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Introduction to Community Infrastructure Levy (CIL)

In order to raise funds for new infrastructure development, local authorities in the United Kingdom can impose a charge knows as the Community Infrastructure Levy (CIL). CIL can assist in raising funds to support new services, facilities, and infrastructure such as transportation, schools or digital transformation initiatives which are required to maintain new businesses and homes around the Councils. The amount can be used to fund an extensive series of infrastructure needs including better and improved road schemes, health care facilities, leisure centres and park improvements, flood defence etc. Introduced by the Planning Act 2008, the CIL is a development charge tool for local councils in England and Wales to provide infrastructure to support the improvement of their region. Community Infrastructure Levy came into force on 6-Apr-10 via the CIL Regulations 2010. Most new improvements which build net supplementary floor space equal to or greater than 100 square metres, or build a new private house, are, in theory, legally responsible for the levy.

Community Infrastructure Levy (CIL) Information

The Localism bill, under David Cameron’s government, had a section on increasing local control of public finance, including a requirement on councils to allocate a proportion of revenue from the Community Infrastructure Levy back to the neighbourhoods where it was raised. Using new authorities presented in the Localism Bill, the Government required charging authorities to assign a significant percentage of levy revenues raised in each area back to that locality. This will make certain that where a locality bears the burden of new developments, it also gets adequate money to manage those effects. It accompaniments the introduction of some different incentives for local authorities that aim to make sure that local areas benefit from the development. Local authorities are expected to work closely with localities to choose what arrangements they need, and balance locality funding with broader infrastructure funding that supports growth. They will maintain the capability to use the levy income, to address the increasing impact on infrastructure that may take place

Also Read: Tax changes Wales

CIL permits local councils in England and Wales to generate funds from developers undertaking fresh construction projects in their area. The authorities who can charge CIL include the Broads Authority, district and metropolitan district councils, national park authorities, London borough councils, the Mayor of London, and unitary authorities. In Wales, the national park authorities, county borough councils, and county will have the authority to charge the levy. All these bodies make development plans for their respective areas, which are up-to-date by valuation of the infrastructure requirements for which the levy may be collected

Definition of infrastructure

The Planning Act 2008 offers a comprehensive definition of infrastructure which can be funded – this comprises flood defence, transport, hospitals, schools, and other social care amenities. This definition permits the CIL to be used to fund a wide-range of facilities such police stations, parks, play areas, cultural and game facilities, and district heating schemes. This provides local groups the flexibility to select what structure they require to deliver their development plan in the local areas

Benefits of Community Infrastructure Levy (CIL)

According to the United Kingdom Government, this tariff-based methodology makes available the best structure to raise funds for new infrastructure. The Community Infrastructure Levy is unbiased, quicker, and more assured and transparent as compared to the system of planning responsibilities which creates postponement of results due to prolonged discussions and negotiations. Levy rates are decided with local communities’ and developers’ consent – this approach provides developers with much more assurance about how much cash they can except to be contributed

As per the planning obligations’ system, only 6% of entire planning authorisations brought contributions to support the infrastructure cost. On the contrary, CIL creates a rational system, with generating contribution towards supplementary infrastructure that is compulsory for the development

Technology and Community infrastructure levy

Contracts and tenders awarded by local authorities for Community Infrastructure Levy (CIL)
Organisation providing services UK’s Local council/authority Start Date Closing Date Description
Exacom Systems Tamworth Borough Council Oct-18 Oct-21 A contract for software solution for the administration of the Community Infrastructure Levy
Exacom Systems Eastbourne Council Jan-18 Mar-19 A contract for software and maintenance (Community Infrastructure Levy)
Swift DataPro Colchester Borough Council Apr-16 Apr-21 A contract for Community infrastructure levy (CIL) IT solution
Idox Wakefield Council Sep-16 Sep-19 A contract for the provision of a community infrastructure levy software module
NA Bradford Metropolitan District Council Jan-18 Jul-21 Tender for a way-out for the supremacy of liable applications that administers the statutory requirements for community infrastructure levy (CIL)
NA Kirklees Council Jun-17 Nov-21 Tender for community infrastructure levy (CIL) software
NA Cheshire East Borough Council May-17 May-21 Tender for an integrated software management package and information system to facilitate Community Infrastructure Levy (CIL) collection, payments and governance processes

Other details

Hertsmere Borough Council was the first authority to introduce the Community Infrastructure Levy (CIL) in Hertfordshire. The Council has charged CIL for new developments approved since Dec-14, resulting in the collection of almost £5.0mn of CIL monies to date. S106 agreements continue to be used to secure financial contributions to fund the delivery of Affordable Housing, where it cannot be provided on or off-site, and for any site-specific or non-financial requirements. Hertsmere Borough Council is inviting expressions of interest from software providers with products which can support the administration and collection of both CIL and s106

Below mentioned is a list of few Local Councils and their spend on information technology (IT) for FY2017/18
Local authorities IT spend for FY2017/18
(in £mn)
Birmingham City Council 111.95
Enfield London Borough Council 53.87
Barking and Dagenham London Borough Council 43.83
Lancashire County Council 43.31
Essex County Council 42.85
Kent County Council 40.50
Haringey London Borough Council 37.82
Redbridge London Borough Council 37.57
West Sussex County Council 33.53
Hampshire County Council 32.61
Westminster City Council 31.65
Sheffield City Council 31.65
Lincolnshire County Council 31.27
Salford City Council 30.65
South Tyneside Council 28.82
Barnet London Borough Council 28.10
Surrey County Council 25.98
Lambeth London Borough Council 25.69
Kingston upon Hull Council 25.64
Southampton City Council 24.87
Tower Hamlets London Borough Council 22.96
North Tyneside Metropolitan Borough Council 22.19
Somerset County Council 21.89
Hertfordshire County Council 21.71
Leeds City Council 20.76
Cumbria County Council 20.67
Peterborough City Council 20.35
Southwark London Borough Council 19.46
Croydon London Borough Council 19.35
Isle of Wight Council 19.12
North Somerset Council 18.96
Nottingham City Council 18.43
Herefordshire Council 18.22
Northamptonshire County Council 18.21
Bristol City Council 17.74
Sefton Metropolitan Borough Council 17.70
Bromley London Borough Council 17.17
Cheshire East Council 17.04
Brent London Borough Council 16.90
Oldham Metropolitan Borough Council 16.69
Suffolk County Council 16.23
Slough Borough Council 15.86
Manchester City Council 15.64
Harrow London Borough Council 15.42
Derbyshire County Council 15.30
Cornwall Council 15.15
East Sussex County Council 15.05
Middlesbrough Council 14.94
Hammersmith and Fulham London Borough Council 14.84
Worcestershire County Council 14.57
Local authorities IT spend for FY2017/18
(in £mn)
Cambridgeshire County Council 14.33
Hounslow London Borough Council 14.23
Newham London Borough Council 14.13
Greenwich London Borough Council 13.95
Durham County Council 13.91
Northumberland County Council 13.78
Warwickshire County Council 13.19
Gloucestershire County Council 12.99
Norfolk County Council 12.78
Liverpool City Council 12.40
Wigan Metropolitan Borough Council 12.30
Luton Borough Council 12.29
Cheshire West and Chester 12.08
Central Bedfordshire Council 11.92
Hackney London Borough Council 11.91
Buckinghamshire County Council 11.85
East Riding of Yorkshire Council 11.78
Bexley London Borough Council 11.68
Merton London Borough Council 11.53
Shropshire Council 11.44
Staffordshire County Council 11.43
Plymouth City Council 11.16
Bradford City Council 10.79
North Yorkshire County Council 10.73
Oxfordshire County Council 10.65
Sandwell Metropolitan Borough Council 10.45
Camden London Borough Council 10.43
Bolton Metropolitan Borough Council 10.38
Kingston upon Thames Council 10.21
Dudley Metropolitan Borough Council 10.18
Stoke-on-Trent City Council 10.06
Telford and Wrekin The Borough of 9.89
Kirklees Metropolitan Borough Council 9.75
Wolverhampton City Council 9.66
Waltham Forest London Borough Council 9.56
Barnsley Metropolitan Borough Council 9.34
Lewisham London Borough Council 9.31
Wiltshire Council 9.24
Wandsworth London Borough Council 9.23
Stockport Metropolitan Borough Council 9.19
Islington London Borough Council 9.08
Kensington and Chelsea Council 9.04
Derby City Council 8.93
Coventry City Council 8.89
Wirral Metropolitan Borough Council 8.82
Brighton and Hove City Council 8.65
Swindon Borough Council 8.35
Gateshead Council 8.35
Bedford Borough Council 8.24
Leicester City Council 7.97

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