Agenda item

Members of the Sub-Committee will be advised of the results of the Arun CIL Draft Charging Schedule consultation summarising representations. This will include whether any modifications are required and to seek consent to submit the Draft Charging Schedule for examination.

            As the membership of the Subcommittee had significantly changed since the election of the new administration, the Planning Policy Team Leader gave a brief presentation to introduce Members to the process and advised that the preparation of a CIL (Community Infrastructure Levy) Charging Schedule was justified due to the infrastructure funding gap which had been identified to support the delivery of the Arun Local Plan.

            It was explained that the Arun CIL Draft Charging Schedule had been subject to public consultation from 21 March 2019 to 2 May 2019 and the report before Members set out a summary of the representations received to that consultation, together with a schedule of modifications that were required and the reasons.  Agreement was being sought to submit the Draft Charging Schedule to the independent Examiner in accordance with Regulation 19 of the CIL Regulations 2010 (as amended).  In addition, the Director of Place had suggested that, for the purpose of clarification, the following amendment be made to the Proposed Statement of Modifications – Modification No. 21 (page 65 of the Agenda, page 7 of the Statement of Modifications) as follows:-

            [1] Residential does not include residential institutions, including purpose built student accommodation.  [ADD] Neither does it include development which is covered by a condition that limits it to holiday use only.  Where this condition is not applied to static caravans or holiday rental units, these should be considered to be in residential use, or have the potential to be used for residential use.

In the course of a full debate, within which it was acknowledged that this was an extremely complex subject, Members sought clarification on a number of issues, which included:-

·         Payment of a proportion of CIL receipts levied within Towns and Parishes for use in that Town and Parish area – confirmation was given that the CIL Regulations explained that ‘local councils’ with a ‘made’ Neighbourhood Plan would receive 25% of the CIL receipts levied within the local council area.  Local councils without a ‘made’ neighbourhood plan would receive 15% of the CIL receipts levied in the area (capped at £100 per house within the local council area).  Regulations 59A to 60 of the CIL Regulations 2010 (as amended) provided full details setting out the criteria on what the money could be spent on and when the CIL receipts should be passed to the relevant local councils..

·         The difference between the use of S106 and CIL to improve infrastructure in the District was explained and, simply put, would result in CIL having a much wider scope than S106.  CIL would replace those infrastructure contributions for off site improvement (except in the case of the strategic housing allocations) whilst S106 itself would continue to be required to deliver on site mitigation measures.  Members were advised that CIL would be charged on even the smallest development (including for a development of one dwelling) whereas S106 would not apply to such small developments.

·         The impact of CIL on those home owners who wished to alter or extend their properties was discussed.  Officers advised that CIL was only charged on extensions where it measured more than 100sqm (net additional floorspace); where an extension was more than 100sqm or a residential annexe was built, the homeowner could apply for a ‘self build’ exemption from paying CIL.

·         Whether the viability threshold could be increased – officer advice was given that the figure had been taken from the consultants recommendations which had been based on very in depth calculations.  This had been looked at over a number of years and it was felt that the right figure had been set as CIL guidance was clear that CIL should not be set at the limits of viability.

In turning to the additional recommendation put forward at the meeting, Members supported the principle of being able to charge CIL on static caravans or holiday rental units should these be considered to be in residential use or have the potential to be used for residential use.  A request was made for further clarification around mobile home and residential use and what was not classed as a building for CIL purposes.

            However, it was picked up by Members that purpose built student accommodation was not included in the residential definition and concerns were expressed that should that use change in the future to a residential use, CIL would not be able to then be charged.  The Principal Planning Officer gave a response that she would look back at the details within the CIL Regulations 2010 regarding the calculation of chargeable amounts on a change of use to check.  Members felt that clarification of the issue would be helpful.

            It was acknowledged that a delay to the CIL Charging Schedule process at this stage would significantly delay the likely implementation date of CIL.  This would mean that the Council’s predicted CIL income might not be achieved and the passing of CIL to Town and Parish Councils would also be delayed.  It was therefore requested and agreed that the Chairman would be briefed with further information on these matters for when the item was referred to at the meeting at Full Council on 17 July 2019 to enable Members to come to an informed decision.

            The Subcommittee

RECOMMEND TO FULL COUNCIL – That, subject to further guidance relating to student accommodation and the status of residential accommodation in a holiday environment,

(1)    the Draft Charging Schedule (Submission Version) (the DCS Submission Version) (provided as Background Paper 3 to this report) along with all required supporting documentation, as required, are submitted to the appointed independent Examiner in accordance with Regulation 19 of the CIL Regulations (as amended) ON 31 July, or as close as to that date as possible.

(2)  residential does not include residential institutions, including purpose built student accommodation.  Neither does it include development which is covered by a condition that limits it to holiday use only.  Where this condition is not applied to static caravans or holiday rental units, these should be considered to be in residential use, or have the potential to be used for residential use.