Agenda item

The Council received a presentation on a report which sought approval for proposals for a Community Infrastructure Levy for Newport to be submitted to the Planning Inspectorate for independent examination. 

It was explained that the Community Infrastructure Levy (CIL) was a new charging mechanism for securing contributions from developers.  It is a levy that will apply to certain types of new development. 

The Council would need to identify the total cost of infrastructure it wishes to fund (wholly or partly) through the levy. In doing so, it must consider what additional infrastructure is needed to support development, and what other sources of funding are available. As such, evidence of a ‘funding gap’ must be demonstrated to justify a CIL.

Infrastructure needs and associated costs will be identified in an Infrastructure Plan (known as a Regulation 123 List), alongside known site-specific S106 items.

CIL will provide a ‘contribution’ towards the overall provision, improvement, replacement, operation and maintenance of ‘city-wide’ projects or ‘types’ of infrastructure (that support the LDP). Examples include roads and transport facilities, flood defences, educational facilities, sporting and recreational facilities, open spaces that are required to support development in the LDP. Whilst core public funding will fund most infrastructure, CIL will provide ‘additional’ funding. The Regulation 123 List will be continually reviewed to reflect corporate priorities

The CIL rates will be set out in a Charging Schedule and therefore developers will know exactly what they will be expected to pay. 

Members were informed that the CIL rates, once set, are effectively non-negotiable; therefore lengthy negotiations over planning contributions between the local planning authority and developers are expected to decrease.  Section 106 contributions for affordable housing and other site specific infrastructure will still be sought.

In setting the CIL rates, the Council must submit its proposals and evidence to the Planning Inspectorate to undergo independent examination. Proposed CIL rates were set out in detail in the report for consideration by members.

Following questions from Councillor Whitcutt, members were informed that it was very difficult to make an accurate assessment of income from continuing Section 106 agreements as this would depend on smaller schemes coming forward .The estimated £8.4 m income from CiL was a cumulative total to 2026.

It was explained to Councillor Chris Evans that the school on the Alcan development had been justified by the scope of the development. The cabinet member for Education and Young People confirmed that all Newport Schools are available to all Newport schoolchildren

Councillor Williams was concerned that the CIL levy would effectively be a rise in house price as the costs would fall to house purchasers and that remediation costs could result in developers shying away from development in Newport. He asked for the level of CiL to be kept under review. Councillor Mogford was also concerned this would be a tax on house purchasers

In response to Councillor Watkins, the Monitoring Officer confirmed that the contributions under CIL will be pooled for the purpose of the Section 123 list and to serve the whole of Newport.

Councillor Hannon supported the proposals saying that this would be an equitable way of raising funds for improvements as a result of investment in community infrastructure. The CiL would not stop development and it would provide an opportunity for the Local Authority to provide necessary infrastructure.

Councillor Richards supported the proposals in the report stating that all of the enquiries were addressed in the report.

Resolved

To approve the following documents, as presented, for submission to the Planning Inspectorate for independent examination

a) The Newport Draft CIL Changing Schedule

b) Draft Charging Schedule – Report of Consultation

c) Draft Infrastructure Development Plan & Infrastructure/Regulation 123 List