The property industry has welcomed new statutory guidance on the Community Infrastructure Levy (CIL) which ends ‘double dipping’, where developers pay twice for community facilities in return for gaining planning consent.

The British Property Federation had warned ‘double dipping’ risked stifling development at precisely the time Government was introducing a raft of other measures to spur development to aid the economy.

S106 agreements, where local authorities seek cash contributions from developers to fund infrastructure, were supposed to be scaled back and replaced by CIL. However the BPF raised concerns with Government that CIL was being viewed as an additional tax on development.

The BPF say is has worked closely with CLG officials to create the new guidance, which will clarify the differences between the Levy and Section 106 planning obligations, ensuring that there is no ‘double dipping’ and:

Ensure that the evidence base used to assess the Levy rate or rates is robust
Ensure that the guidance reflects the publication of the National Planning Policy Framework
Provide guidance on the 2012 amendment regulations, which improve the operation of the Levy.
The Federation has also joined with developers in supporting Planning Minister Nick Boles’ commitment to consider extending the charging schedule deadline beyond 2014, a move which would provide necessary relief for the industry.

Liz Peace, chief executive of the British Property Federation, said: “The updated guidance is a positive step for CIL and a reflection of our close involvement with CLG to ensure that the Levy is applied effectively.

“Concerns still remain over other sections, particularly exceptions policy, payment in kind and regulation 40, but it is hoped that continued discussions will resolve these issues and finally deliver a CIL that supports development.”