For some considerable time, the Government has been grappling with how to achieve more certainty (and, possibly, more cash) in the process of developers making contributions towards infrastructure improvements.

Some Councils, perhaps most notably Milton Keynes, already operate a tariff-based system (in other words, a set of payments based upon the size of development). That system operates within the existing legislative framework, including the use of Section 106 planning obligations. The Government's previous proposals for "planning gain supplement" have now been consigned to history and what we have coming into force in April 2010 is CIL.

Previously the message from Government has been that CIL will be entirely optional and that Councils can if they wish continue to use the Section 106 planning obligation mechanism. However, the draft CIL regulations which are currently out for consultation contemplate that, for all intents and purposes, Councils will be forced to operate CIL by April 2012.

The consultation period runs until 23 October 2009, the Government will then publish a summary of the responses to consultation on the following website: www.communities.gov.uk. Those responses should be available during January 2010.

Once the regulations are finalised we will see whether a sensible balance will have been struck between the desire to raise finance and the value of preserving potential developments which were at risk of becoming unviable. We should also then know whether the Government is in effect going to make CIL compulsory throughout the country within a relatively short period of time.

If you require any further advice or assistance please contact a member of the Property team at Wortley Byers on 01277 268368.

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