Government consults again on developer contribution changes

Draft regulations required to enact the government's planned changes to the developer contributions system, including the removal of restrictions on pooling section 106 contributions, have been published for consultation.

Infrastructure: strategic infrastructure tariff included in consultation
Infrastructure: strategic infrastructure tariff included in consultation

In October, the Ministry of Housing, Communities and Local Government (MHCLG) published its response to a consultation in March on making changes to the system of developer contributions with the aim of boosting housebuilding.

Among the key points in the response, the government said it would:

  • enable combined authorities with strategic planning powers to take forward a strategic infrastructure tariff
  • lift the pooling restrictions on section 106 contributions in all areas
  • introduce new "infrastructure funding statements", in which councils publish details on what section 106 planning gain and community infrastructure levy has been collected and spent, so communities understand the benefit of development
  • removing restrictions that prevent councils using section 106 money to contribute towards infrastructure itemised on their "regulation 123 lists", which outline the items they intend to fund through CIL
  • changes to indexation of CIL rates, proposing that rates for residential development are linked to the house price index and rates for non-residential development linked to the consumer price index
  • take forward proposals to allow local authorities to seek a fee from applicants towards monitoring planning obligations

The ministry said it would consult on draft regulations to put the revised arrangements in place.

The draft legislation amending the Community Infrastructure Levy Regulations 2010 has now been published.

The document says that its purpose "is to ensure that the draft regulations deliver the intended policy changes and do not give rise to unforeseen consequences".

Housing minister Kit Malthouse said: "Communities and developers must know that vital infrastructure needed to support new homes is going to arrive - even before a shovel hits the ground.

"The billions of pounds already paid by developers has been critical in delivering the more, better, faster homes this country so desperately needs, but we must go further.

"These reforms will make the system simpler, transparent and easy to understand and will accelerate the pace of homebuilding – it’s now up to housebuilders and residents to tell us what they think."

The consultation runs until 31 January 2019.

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