverse through this maze. We will delve into the planning and development of sites, the role of local authorities, the impact on housing, the intricacies of infrastructure and permission, and the changes proposed in the levy.
Understanding the Community Infrastructure Levy
Before we delve into the complexities of the CIL, it’s crucial to understand its purpose and workings at a fundamental level. The CIL is a tool employed by local authorities to help fund the infrastructure required to support the development of their area. Levied on new development, it is primarily designed to supplement other funding streams and contribute to the provision of infrastructure to support the development of an area.
The CIL is charged based on the gross internal area of new development and is expressed as a rate per square metre. The levy rate varies across different areas in Bristol, with the charge rates set out in the local authority’s CIL Charging Schedule. The charge is typically payable upon commencement of development, however, in certain circumstances, it is possible to negotiate phased payments or exemptions.
Challenges for Small Developers
Small developers, more than their larger counterparts, often grapple with the costs and intricacies associated with the CIL. The levy, which is calculated based on the size of a new building or extension, can often constitute a significant part of the project costs. This can affect the feasibility of housing projects planned by small developers.
Moreover, grappling with the intricacies of the CIL can also prove to be time-consuming. Understanding the various exemption and relief categories, the intricacies of the permissions required, and the nuances of the levy calculation often necessitates a deep dive into policy documents and regulations.
Role of Local Authorities and Planning Permissions
Local authorities play a crucial role in the implementation and enforcement of the CIL. They are responsible for setting the levy rates, granting planning permissions, and enforcing the levy. Understanding their role and the planning permissions required is key to successfully navigating the complexities of the CIL.
Planning permission is often a pre-requisite for development. The CIL becomes chargeable once planning permission is granted for development. It’s crucial to bear in mind that the failure to pay the levy or comply with the procedural requirements can lead to surcharges and interest, potentially escalating the costs of the levy.
Proposed Changes to the Levy
Understandably, concerns have been raised by small developers regarding the impact of the levy on the viability of their projects. Recognising these concerns, authorities have proposed changes to the CIL and the broader planning system.
A draft of these proposed changes is often available on the website of the local authority or the Ministry of Housing, Communities & Local Government. Keeping abreast of these proposed changes can assist small developers in adjusting their project plans and budgets accordingly.
Navigating the CIL: Tips for Small Developers
For small developers seeking to navigate the complexities of the CIL, knowledge and planning are key. Understanding the intricacies of the levy and staying up-to-date with the proposed changes can go a long way in ensuring that you are prepared to meet the challenges head-on.
It’s also crucial to consult with experts in the field, such as planning consultants and solicitors, who can provide tailored advice and assist with the procedural requirements.
Lastly, it’s important to factor the CIL into your project budgets right from the planning stage. This will ensure that you are not caught unawares by the costs involved, and can plan your housing projects in a manner that is financially viable.
Remember, while the CIL may appear complex and daunting, with the right knowledge and planning, it is possible for small developers to successfully navigate its intricacies and turn their housing projects into reality.
The Nexus of CIL and Local Planning Policies
Gaining a comprehensive understanding of the CIL necessitates a deep dive into local planning policies. It should be recognised that these policies serve as a blueprint guiding the development of local areas. They spell out the vision, strategic priorities, planning policies, and proposals for future development. While the national planning policy framework sets out the government’s planning policies for England, local planning policies are developed by local authorities to guide development in their respective areas.
The relationship between the CIL and local planning policies is both direct and intricate. The local plan delineates the development and infrastructure needs of a local area. It is this infrastructure requirement that the CIL seeks to finance. Hence, understanding the local plan can provide a valuable insight into the levy amounts required and the potential infrastructural developments that may impact the development process.
Furthermore, the local plan policies often outline the specific circumstances under which a developer might be required to pay the CIL. The plan might also specify the types of development that are exempt from the levy. For example, affordable housing and developments undertaken by charities are frequently exempt.
In the context of small and medium sized developers, understanding these exemptions is crucial. By accurately assessing the applicability of the CIL to their projects, developers can accurately forecast their budgets, making their housing contributions more financially feasible.
For small sites and strategic sites alike, planning permission is a vital element in the development process. It should be noted that the CIL becomes payable once planning permission is granted. Depending on the local planning policies, there might be stipulations on the payment of CIL in the event of permitted development. Therefore, it is essential for small developers to understand the intricacies of the planning permission process and its connection to the infrastructure levy.
Conclusion: Successfully Navigating the CIL Maze
Navigating the complexities of the Community Infrastructure Levy, especially as a small developer in Bristol, can be daunting. However, having a solid understanding of the leviathan that is the CIL is not only achievable but completely feasible. By comprehending the fundamentals of the levy, grasping the role of local authorities, and keeping up-to-date with proposed changes, small developers can ensure their projects align with the realities of the CIL.
Understanding local planning policies, planning permission granted, and developer contributions is crucial when it comes to the successful navigation of the CIL. It allows small developers to adjust their project plans and budgets accordingly, thus ensuring the financial viability of their housing projects.
Expert advice should be sought where necessary, as it can provide detailed and tailored insight into the planning system. Coupled with accurate budgeting, this knowledge can contribute to ensuring housing projects are not only financially viable but also contribute to the fulfillment of local plan policies.
In conclusion, the CIL should not be viewed as an insurmountable obstacle. Rather, it should be seen as a pivotal component of property development, one that can be successfully navigated with the right knowledge and planning. In doing so, small developers can ensure their housing projects come to fruition, contributing to the ongoing development and growth of Bristol.
