Contact Officer: Michael Crofton Briggs (Head of City Development), 01865 252360, mcrofton-briggs@oxford.gov.uk

The Head of City Development submitted a report (previously circulated, now appended) concerning the draft charging schedule for the Community Infrastructure Levy (CIL)

Michael Crofton Briggs (Head of City Development) attended the meeting and presented the report and its background to the Committee. He explained that this was a tax payable by every developer, and that the money would return to the City Council as the planning authority. It would agree with Oxfordshire County Council what the priorities were for its use. The CIL is paid when development starts on site, and it may be in the form of staged payments.

It is expected that the CIL would come before Council for formal adoption in (approximately) October 2013.

The Committee received the following additional information in response to its questions and comments:-

Infrastructure Project list

The Council has examined its Core Strategy and asked what infrastructure would be needed to support development. The project list is an initial snapshot of development that will take place over a long period of time. It is intended that a priority infrastructure list (a“1,2,3” list), would be prepared annually for members’ approval.  It was likely that CIL discussions would track the Budget cycle.

Levy on industrial development

It is believed that industrial developments are capable of bearing the CIL at the suggested rate of £20. Some other local authorities have decided not to levy the CIL on some developments, but by doing so they run the risk of slipping into the area of state aid, which is not permitted. The Council believes that the level of CIL that it has chosen will not discourage development.

Flexibility

There is no flexibility in the system. The CIL proposed is set at a level which it is believed can be met by all developers.

There are 2 exemptions: for charities or developments for charitable purposes, and for affordable housing.

Difference from S106 money

It should be noted that the CIL is a different approach to developer funding. Under S106, there was a correlation between a development and its impact on services around it. With the CIL, there does not have to be a geographical link. It is possible to create a fund that will pay for things across the whole City as and when they are needed. It is not possible to say how much the CIL will raise as it is new. It may be that the priorities for CIL funding will be significant pieces of City infrastructure.

Cost of introducing the CIL

It is expected that there will not be any additional pressure on resources created by the introduction of the CIL. The Council can, in any case, use up to 5% of the money raised to cover the cost of administering it.

Involvement of Councillors and local communities

It was intended that Members would have good involvement with discussions about the use of the CIL. It should also be noted that there would be circumstances in which 25% of the CIL is returned to the community that has taken the impact of a development, perhaps via a Parish council.  Communities will have a part to play in discussions about spending the CIL./

Committee comments

The Committee noted the introduction of the CIL. It felt that it was extremely important that Councillors be involved with discussions about the spending of the CIL, particularly Councillors who represented deprived wards. The Scrutiny Committee itself would welcome involvement as appropriate. It was also interested to know more about any protocols for Parish Councils spending CIL funding.

Resolved:

(1)   To note all information provided;

(2)   To ask that Committee views be included as part of the consultation process.