Community Infrastructure Levy
Over the last few months, you may have heard of something new called the Community Infrastructure Levy (CIL) which is intended to provide funding from developers for District and Parish Councils to spend on improving infrastructure within the area. As a result of the recent implementation of CIL the community needs to make some decisions on where we would like any available funds to be spent, and the first step is to establish a Parish Infrastructure Investment Plan.
In order to provide some technical background, we have created some questions and answers which will hopefully help you to understand why we are undertaking this consultation.
Q: How is CIL charged and the funds distributed?
CIL is charged in our area by Mid Suffolk District Council (MSDC) on the internal floor area of new build properties. A portion of CIL income amounting to 15% of the levy (now 25% following the adoption of the Neighbourhood Plan) is paid to the Parish Council to be spent on offsetting the impact of development in the area. The remaining income is retained and spent by MSDC. Whilst the amount received by the Parish Council is intended to be spent within the parish, the amount retained by the District Council can be spent anywhere across Mid Suffolk. Parish Councils and individual organisations can make formal application to MSDC to fund specific infrastructure spending projects from MSDC’s “pot”.
Q: How much will Botesdale Parish Council receive in CIL funds?
It is difficult to forecast how much and when the Parish Council will receive in CIL funds. However, we have estimated around £188,000 from currently deliverable developments.
Q: How can the Parish Council spend CIL income?
Subject to certain restrictions, the Parish Council can spend its portion of CIL on a wide variety of infrastructure projects. Examples include, but are not limited to, the provision, improvement or maintenance of: recreational and educational facilities, community centres, crime prevention measures, drainage and highways.
Q: How can the District Council spend CIL income?
MSDC publishes a list of the type infrastructure projects that may be wholly or partly funded by the CIL. Examples include public transport improvements and the provision of leisure and community facilities.
Given the limited nature of the Parish Council’s share of CIL, large infrastructure projects would most likely be financed from MSDC funds rather than Parish Council funds (or potentially a mix of both).
Q: What is a Parish Infrastructure Investment Plan? (PIIP)
A Parish Infrastructure Investment Plan is a document which identifies and prioritises the infrastructure needs of the community. It is used as the basis for informed spending decisions either by the Parish Council or by MSDC. In creating the PIIP, sources of funding are not entirely relevant. It is more important to independently identify those areas of infrastructure on which we would like to spend money; the funding is a secondary issue, albeit an important one.
The PIIP is also intended to provide transparency to the community. Once completed, it will be available to all residents of the village through the website and will explain where local investment is likely to be targeted. The PIIP will be filed with the Babergh and Mid Suffolk Infrastructure team, who are responsible at district level for the allocation of funds.