The government has published new guidance on the Community Infrastructure Levy to outlaw ‘double dipping’.
Communities secretary Eric Pickles told Estates Gazette in October he would move to outlaw ‘double dipping’, where developers pay twice for planning consent.
The industry had warned that ‘double dipping’ risked stifling development at a time when the government was trying to stimulate growth in the economy. The concern was that developers would end up paying both Section 106 agreements and the Community Infrastructure Levy.
The new guidance clarifies the differences between Section 106 and CIL and tightens up the rules around levy rates.
Liz Peace, chief executive of the British Property Federation welcomed the new guidance. “The updated guidance is a positive step for CIL. Concerns still remain over other sections, particularly exceptions policy, but it is hoped that continued discussions will resolve these issues and finally deliver a CIL that supports development.”
