CIL & Section 106 Explained

Community Infrastructure Levy (CIL)

CIL is a fixed charge on development based on the type and size of development and the charging authority's published rates. It funds infrastructure to support the development of an area. Not all LPAs have adopted CIL.

Key points: CIL is calculated per square metre of net additional floorspace. Self-build and affordable housing are exempt (claim required). Social housing relief is available. The CIL Additional Information Form must be submitted with the application.

Section 106 Agreements

Section 106 agreements (planning obligations) are legal agreements between the LPA, developer and landowner to secure planning obligations that cannot be dealt with by condition. They must meet three tests: necessary to make the development acceptable, directly related to the development, and fairly and reasonably related in scale and kind.

Common obligations: Affordable housing provision, education contributions, highway improvements, public open space, ecological mitigation, travel plans, and training/employment initiatives.

Viability

If a scheme cannot viably deliver the full policy requirement (including affordable housing and s106), a financial viability assessment may be submitted. Viability assessments should be open, transparent and use standard inputs per the PPG. LPAs will typically have the assessment independently reviewed at the applicant's cost.

CIL vs S106

Both can apply to the same development. CIL is non-negotiable (set rate), while s106 is negotiated. Since 2019, s106 pooling restrictions have been removed, but s106 obligations must still meet the three tests.

Related Topics: Affordable Housing, Viability, Planning Obligations