Guidance Note 5: Parishes and Towns

Community Infrastructure Levy (CIL) Guidance Note 5: Parishes and Towns

Updated July 2020

Summary

The Community Infrastructure Levy allows local authorities to raise monies from development for the provision of infrastructure in and around their areas or strategic cross boundary infrastructure projects where several local authorities contribute. A CIL charge is non-negotiable; however, there are exemptions for some types of development such as affordable housing, self-build, self-build extension or annex.

The CIL Regulation requires Chiltern District Council and South Bucks District Council to pass a proportion of CIL receipts collected from developments in their areas directly to Parish or Town Councils to be spent on infrastructure or anything else that is concerned which address the demands that development places on an area.

The District Councils will pass accumulated funds to the parish/town twice a year. The Council will continue to monitor CIL income and to make payments to the Parish Councils, this Guidance will be published and Parish Council Clerks will be informed. The Parish or Village Council will be required to report on receipts and expenditure each year.

Introduction

Amendment Regulations have been passed that require charging authorities to pass a proportion of CIL receipts to Parish or Village Councils from developments that take place in their areas. Councils are required to pass 15% of CIL receipts to relevant Parish Councils arising from developments in their areas. This rises to 25% in areas with an adopted Neighbourhood Development Plan. Previously the Government had indicated only that the sum to be transferred would be a "meaningful proportion" of CIL receipts. To prevent excessive amounts being passed on, the payments to areas without a Neighbourhood Development Plan in place will be capped to £100 per existing council tax dwelling per year. This means that a parish with 500 dwellings cannot receive over £50,000 of CIL receipts per year. Appendix 1 and Appendix 3 set out the maximum amount that can be passed to each parish and town council in the district. Note in areas with a Neighbourhood Development Plan, the amount to be passed over will be 25% with no cap as shown in Appendix 2.

How the funds must be spent?

The amended Regulations state that this proportion of funds must be used 'to support the development of the local area by funding:

a) The provision, improvement, replacement, operation or maintenance of infrastructure; or
b) Anything else that is concerned with addressing the demands that development places on an area

This is a wider definition of what the District Council can use CIL funds (restricted to infrastructure to support the development of the area). These wider spending powers allow the local community to decide what they need to help mitigate the impacts of development, for example the money can be used for open space provision, playgrounds, cycle paths, landscape, planting, etc or they can choose to contribute to larger projects funded by other bodies, such as the District or County Council. Appendix 4 provides a list of the types of infrastructure that Parish Councils can spend their CIL money on.

If a parish council has failed to spend CIL funds passed to it within 5 years of receipt or has applied the funds not in accordance with the CIL Regulations, the District Council can serve a notice on the Parish or Village Council requiring it to repay some or all of the receipts passed onto it. The District Council will be required to spend any recovered funds in the Parish or Village Council's area.

Payment periods

The District Council may come to an agreement with a Parish or Village Council on when CIL funds may be passed to the parish council. Where no agreement is in place, the District Council must make payment in respect of CIL it receives from 1 April to 30 September in any financial year to the parish council by 28 October of that financial year and pay the CIL received from 1 October to 31 March in any financial year by the 28 April of the following financial year.

Chiltern District Council and South Bucks District Council must make payments to the Parish or Town Council for CIL payments received from 1 April to 30 September by the 28 October and CIL payment received from 1 October to 31 March by the 28 April of every year. The Council intends to pass CIL payments to the Parish Councils twice a year.

Reporting

To ensure transparency Parish and Village Councils must publish each year their total CIL receipts; total expenditure; a summary of what the CIL was spent on; and the total amount of receipts retained at the end of the reported year from that year and previous years.

Reports can be combined with reports already produced by parish council and should be placed on their websites. A copy of the report should also be sent to the District Council no later than the end of May of each year. It is our intention to report on CIL through our existing monitoring report AMR, which is produced annually. A reporting template, Appendix 5, has been produced so as to maintain consistency throughout. Please refer to the Council's website for the report template, titled Parish, Town Council Spending Form.

Appendix 1

Chiltern District Council (CDC) - Maximum CIL receipts for Parish or Town Councils without an adopted Neighbourhood Development Plan can receive annually.
Parish or Town CouncilNo of dwellingsMax CIL/annum
Amersham6,528£652,800
Ashley Green Parish Council437£43,700
Chartridge Parish Council697£69,700
Chesham Bois Parish Council1,123£112,300
Cholesbury-cum-St Leonards Parish Council414£41,400
Great Missenden Parish Council4,266£426,600
Little Chalfont Parish Council2,729£272,900
Penn Parish Council1,659£165,900
The Lee Parish Council306£30,600
Chenies Parish Council112£11,200
Chesham Town Council9643£964,300
Coleshill Parish Council240£24,000
Latimer & Ley Hill Parish Council405£40,500
Little Missenden Parish Council2,699£269,900
Seer Green Parish Council938£93,800

 

Appendix 2

Chiltern District Council (CDC) Parish or Town Council with adopted Neighbourhood Development Plan
Parish or Town CouncilMax CIL/annum
Chalfont St PeterNo cap
Chalfont St GilesNo cap

 

Appendix 3

South Bucks District Council - Maximum CIL receipts for Parish or Town Councils without an adopted Neighbourhood Development Plan can receive
Parish or Town CouncilNo of dwellingsMax CIL/annum
Beaconsfield Town council5,164£516,400
Denham Parish Council3,636£363,600
Farnham Parish Council2,576£257,600
Gerrards Cross Town Council3,299£329,900
The Ivers Parish Council4,684£468,400
Taplow Parish Council1,151£151,100
Burnham Parish Council5,053£505,300
Dorney Parish Council314£31,400
Fulmer Parish Council270£27,000
Hedgerly Parish Council368£36,800
Stoke Poges Parish Council1,975£197,500


Source: Chiltern District Council and South Bucks District Council Tax Properties

Appendix 4: 

Examples of Infrastructure items which can be provided or maintained by Parish Councils (not exhaustive)
Infrastructure typeCIL Uses
AllotmentsProvision of allotments
Burial grounds: cemeteries and crematoriaMaintain monuments and memorials
BinsProvision of litter bins
Bus sheltersProvision of bus shelters
Commons and Common pastures

Inclosure, regulation and management and provision of common pastures

Conference facilitiesProvision of conference facilities
Community CentresProvide and equip building for use of clubs (sport/social/educational)
Crime PreventionSpend money on crime prevention
DrainageRepair and maintain public footpaths and bridleways
Lighting for roads and public places
Provide parking places for vehicles, bikes and motorbikes
Provide roadside seats and shelters
Provide certain traffic signs and other notices
Plant trees and maintain roadside verges
Traffic calming-powers to contribute financial to such schemes
HighwaysAcquire and maintain land for open spaces
Open SpaceAcquire and provide buildings for public meetings and assemblies
Public Buildings and Village HallAcquire and provide buildings for public meetings and assemblies
Public ToiletsProvide public toilets (does not include employee wages)
RecreationAcquire land for recreation grounds; public walks; pleasure grounds, manage and control them.
Provision of boating pools.
War MemorialsMaintain, repair, protect and adopt war memorials