Infrastructure funding requirements for new developments shifts

In preparation for this change, 16 London Boroughs had adopted and implemented their CIL charging schedule in advance of this deadline. In the week preceding the deadline, a further 10 London councils were in a position where the charging schedule had been adopted and they were only awaiting implementation. Therefore on 6 April, 26 London Boroughs had a CIL charging schedule implemented and ready to use for infrastructure funding.

Planning expert Alexis Coleman of Pinsent Masons, the law firm behind Out-Law.com said, "The 6 April 2015 deadline has clearly had its intended effect in encouraging local planning authorities (at least in London) to adopt CIL charging schedules and move away from funding infrastructure through section 106 planning obligations."

"The mad rush to close out section 106 agreements and get planning permissions issued in March confirms the real fears of many developers and local planning authorities about the effects of these new legal rules," said Marcus Bate, another planning expert at Pinsent Masons. "Exactly the same thing happened three years ago in the month leading up to implementation of the London mayor's CIL Charging Schedule. The result was a lull in planning permissions in the next quarter, followed by a gradual rise back to previous benchmark levels. Expect that trend to be repeated in 2015."

Last week, Ealing council published its Draft Charging Schedule (DCS) and the consultation closes on 8 May 2015. Ealing Council made no modifications to its Preliminary Draft Charging Schedule (PDCS) but has not confirmed when it expects to implement the charging schedule. Hammersmith and Fulham has produced a timeline and hopes to adopt its charging schedule in May 2015 with implementation by autumn 2015.

Several councils, including Westminster, Enfield and Hounslow have started the process of adopting a CIL schedule and are currently at the DCS consultation stage or later but have not indicated when they hope to implement their charging schedule.

Bromley Council is the only London Borough which does not appear to have drafted a PDCS yet but has indicated that it will introduce a charging schedule in 2015.

Local authorities which have not yet adopted a CIL charging schedule will be limited by the new legal restrictions on pooling planning obligations. These restrictions limit the number of planning obligations entered into since 6 April 2010 which are to be used to fund a specific infrastructure project or a general type of infrastructure to five planning obligations. Therefore, no more than five planning obligations for the same project can lawfully be accepted as a reason for granting planning permission.

"Now that the pooling restrictions have taken effect, every charging authority across the country, whether it is charging CIL or not, is limited as to the number of planning obligations it can enter into with respect to certain infrastructure," said Coleman. "Our experience is that many charging authorities have only recently appreciated the full effect of the restriction. As a result, I suspect that the deadline will continue to act as an incentive for charging authorities to press on with adopting CIL charging schedules, as they encounter difficulties with continuing to collect financial contributions for infrastructure."