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Community Infrastructure Levy (CIL) - Neighbourhood Portion (NCIL)

1. MVDC CIL charging structure

CIL is a planning charge, introduced by Central Government – the Department for Communities and Local Government (DCLG) - as a tool for Local Planning Authorities (LPA) in England and Wales to help deliver infrastructure to support the development of their area. New development will be liable for a charge under the CIL, when the LPA has chosen to set a charge in its area. CIL is strictly tariff and replaces the previously negotiated arrangements that were in place.

MVDC, our LPA, introduced CIL charging on 1st January 2017. As far as Bookham is concerned the rate set is £175 per square metre of new housing development.

To get an estimate of what revenue this may generate as a result of developments in Bookham we need to make some assumptions.

In the 10 year period from April 2001 to March 2011 there were 197 net (after taking off demolitions) new dwellings completed in Bookham, an average of approximately 20 per year. In the period from April 2011 to December 2015 the net gains completed were 85, an average of approximately 18 per year. At January 2016 there were 19 new dwellings under construction, excluding the major Middlemead Affordable Housing redevelopment, and there were sites with planning applications granted but not yet started for a further 45 dwellings.

The average size of all these dwellings is approximately 100 square metres.

Going forward, assuming a conservative estimate of 15 net new dwellings per year, this would generate
100 x £175 per dwelling = £17,500

So for 15 dwellings this means £262,500 of CIL each year from development that takes place in Bookham.

2. What is the neighbourhood portion of the Community Infrastructure Levy?

Communities that draw up a Neighbourhood Development Plan (NDP), and secure the consent of local people in a referendum, will benefit from 25% of the revenues arising from the development that takes place in their area.

This is quite different from the previous situation under which infrastructure revenues collected by MVDC as a result of development in Bookham could be spent anywhere the Council chose.

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SO, if Bookham voters support the NDP in the referendum in May, using the assumptions in 1 above, then £262,500 x 25% = £65,625 each year would be available to be spent specifically in Bookham.

What is CIL?

The Community Infrastructure Levy (CIL) is a charge that local authorities can set on new developments in their area. It has been introduced as a way of raising funds for infrastructure, facilities and services

For example; transport improvements, schools and other improvements needed to support new businesses and homes in the area.

CIL is charged to the developer and the monies collected by Mole Valley District Council.  The charge is worked out on the size of the property or properties being built on a square metre basis.

Full details of Mole Valley's CIL charging structure, exemptions and definitions are set out on their CIL Charging Schedule webpage.

The main benefit of CIL for Bookham is that, IF the NDP is voted for and a NDP is in place, Mole Valley will put aside 25% of the CIL monies from development in Bookham for use in Bookham.  Mole Valley will decide in consultation with appropriate local bodies what the monies should be spent on.