Agenda item

Pob Aelod Etholedig i gael cyfle i gael hyfforddiant mewn perthynas â'r Ardoll Seilwaith Cymunedol.  

Members were provided with the opportunity to receive training in respect of the Council’s Community Infrastructure Levy (‘CIL’) policy.

The Director of Prosperity & Development advised Members that CIL is a relatively new levy that local authorities in Wales and England can choose to charge on new developments in their area.

Members were informed that CIL can be charged in the following circumstances:-

·         On gross internal floor space per square metre of any new building; or,

·         An extension to an existing building if it has at least 100 square metre gross internal floor space; or,

·         If it involves the creation of a dwelling even when below 100 square metres (including changes of use).

Members were provided with the CIL Charging Schedule and were reminded that the CIL regulations require CIL charges to be index linked to the Building Cost Information Services (BCIS) All-in Tender Price Index.

The Director advised Members that the Council has introduced an instalments policy to spread the payments of the CIL charge. For payments up to £50,000 there will be two instalments: 50% within 90 days of commencement and 50% within 180 days. The instalments increase up to 5 instalments for charges in excess of £1,000,000.

In respect of CIL relief, Members were advised that relief from CIL may be available in a number of specific instances, including:-

·         Charitable Relief;

·         Social Housing Relief;

·         Exceptional Circumstances Relief; (although the Council is not currently offering this relief); and,

·         Exemption for self-build houses

Members were advised that CIL revenue is split, where 80% will go into the CIL pot, 15% to community council (or if no community council, to be spent in that area on local infrastructure) and 5% will be spent on administration costs.

Discussions continued and Councillor Norris sought clarification in respect of the exemption for self-build houses. The Director confirmed that builders will have to apply for the exemption, however, the Council provides assistance throughout the administrative process. Councillor Holmes commented that CIL charges will be passed on from the developer to the buyer by increasing the purchase price. The Director noted that, unfortunately, this has always been the case. However, it was noted that the property market has become more self-policing in recent years.

In respect of the 15% of CIL spending that goes to Community Councils, Councillor Thomas commented that the greater proportion of areas are not being charged. The Director of Prosperity and Development agreed that it is difficult to know how to proceed in areas that don’t have Community Councils. The Director explained that at present, CIL spending is done in consultation with the local area, however, the Director acknowledged that it is problematic in an area where there is no Community Council. Members were advised that Community Councillors get more leave way as to how they spend the CIL money, however, it was emphasised that Community Councillors are encouraged to adapt their own regulation 123 list.  

Discussions continued and Members were referred to the Council’s Regulation 123 list. CIL revenue will be used to support development by funding infrastructure, which can include the provision of roads, schools, flood defences, medical facilities, open spaces, sporting and recreational facilities. It was noted that CIL is not related to the development from which it came, as it is intended to support growth across the development plan area. The Director advised Members that the Council’s regulation 123 list contains a number of education and transportation projects in RCT.

Further discussions ensued and Members were reminded that CIL is mandatory and non-negotiable. Councillor D. Owen-Jones raised a query in respect of the Talbot Green development and noted that the Sainsbury development has received a two year extension. The Director advised the Member that this was approved before CIL came into force. Members were informed that approximately £2 million was raised from Sainsbury’s as a result of the section 106 contribution. The Director emphasised that renewals rely on existing consent and are therefore not liable to pay CIL.

Councillor Cox queried whether regulation 123 list was too restrictive. The Director of Prosperity & Development reminded Members that the regulation 123 list is open to Members to add projects onto the list. The Director confirmed that the list currently includes highways and education, however, further projects could be added on to the list accordingly.

In respect of section 106 contributions, Councillor S. Rees-Owen queried the remit of the Local Authority if the area falls within Zone 1. The Director confirmed that developments in Zone 1 still need to apply and the Authority will decide if it’s acceptable in terms of infrastructure. The Director emphasised that the Authority is still entitled to refuse the application or seek contribution through section 106.

The Voting Elected Parent/ Governor Representative sought clarification in respect of the definition of the word “commencement”.  He also queried the pot of CIL in respect of the Station road development and sought clarification as to whether the CIL money has been earmarked for additional educational resources. In respect of the word “commencement”, the Director advised the Committee that the definition is contained within the Planning Act and is supplemented by the relevant case law. In respect of education, the Director advised Members that the education department would be best equipped to give advice on the CIL money that is available to spend on mitigation.

Discussions continued and Councillor W. Lewis queried whether builders have to pay CIL even when they are providing social housing. The Director informed the Committee that if the builder doesn’t assume liability for CIL, the Authority has to designate normally with the land owner. The land owner will then have the opportunity to apply for an exemption. However, the Director emphasised that if the builder hasn’t applied for the exemption at the outset then they would still have to pay CIL.

 A further query was raised by Councillor Cullwick in respect of the CIL charging Zones. The Member queried whether it is costing builders more to build houses in Pontypridd. The Director advised that in respect of CIL, 100 square metres in Pontypridd could cost a builder an extra £4000. Consequently, it would be less viable to build a house in the Rhondda than in a ward such as Pontyclun. The Director noted that there is a need for the Authority to review its charging schedule.

In respect of community councils, the Chair sought clarification as to which wards do not have community councils and are therefore not receiving 15% of the CIL revenue. The Director noted that the payments to community councils reflect the fact that the CIL legislation was designed to be used by Councils in England.

The Chair also requested information in respect of education projects. The Chair asked if information could be passed to Members in respect of the amount of CIL revenue that is being passed into educational projects. The Director reminded Members that the revenue raised from CIL is not enough to deliver projects on the regulation 123 list. The Director advised Members that CIL can be used to pay off Council debts in order to deliver infrastructure projects throughout the County Borough.

To conclude, the Chair thanked the Director of Prosperity & Development for providing Members with training in respect of the Council’s Community Infrastructure Levy (‘CIL’) policy.

Following discussion, Members RESOLVED:-

1.    To acknowledge the information in respect of Community Infrastructure Levy (‘CIL’); and,

2.    To receive information in respect of the amount of CIL revenue being spent on educational projects via the Graduate Scrutiny Research Officer.