Yesterday’s Budget announcement included the launch of a consultation on the introduction of a strategic infrastructure tariff (SIT) "to help fund or mitigate strategic infrastructure, ensuring existing and new communities can benefit".
The new tariff would be modelled on the London mayor’s Community Infrastructure Levy (CIL), which the government said has raised £381 million since it was introduced in 2012.
In a consultation paper outlining wider reforms to the system of developer contributions, the government said it "recognises the potential for other strategic authorities to have similar powers where they are seeking funding to support a piece of strategic infrastructure, or to address the cumulative impacts that the strategic infrastructure will have".
The paper said the tariff will be available to combined authorities and joint committees and will am to "increase the flexibility of the developer contribution system and encourage cross-boundary planning to support the delivery of strategic infrastructure".
More powers for councils to capture the uplift in land values associated with infrastructure were among a series of recommendations made in a report published by the government's National Infrastructure Commission in July.
Plans for a SIT were also outlined back in March by Chris Poulton, team leader for developer contributions at the Ministry for Housing, Communities and Local Government. Poulton said the proposal was being driven by an increase in the number of councils joining forces to create local plans.