The Community Infrastructure Levy (CIL) is a charge that local authorities in England and Wales can impose on new developments to fund infrastructure projects like roads, schools, and green spaces. Introduced in 2010 under the Planning Act 2008, CIL aims to create a fairer and more transparent system for funding local infrastructure. But while it has clear advantages, it also brings challenges for both developers and communities.

One of CIL’s biggest advantages is that it provides a clear, fixed tariff based on the size and type of development. Unlike Section 106 agreements, which are negotiated on a case-by-case basis, CIL offers developers more certainty about costs, allowing for better financial planning. Section 106 agreements often involve lengthy negotiations, which slow down development. CIL simplifies this by applying fixed charges spread fairly across new developments, reducing delays and making it easier to secure funding for infrastructure improvements.

A portion of CIL funds (usually between 15 per cent and 25 per cent) is allocated directly to the community where the development takes place. This empowers local councils and neighbourhood groups to decide how to spend the money, ensuring that projects reflect local priorities. Witley and Milford Parish Council, for example, have managed this very effectively.

But we’re talking about the planning system here, which is far from perfect. One of the biggest criticisms of CIL is that it significantly increases development costs. This is particularly challenging for smaller developers who may struggle to afford the levy, potentially reducing the number of new homes being built.

CIL is not mandatory, and local authorities set their own rates based on viability assessments. This has led to uneven application, where wealthier areas impose higher charges while poorer regions struggle to raise enough funds for infrastructure. Interestingly, Waverley ranks second in the UK for the highest CIL charges.

While self-builders, residential annexes, and smaller home extensions are exempt from CIL payments, in Waverley applicants must complete the necessary paperwork to secure this exemption. Unfortunately, paperwork errors or residents being unaware of available exemptions have led to some residents unexpectedly facing CIL charges and enforcement action. One case in Waverley faced an unexpected £70,000 CIL charge, with no right of appeal.

While CIL contributes to infrastructure improvements, it may not generate enough revenue for large projects such as new railway lines or road upgrades. So, councils still rely on additional funding sources, including Section 106 agreements.

While CIL offers transparency and reduces negotiation delays, its cost burden on developers, regional disparities, and administrative challenges highlight areas for improvement. I’m grateful to our Conservative Group in Waverley for bringing this to Full Council in January 2025 to successfully pass the motion to review how CIL is implemented and the charging schedule. Here, at least, we’re making steps in the right direction.

The next challenge is to understand why, in Waverley, £29m of CIL has been collected since 2019 — yet £12m remains unspent in a bank account.

By Cllr Phoebe Sullivan