Time running out for Section 106 Off-Site Contributions
SECTION 106 and the COMMUNITY INFRASTRUCTURE LEVY
The 6th of April 2015 is fast approaching for a key change to the planning system, introduced by the Community Infrastructure Levy Regulations 2010 (as amended) (“CIL”), to take effect.
The key issue of the new CIL regime is the restriction on the pooling of planning obligations relating to specific pieces or types of infrastructure. The date on which that prohibition will take effect is 6 April 2015.
What will the new Section 106 and CIL changes mean for you?
Reg 123 of CIL amended in Feb 2014 states “limitations on pooling for infrastructure begins from all obligations collected since the 6th April 2010”.
From April 2015 you will only be able to pool S106 on a very limited basis. This prohibition may severely curtail the ability of local planning authorities that have not imposed charging schedules to ensure that proposed developments could be granted consent subject to the payment of financial contributions considered necessary to make the development acceptable for planning purposes. Recent projections show only one in four local planning authorities will have implemented a charging schedule by the cut-off date.
There is a real concern that the remaining three quarters of local planning authorities will not be in a position to secure appropriate planning obligations from developers in their area and as a consequence the determination of applications in those areas may be significantly delayed.
The regular amendments that have been made to the CIL Regulations strongly indicate that the present Government has no intention to discard the CIL regime.