Communities and Local Government

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• Community Infrastructure Levy: Initial Impact Assessment

Planning, building and the environment

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Summary

To support an increase in economic growth, in particular housing requires increased investment in infrastructure to mitigate the impact of developments and make growing communities sustainable.

The Government believes that the infrastructure needed to support the development of an area should be at least partly funded by owners of land the value of which increases when planning permission is granted for development.

To ensure that local communities are able to obtain the necessary resources to fund infrastructure this initial impact assessment considers the following mechanisms

• Do Nothing: allow the current legislative framework for planning obligations to continue
• Introduce a statutory Community Infrastructure Levy
• Introduce a Planning-gain Supplement

The Government's preferred option is to introduce the Community Infrastructure Levy, which will help to harness the value of an increased range of planning permissions to generate additional infrastructure funding and thereby unlock housing growth.

The details of the proposal are subject to consultation with stakeholders and will be set out in secondary legislation. A further fully costed impact assessment will be carried out as the details are settled.

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• Community Infrastructure Levy: Initial Impact Assessment
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