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New powers for councils to help communities thrive

The new system will give developers certainty over the contributions they have to make to support local communities when they plan projects, ensuring that developers pay a fair share towards new local services that are needed. The regulations allow councils to potentially raise an extra £700million a year, where councils choose to use the new power.

Healey said: "The new levy will be a big improvement to the existing system. It puts an end to site by site deals, which can be lengthy and uncertain. Many councils don’t get the contribution to new infrastructure their area needs at present. CIL will bring improved transparencies for communities who will know what infrastructure is needed and how it will be funded, and fairness and predictability for developers."

The new system heralds the end for unpredictable charges attached to planning permissions. From April, Section 106 agreements will only be permitted if they are directly related to the new developments. By 2014 Section 106 agreements will be scaled back further to ensure they operate effectively alongside CIL.

Healey said: "The case for this change is strong as under the current system only one in 16 (6%) of all planning permissions bring any contribution to the cost of supporting infrastructure, when even small developments can create a need for new services. In the future, all but the very smallest developments will contribute towards coping with the extra pressure put on services."

CIL will enable councils to make sure all new building projects pay a fair share towards coping with the extra pressure on services brought about by new development, ensuring those who benefit financially when a planning application is approved give something back to the local community by funding local infrastructure.

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