Guidance on the Community Infrastructure Levy (CIL) has been issued, intending to clarify its relationship with other types of developer funding such as Section 106.
The Department for Communities and Local Government has forbidden councils from ‘double charging’ developers by applying both charges.
Ministers say the revised guidance will ensure a ‘robust evidence base’ is used for assessing levy rates and remind councils there is no obligation to charge the levy at all.
It is hoped the additional advice will improve the way the levy operates. Officials said the move was taken to reflect reforms made to the planning system and to provide clarity about the relationship between the levy and Section 106 planning obligations.
Planning minister, Nick Boles, said: ‘Government has worked actively with councils and developers to get this guidance right and make clear how we expect the levy to work.
‘The guidance ensures that councils who have already adopted their levy will not need to do anything new and only councils developing levy rates will need to consider this new guidance.’
Ministers are also said to be considering moving the 2014 date when councils will be limited in their use of pooled Section 106 planning obligations for infrastructure that can be funded by the levy. The government expects to consult on further regulatory changes in the new year.
According to the DCLG, the CIL has the potential to raise an estimated £1bn a year of funding by 2016 to support growth locally.
