The Milton Keynes ‘Tariff’ and the Community Infrastructure Levy

Covid-19 Update: At this time requests regarding the availability and release of developer contributions to projects will be progressed as normal.  However the actual release of funds to agreed projects may be delayed depending on delivery timescales as all non-essential funding release has to be confirmed through a separate authorisation process at this current time.

In 2007 a tariff-based system of infrastructure funding was agreed in the ‘expansion areas’ of Milton Keynes (i.e. the Western Expansion Area [now Fairfield and Whitehouse], the Eastern Expansion Area [Broughton Gate and Brooklands], Tattenhoe Park, Kingsmead South, and parts of the Strategic Land Allocation [Eagle Farm and Glebe Farm]).  The Tariff secured a commitment from landowners and developers within these areas (where up to 15,000 homes were planned) to Section 106 contributions in excess of £310m (at 2007 values), based on a standard tariff charged for each home and/ or each square metre of employment floor space.

It is a unique, Treasury backed approach to infrastructure delivery, which secured £30m of forward funding for the delivery of roads, education, health, community services, parks and attracting inward investment, amongst a range of projects.

The Tariff programme is now closed to any new developments signing up to it.  The annual programme for delivery is set out in the Councils Capital Programme.

The Community Infrastructure Levy

The Community Infrastructure Levy (CIL) is the Government’s preferred mechanism for funding strategic infrastructure investment from development.  It is similar to the Milton Keynes Tariff in the sense that it levies a single charge per metre of new development towards infrastructure.  For more details on the principles that sit behind CIL please see the Government's guide.

Currently Milton Keynes Council does not operate a CIL but will review whether this is an option in future to support delivery of the next Local Plan.

Next section - Monitoring Section 106 Agreements and Dealing with Developer Contributions

 

Last Updated: 6 April 2020