Last edited 29 Jan 2021

Strategic infrastructure tariff

Section 106 of the Planning Act 2008 gives ‘charging authorities’ (generally the local planning authority) the power to charge the community infrastructure levy (CIL). It is a charge that local authorities can choose to impose on new developments to fund local infrastructure.

A Community Infrastructure Levy (CIL) review group was established by the government in November 2015, chaired by Liz Peace, former Chief Executive of the British Property Federation (BPF). Its final report was published in February 2017 and recommended the introduction of a non-negotiable low-rate tariff to apply to all developments. This Strategic Infrastructure Tariff (SIT) would be used to fund major infrastructure projects in combined authority areas in a similar way to the Mayoral CIL in London.

The 2017 Autumn Budget statement committed to further consultation.

In March 2018, the Government published a consultation which included a proposal for a SIT that could be introduced by combined authorities and joint committees with strategic planning powers to fund specific strategic infrastructure.

In October 2018, the government confirmed it would take forward a modified proposal to enable combined authorities with strategic planning powers to take forward a SIT, and to encourage groups of charging authorities to use existing powers to more effectively support the delivery of strategic infrastructure by pooling CIL receipts. In the longer term, the government intends to bring forward proposals allowing joint planning committees to charge the tariff, and it will review options for giving other groups the power to levy a tariff. Ref

It is anticipated that the necessary legislation changes will be implemented in 2019.

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