Planning Bill

House of Commons

Session 2007 - 08
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Other Bills before Parliament

Planning Bill

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(2)
A local planning authority is the charging authority for its area.
(3)
But—
(a)
the Mayor of London is a charging authority for Greater London (in
addition to the local planning authorities),
(b)
the Broads Authority is the only charging authority for the Broads
5
(within the meaning given by section 2(3) of the Norfolk and Suffolk
Broads Act 1988 (c. 4)), and
(c)
the Council of the Isles of Scilly is the only charging authority for the
Isles of Scilly.
(4)
CIL regulations may provide for any of the following to be the charging
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authority for an area, or in the case of Greater London one of the charging
authorities, in place of the charging authority under subsection (2), (3)(b) or
(c)—
(a)
a county council,
(b)
a county borough council,
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(c)
a district council,
(d)
a metropolitan district council, and
(e)
a London borough council (within the meaning of TCPA 1990).
(5)
In this section, “local planning authority” has the meaning given by—
(a)
section 37 of PCPA 2004 in relation to England, and
20
(b)
section 78 of PCPA 2004 in relation to Wales.
206
Joint committees
(1)
This section applies if a joint committee that includes a charging authority is
established under section 29 of PCPA 2004.
(2)
CIL regulations may provide that the joint committee is to exercise specified
25
functions, in respect of the area specified in the agreement under section 29(1)
of PCPA 2004, on behalf of the charging authority.
(3)
The regulations may make provision corresponding to provisions relating to
joint committees in Part 6 of the Local Government Act 1972 (c. 70) in respect
of the discharge of the specified functions.
30
207
Liability
(1)
Where liability to CIL would arise in respect of proposed development (in
accordance with provision made by a charging authority under and by virtue
of section 205 and CIL regulations) a person may assume liability to pay the
levy.
35
(2)
An assumption of liability—
(a)
may be made before development commences, and
(b)
must be made in accordance with any provision of CIL regulations
about the procedure for assuming liability.
(3)
A person who assumes liability for CIL before the commencement of
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development becomes liable when development is commenced in reliance on
planning permission.

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(4)
CIL regulations must make provision for an owner or developer of land to be
liable for CIL where development is commenced in reliance on planning
permission if—
(a)
nobody has assumed liability in accordance with the regulations, or
(b)
other specified circumstances arise (such as the insolvency or
5
withdrawal of a person who has assumed liability).
(5)
CIL regulations may make provision about—
(a)
joint liability (with or without several liability);
(b)
liability of partnerships;
(c)
assumption of partial liability (and subsection (4)(a) applies where
10
liability has not been wholly assumed);
(d)
apportionment of liability (which may—
(i)
include provision for referral to a specified person or body for
determination, and
(ii)
include provision for appeals);
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(e)
withdrawal of assumption of liability;
(f)
cancellation of assumption of liability by a charging authority (in which
case subsection (4)(a) applies);
(g)
transfer of liability (whether before or after development commences
and whether or not liability has been assumed).
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(6)
The amount of any liability for CIL is to be calculated by reference to the time
when planning permission first permits the development as a result of which
the levy becomes payable.
(7)
CIL regulations may make provision for liability for CIL to arise where
development which requires planning permission is commenced without it
25
(and subsection (6) is subject to this subsection).
(8)
CIL regulations may provide for liability to CIL to arise in respect of a
development where—
(a)
the development was exempt from CIL, or subject to a reduced rate of
CIL charge, and
30
(b)
the description or purpose of the development changes.
208
Liability: interpretation of key terms
(1)
In section 207 “development” means—
(a)
anything done by way of or for the purpose of the creation of a new
building, or
35
(b)
anything done to or in respect of an existing building.
(2)
CIL regulations may provide for—
(a)
works or changes in use of a specified kind not to be treated as
development;
(b)
the creation of, or anything done to or in respect of, a structure of a
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specified kind to be treated as development.
(3)
CIL regulations must include provision for determining when development is
treated as commencing.

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(4)
Regulations under subsection (3) may, in particular, provide for development
to be treated as commencing when some specified activity or event is
undertaken or occurs, where the activity or event—
(a)
is not development within the meaning of subsection (1), but
(b)
has a specified kind of connection with a development within the
5
meaning of that subsection.
(5)
CIL regulations must define planning permission (which may include
planning permission within the meaning of TCPA 1990 and any other kind of
permission or consent (however called, and whether general or specific)).
(6)
CIL regulations must include provision for determining the time at which
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planning permission is treated as first permitting development; and the
regulations may, in particular, make provision—
(a)
about outline planning permission;
(b)
for permission to be treated as having been given at a particular time in
the case of general consents.
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(7)
For the purposes of section 207—
(a)
“owner” of land means a person who owns an interest in the land, and
(b)
“developer” means a person who is wholly or partly responsible for
carrying out a development.
(8)
CIL regulations may make provision for a person to be or not to be treated as
20
an owner or developer of land in specified circumstances.
209
Charities
(1)
CIL regulations must provide for an exemption from liability to pay CIL in
respect of a development where—
(a)
the person who would otherwise be liable to pay CIL in respect of the
25
development is a relevant charity in England and Wales, and
(b)
the building or structure in respect of which CIL liability would
otherwise arise is to be used wholly or mainly for a charitable purpose
of the charity within the meaning of section 2 of the Charities Act 2006
(c. 50).
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(2)
CIL regulations may—
(a)
provide for an exemption from liability to pay CIL where the person
who would otherwise be liable to pay CIL in respect of the
development is an institution established for a charitable purpose;
(b)
require charging authorities to make arrangements for an exemption
35
from, or reduction in, liability to pay CIL where the person who would
otherwise be liable to pay CIL in respect of the development is an
institution established for a charitable purpose.
(3)
Regulations under subsection (1) or (2) may provide that an exemption or
reduction applies only if specified conditions are satisfied.
40
(4)
For the purposes of subsection (1), a relevant charity in England and Wales is
an institution which—
(a)
is registered in the register of charities kept by the Charity Commission
under section 3 of the Charities Act 1993 (c. 10), or
(b)
is a charity within the meaning of section 1(1) of the Charities Act 2006
45
but is not required to register under section 3 of the Charities Act 1993.

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(5)
In subsection (2), a charitable purpose is a purpose falling within section 2(2)
of the Charities Act 2006 (c. 50); but CIL regulations may provide for an
institution of a specified kind to be, or not to be, treated as an institution
established for a charitable purpose.
210
Amount
5
(1)
A charging authority which proposes to charge CIL must issue a document (a
“charging schedule”) setting rates, or other criteria, by reference to which the
amount of CIL chargeable in respect of development in its area is to be
determined.
(2)
A charging authority, in setting rates or other criteria, must have regard, to the
10
extent and in the manner specified by CIL regulations, to—
(a)
actual and expected costs of infrastructure (whether by reference to lists
prepared by virtue of section 215(5)(a) or otherwise);
(b)
matters specified by CIL regulations relating to the economic viability
of development (which may include, in particular, actual or potential
15
economic effects of planning permission or of the imposition of CIL);
(c)
other actual and expected sources of funding for infrastructure.
(3)
CIL regulations may make other provision about setting rates or other criteria.
(4)
The regulations may, in particular, permit or require charging authorities in
setting rates or other criteria—
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(a)
to have regard, to the extent and in the manner specified by the
regulations, to actual or expected administrative expenses in
connection with CIL;
(b)
to have regard, to the extent and in the manner specified by the
regulations, to values used or documents produced for other statutory
25
purposes;
(c)
to integrate the process, to the extent and in the manner specified by the
regulations, with processes undertaken for other statutory purposes;
(d)
to produce charging schedules having effect in relation to specified
periods (subject to revision).
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(5)
The regulations may permit or require charging schedules to adopt specified
methods of calculation.
(6)
In particular, the regulations may—
(a)
permit or require charging schedules to operate by reference to
descriptions or purposes of development;
35
(b)
permit or require charging schedules to operate by reference to any
measurement of the amount or nature of development (whether by
reference to measurements of floor space, to numbers or intended uses
of buildings, to numbers or intended uses of units within buildings, to
allocation of space within buildings or units, to values or expected
40
values or in any other way);
(c)
permit or require charging schedules to operate by reference to the
nature or existing use of the place where development is undertaken;
(d)
permit or require charging schedules to operate by reference to an
index used for determining a rate of inflation;
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(e)
permit or require charging schedules to operate by reference to values
used or documents produced for other statutory purposes;

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(f)
provide, or permit or require provision, for differential rates, which
may include provision for supplementary charges, a nil rate, increased
rates or reductions.
(7)
A charging authority may consult, or take other steps, in connection with the
preparation of a charging schedule (subject to CIL regulations).
5
(8)
The regulations may require a charging authority to provide in specified
circumstances an estimate of the amount of CIL chargeable in respect of
development of land.
(9)
A charging authority may revise a charging schedule.
(10)
This section and sections 211, 212 and 213(1) and (2) apply to the revision of a
10
charging schedule as they apply to the preparation of a charging schedule.
211
Charging schedule: examination
(1)
Before approving a charging schedule a charging authority must appoint a
person (“the examiner”) to examine a draft.
(2)
The charging authority must appoint someone who, in the opinion of the
15
authority—
(a)
is independent of the charging authority, and
(b)
has appropriate qualifications and experience.
(3)
The charging authority may, with the agreement of the examiner, appoint
persons to assist the examiner.
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(4)
The draft submitted to the examiner must be accompanied by a declaration
(approved under subsection (5) or (6))—
(a)
that the charging authority has complied with the requirements of this
Part and CIL regulations (including the requirements to have regard to
the matters listed in section 210(2) and (4)),
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(b)
that the charging authority has used appropriate available evidence to
inform the draft charging schedule, and
(c)
dealing with any other matter prescribed by CIL regulations.
(5)
A charging authority (other than the Mayor of London) must approve the
declaration—
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(a)
at a meeting of the authority, and
(b)
by a majority of votes of members present.
(6)
The Mayor of London must approve the declaration personally.
(7)
The examiner must consider the matters listed in subsection (4) and—
(a)
recommend that the draft charging schedule be approved, rejected or
35
approved with specified modifications, and
(b)
give reasons for the recommendations.
(8)
The charging authority must publish the recommendations and reasons.
(9)
CIL regulations must require a charging authority to allow anyone who makes
representations about a draft charging schedule to be heard by the examiner;
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and the regulations may make provision about timing and procedure.

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(10)
CIL regulations may make provision for examiners to reconsider their
decisions with a view to correcting errors (before or after the approval of a
charging schedule).
(11)
The charging authority may withdraw a draft.
212
Charging schedule: approval
5
(1)
A charging authority may approve a charging schedule only—
(a)
if the examiner under section 211 has recommended approval, and
(b)
subject to any modifications recommended by the examiner.
(2)
A charging authority (other than the Mayor of London) must approve a
charging schedule—
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(a)
at a meeting of the authority, and
(b)
by a majority of votes of members present.
(3)
The Mayor of London must approve a charging schedule personally.
(4)
CIL regulations may make provision for the correction of errors in a charging
schedule after approval.
15
213
Charging schedule: effect
(1)
A charging schedule approved under section 212 may not take effect before it
is published by the charging authority.
(2)
CIL regulations may make provision about publication of a charging schedule
after approval.
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(3)
A charging authority may determine that a charging schedule is to cease to
have effect.
(4)
CIL regulations may provide that a charging authority may only make a
determination under subsection (3) in circumstances specified by the
regulations.
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(5)
A charging authority (other than the Mayor of London) must make a
determination under subsection (3)—
(a)
at a meeting of the authority, and
(b)
by a majority of votes of members present.
(6)
The Mayor of London must make a determination under subsection (3)
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personally.
214
Appeals
(1)
CIL regulations must provide for a right of appeal on a question of fact in
relation to the application of methods for calculating CIL to a person appointed
by the Commissioners for Her Majesty’s Revenue and Customs.
35
(2)
The regulations must require that the person appointed under subsection (1)
is—
(a)
a valuation officer appointed under section 61 of the Local Government
Finance Act 1988 (c. 41), or
(b)
a district valuer within the meaning of section 622 of the Housing Act
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1985 (c. 68).

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(3)
Regulations under this section or section 207(5)(d)(ii) may, in particular, make
provision about—
(a)
the period within which the right of appeal may be exercised,
(b)
the procedure on an appeal, and
(c)
the payment of fees, and award of costs, in relation to an appeal.
5
(4)
In any proceedings for judicial review of a decision on an appeal, the defendant
shall be the Commissioners for Her Majesty’s Revenue and Customs and not
the person appointed under subsection (1).
215
Application
(1)
Subject to section 218(5), CIL regulations must require the authority that
10
charges CIL to apply it, or cause it to be applied, to funding infrastructure.
(2)
In subsection (1) “infrastructure” includes—
(a)
roads and other transport facilities,
(b)
flood defences,
(c)
schools and other educational facilities,
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(d)
medical facilities,
(e)
sporting and recreational facilities,
(f)
open spaces, and
(g)
affordable housing (being social housing within the meaning of Part 2
of the Housing and Regeneration Act 2008 and such other housing as
20
CIL regulations may specify).
(3)
The regulations may amend subsection (2) so as to—
(a)
add, remove or vary an entry in the list of matters included within the
meaning of “infrastructure”;
(b)
list matters excluded from the meaning of “infrastructure”.
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(4)
The regulations may specify—
(a)
works, installations and other facilities that are to be, or not to be,
funded by CIL,
(b)
criteria for determining the areas in relation to which infrastructure
may be funded by CIL in respect of land, and
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(c)
what is to be, or not to be, treated as funding.
(5)
The regulations may—
(a)
require charging authorities to prepare and publish a list of projects
that are to be, or may be, wholly or partly funded by CIL;
(b)
include provision about the procedure to be followed in preparing a list
35
(which may include provision for consultation, for the appointment of
an independent person or a combination);
(c)
include provision about the circumstances in which a charging
authority may and may not apply CIL to projects not included on the
list.
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(6)
In making provision about funding the regulations may, in particular—
(a)
permit CIL to be used to reimburse expenditure already incurred;
(b)
permit CIL to be reserved for expenditure that may be incurred on
future projects;