CIL – New Research Lays Bare Planning Cost
E³ Consulting analyse 2020/21 PINS CIL Decisions

National property tax specialists E³ Consulting analysed every Planning Inspectorate (PINS) appeal since January 2020 and found that the vast majority were upheld in favour of the local planning authority.

E³ – with offices in London, Southampton and Bournemouth – found that 65 appeals were made against local authority decisions regarding CIL. There was less than a 30 per cent success rate.

It has highlighted appeal cases which demonstrated the necessity of acting early, taking appropriate advice and keeping evidence to show that procedures have been complied with. 

Alun Oliver FRICS, managing director of E³ Consulting, said: “CIL is highly procedural and overcomplex.  “A lack of understanding leads to time consuming and costly appeals.  Often the appeals are made as an emotional response to the perceived unfairness of CIL, as it is seemingly a heavy price to pay for relatively small administrative mistakes.  This response is common however not useful as retrospective action in CIL is fruitless and time consuming.  Developers and homeowners must be proactive from the very start with CIL or may rue the day they chose to put off dealing with CIL!”

“CIL can be costly and can hugely increase the cost of a development.  Without expert knowledge it is easy to get lost in the procedural nature of CIL and miss out on key deadlines and documents.  Most importantly, all reliefs, exemptions, reviews or appeals must be concluded before work commences on site”

CIL was introduced through the Planning Act 2008 to replace Section 106 agreements in planning permissions England and Wales to fund vital infrastructure, such as roads, parks and GP surgeries. Coming into force in 2010, more than 70 local planning authorities have now adopted CIL.

However, unlike Section 106 agreements it is non-negotiable with applicants facing a set levy depending on the local authority’s own schedule – often differing for varying locations and planning use.  The most common development type affected by CIL is residential, but many councils also apply it other forms of property, including halls of residence, hotels, retail and offices. 

It is calculated per square metre of floorspace and applies to new developments exceeding 100 square metres or creating one or more new dwellings – meaning many homeowners building extensions should be exempt as well as with people building their own home.  Any exemptions or reliefs need to be gained prior to work starting.

E³ conducted its own set of research based on CIL appeals by the Planning Inspectorate on GOV.uk webpage.  Some 38 per cent of cases involved disputes over the start date of works.  Overall, the majority of appeals – 39 out of 65 cases – were made on the basis that a did not occur yet few had grounds or evidence to support their appeal.