Govt calls for Community Infrastructure Levy reduction

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Developers building affordable housing would pay a "significantly reduced rate" of Community Infrastructure Levy, under proposals outlined by communities minister Baroness Andrews.

Speaking in a House of Lords planning bill debate, Baroness Andrews gave a "firm commitment" that the Government would investigate ways of introducing rules that would stipulate a smaller CIL was charged in cases where affordable housing was being built.

She said: "We will explore with the social housing sector how a significantly reduced rate of CIL could be specified in regulations for affordable housing development – indeed, I can tell the House that discussions have already started."

The CIL – which is set to be introduced next year – is a standard charge levied on new developments to fund local infrastructure, such as roads, flood defences, medical facilities, open spaces and schools.

Earlier this month, the Government has scrapped controversial plans to peg the new community infrastructure levy to the cost of land for new developments.

Under pressure from a lobby group comprising the Home Builders Federation, the British Property Federation and London First, ministers agreed to table a series of amendments to the Planning Bill which will mean the CIL is set according to the needs of the local community rather than the value of land.