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18.07.11

Debate over the future of the Community Infrastructure Levy

The British Property Foundation is lobbying against “desperate and crude” proposed changes to the Localism Bill to extend the scope of the Community Infrastructure Levy (CIL) from development to the vaguer ‘supporting communities’.

Liz Peace, chief executive of the Federation, said: “We are delighted that ministers intend to reflect on the proper working of CIL rather than making decisions in haste.

“However, we would urge them to appreciate that if CIL is diverted away from vital investment in new infrastructure then this will undermine the ability of authorities to deliver development and will compromise economic growth.

“It could also make communities more hostile to development – not less, as Government seems to hope.

“Concerns around new development are usually around the impact on local services and the need for new roads, schools and hospitals. Taking money away from this necessary investment will be seen for what it is – a desperate and crude attempt to divert CIL funds to plug a hole in the funding of public services.”

The BPF said the CIL is predicted to raise £6bn over the next decade, and that it should be safeguarded to be spent on infrastructure.

The House of Lords debate on this issue is here: www.publications.parliament.uk/pa/ld201011/ldhansrd/text/110712-0001.htm#11071278000696

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