Housing and Planning Minister Caroline Flint has announced further details of the Government's plans for a groundbreaking Community Infrastructure Levy (CIL), which will support local communities by raising funding for new schools, hospitals, transport schemes, libraries, parks and leisure centres.

CIL will be in addition to Government funding and will empower local authorities to better support and unlock growth by levying a charge to help deliver the infrastructure needed to support the development of their area - helping to create more attractive places to live and work.

CIL will be discretionary for local authorities, increasing their flexibility to shape their communities and support growth. Crucially, the levy will also offer greater certainty to industry because charges will be consulted on, independently examined, and published in a local charging schedule. This will provide a step change from the existing system of lengthy negotiated agreements, creating transparency, fairness and certainty for the development industry, and ensuring that CIL levels stimulate, rather than choke development.


The Government will invite further views on the design of the levy through public consultation later this year. Today's announcement sets out important strands of policy, following discussions between Caroline Flint, developers and local government.

As a result of the progress made in developing a locally-led approach to funding sub-regional infrastructure, the Government has decided that the powers for Welsh Ministers and the Secretary of State to charge CIL are no longer required.

Ms Flint said: "Almost all development creates some need for infrastructure and services so it is only right that development contributes a fair share alongside the billions of pounds of investment the Government is putting in.

"CIL will provide vital additional funding for the new infrastructure our communities need, helping them to grow in a sustainable way.

"Developers need as much certainty as possible given the current challenges they face from the international credit crunch, which is why I have been working closely with the industry and local government to ensure that CIL will deliver what is needed whilst giving more certainty and confidence compared to the current system."

(CD/JM)