Consultation on charging schedule regulations has been published

The proposed changes revolve largely around regulating how the receipts raised from the CIL should be spent and aims to include the local community in the decision process, which it is hoped will "change attitudes towards development". 

The consultation also proposes changes to neighbourhood funds; affordable housing, and the Mayoral Development Corporations. 

The consultation states that a "meaningful proportion" of the levy is passed to a locally elected council to give neighbourhoods more control over how the money is spent. 

The rationale behind this is that people are more likely to "accept and support" development where they are satisfied that the community will benefit. 

This will be achieved by specifying that a minimum percentage of receipts from the levy must be passed to the relevant parish, town or community council. An amount is not specified but the consultation acknowledges that it must be enough to "meet the impacts of development". 

To avoid the situation that an unpopulated area benefits from a disproportionate amount of money due to a large development, it is suggested that a per-household cap is introduced. 

The consultation suggests that receipts raised from the levy should be allowed to be spent on affordable housing, which is currently prohibited by the regulations. It asks whether this would "demonstrably better support its provision of affordable housing and better support delivery of local policies". 

It is proposed that the CIL could work in conjunction with 'section106' planning obligations, which are currently the main delivery mechanism for affordable housing. Section 106 of the Town and Country Planning Act allows authorities to ask for measures in 'mitigation' of upheaval caused by developments. By including affordable housing in the regulations as they stand, a limit would be placed on the pooling of section 106 contributions. 

Current CIL regulations place a limit on the pooling of section 106 contributions and rules that local authorities may only enter up to five planning obligations to contribute to a single project or fund. If this were to apply to affordable housing, it is suggested that this could have an unwanted detrimental effect on the delivery of affordable housing.

The consultation seeks views on whether affordable housing should be excluded from the regulation that limits pooling of obligations. 

"The proposals seeking views on allowing CIL to fund affordable housing are particularly welcome," said Richard Ford, an expert in planning law at Pinsent Masons, the law firm behind Out-Law.com "There would need to be an exemption from the restriction on the collective pooling of no more than 5 planning obligations if this was to work properly, but if affordable housing is to be delivered effectively given the widespread viability challenges, the potential for a CIL income boost for affordable housing is likely to be very much welcomed."

The consultation proposes three key changes to Mayoral Development Corporations (MDCs). MDCs are to be set up to drive regeneration in selected areas. The corporation will take on full planning powers for the area, including the ability to impose a levy charge. 

The proposed changes aim to ensure that these 'development areas' are not unfairly disadvantaged as a result of losing their planning powers. The proposed changes largely effect the working of the MDC and how the levy charge is to be collected. 

DCLG has issued the consultation document, the draft CIL regulations and a consultation questionnaire for responses. The consultation opened yesterday and reposes are invited up until the closing date of 30 December 2011.