Spending CIL
The Community Infrastructure Levy (CIL) regulations define how CIL can be spent and by whom, it is divided into 3 'pots'.
Strategic portion of CIL
70% - 80% depending on the extent of the non-strategic proportion
This portion of the CIL income received will be spent on strategic infrastructure to support development across the borough. To indicate what sort of items this could be spent on S.216 (2) of the Planning Act 2008 states that infrastructure includes:
- roads and other transport facilities
- flood defences
- schools and other educational facilities
- medical facilities
- sporting and recreational facilities
- open spaces
We can update or amend this list as part of the annual infrastructure funding statement which includes monitoring of collecting and spending CIL. Strategic CIL can be spent on infrastructure projects anywhere within or outside the borough. We will report annually on CIL receipts and expenditure through the statement.
We are looking for infrastructure providers/organisations in the borough who have an infrastructure project requiring additional funding which might be eligible for CIL funding. If you have an infrastructure project needing funding and for more information on project eligibility and how to submit your bid can be found on our CIL Bidding Prospectus 2022-2025 webpage.
We publish an Infrastructure Delivery Plan (IDP) and Infrastructure Funding Statement (IFS) on an annual basis. These should be the starting point for seeing the types of schemes likely to be considered for funding, although the list is not exhaustive and bids from projects not currently in the IDP may still be considered. Submitting a bid does not guarantee allocation of CIL funds.
Non-strategic portion of CIL
15% or 25%
An amount of CIL can be spent locally, either 15% or 25% to provide infrastructure in the local community. This percentage is taken from the CIL receipt of money, secured from CIL liable developments in the local area. Money is allocated on a parish basis and where no parish exists, by neighbourhood forum area, parish meetings or residents association subject to it having a ‘made’ plan and then by ward.
For parish councils with no made neighbourhood plan, the 10% difference in CIL money will go to the CIL strategic portion. The funds collected will be spent wholly or to partly fund strategic infrastructure types and/or projects to support development across the borough.
The regulations state that in England, parish and town councils must be passed the neighbourhood portion of CIL. In Maidstone there are only parish councils and no town councils. In areas where no parish council exists, CIL will be allocated to the local area but it will be retained by the council to spend on behalf of the area, in consultation with the community.
An area with a made neighbourhood plan in place is allocated 25% and those without a made neighbourhood plan are allocated 15% which is capped at £100 per Council Tax paying dwelling within that parish per year.
Parish councils
Subject to having appropriate governance procedures in place, parish councils can receive 15% of the CIL funds which have been gained from development in their parish, which are capped at £100 per Council Tax paying dwelling per year. Or 25% if they have a ‘made’ neighbourhood plan in place. Funds are passed to parish councils twice a year; on 28 April and on 28 October. Parish councils do not have to accept receipt of CIL money and can ask the council to administer it on their behalf. More details are on the neighbourhood spend webpage.
When money is passed to the parish it has autonomy on how to spend this part of the levy subject to it being spent on infrastructure as defined in the regulations. In return the parish council must produce and publish on their website, and send to the council an annual financial report to demonstrate how the CIL was spent in accordance with the legislative requirements.
Non-parished areas
For areas which have a plan but no parish e.g. a neighbourhood forum area, the borough council will allocate 25% to the area but will retain the money and spend it in consultation with the forum and the community. There may be potential for forums to access funds directly but this will be agreed on an individual basis.
For areas which do not have a parish council or a neighbourhood forum 15% will be allocated to the ward capped at £100 per Council Tax paying dwelling and spent by the borough council in consultation with the community. The regulations require the borough council to engage with the community where the development has taken place and agree with them how to spend the proportion of CIL. This consultation will be in proportion to the amount of CIL received.
| Parish council | Neighbourhood plan | Levy |
|---|---|---|
| Yes | Yes | 25% uncapped, paid to parish |
| Yes | No | 15% capped at £100/dwelling, paid to parish |
| No | Yes | 25% uncapped, local authority consults with community |
| No | No | 15% capped at £100/dwelling, local authority consults with community |
Administrative costs
Up to 5% of CIL can be spent on the administration and enforcement of CIL, for example the salaries of the team responsible for processing and managing CIL and the software systems used to record, monitor and report on the CIL.
For further information please contact us.