The Institution of Civil Engineers (ICE) has warned that revisions to the Community Infrastructure Levy (CIL) in the Localism Bill could jeopardise the delivery of important infrastructure such as transport and waste systems.
The Localism Bill had its second reading in the Lords yesterday (Tuesday 7th June).
The ICE has published an updated briefing raising concerns about changes to the levy, which was originally intended to secure developer contributions towards the provision and improvement of local infrastructure.
The ICE says that CIL money – which could amount to £1bn a year - should go only on infrastructure capital works, as intended. However, other vested interests are getting revisions in that could see money diverted to local community groups to spend on their own organisations.
Local government minister Greg Clarke has previously said that this would allow a ‘meaningful proportion’ of the CIL to go directly to the neighbourhood in which it was raised (and help smooth over any local objections to development) but the ICE says this could lead to very local priorities overriding the need for essential infrastructure, such as transport networks, that would benefit a wider section of society.
With local authorities facing reduced budgets, the CIL will become an increasingly important mechanism for funding new infrastructure, the ICE says, and opening it up for other purposes would undermine its primary function.
Chair of the ICE’s localism panel Geoff French said: “Due to a history of under-investment many of our local networks are in urgent need of upgrading or replacement. It has been estimated that the CIL could raise around £1bn per year in future, and we strongly believe this important funding stream must be protected solely for the provision of essential infrastructure that underpins economic growth, both locally and nationally.”
ICE has previously called for strengthening and clarity of the Duty to Cooperate clause to ensure that ‘larger than local’ infrastructure was planned and delivered properly. An amended clause was produced at Report stage that addressed these issues.
Mr French added: “ICE is very pleased that government recognised our initial concerns about the ‘Duty to Cooperate’ and we hope that it will now also take the important issue of the CIL into consideration as the Bill progresses through parliament.”
ICE also remains concerned about the introduction of local referendums, which could pose questions for infrastructure development if organised community groups are able to oppose certain types developments even before planning proposals have been made.
The ICE’s Localism Bill briefing here can be seen by clicking here.
For the ICE’s more detailed briefing on the Community Infrastructure Levy, click here.
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