Community Infrastructure Levy and S106

Current position

Milton Keynes Council is unlikely to implement a CIL Charging Schedule regime until at least 2018 so as to allow this change in Planning Obligations Policy to be considered alongside the outcomes of the Council's new Local Plan, Plan:MK. This position however remains under review and will be considered again following the outcome of the Government's current review of CIL. Further information of the Government's review can be found at:  https://www.gov.uk/government/news/ensuring-local-communities-benefit-from-development

In the meantime work is continuing on the update and consolidation of existing SPD's and SPG's into a single Planning Obligations Policy, the draft of which should be released for consultation in June 2016.

Background

Milton Keynes Council will be updating its Supplementary Planning Documents and Guidance Notes (SPDs and SPGs) relating to planning obligations in order to develop a new, single SPD for Section 106 planning obligations, and a Community Infrastructure Levy (CIL).

The Council’s existing S106 supplementary planning documents and guidance notes can be found under related links.

There are several catalysts for this work. Our existing policies are now several years old, and the economic downturn impacted on the viability of development. The biggest push has come from the major changes in the planning obligations regime that have come about through the Community Infrastructure Levy Regulations and the Localism Bill; the scaling back of S106, the tightening of the tests that obligations must meet and the introduction of the CIL.

The Community Infrastructure Levy (CIL)

CIL allows local authorities to raise funds from developers undertaking new building projects in their area. The money can be used to fund a wide range of infrastructure that is needed as a result of development. The charge will be non-negotiable, and will apply to most new buildings, based on a charge per square metre. Levy rates will be set in consultation with local communities and developers and will provide developers with much more certainty ‘up front’ about how much money they will be expected to contribute.

Milton Keynes Tariff

For the expansion areas of Milton Keynes, a tariff regime has operated where developers agreed to a standard contribution of £18,500 per residential dwelling and £260,000 per hectare of commercial land, however following April 2015 the tariff can no longer operate (under the CIL Regulations) for new permissions.

More information about the Milton Keynes Tariff can be found under related links.