This webpage
This webpage details the NKDC Infrastructure Funding Statement for 2023-24. If you prefer, you can download and view this information in PDF format from the downloads tab. You can also download and view appendix information from the downloads tab.
Infrastructure funding statement 2023-2024
1 | Introduction
An Infrastructure Funding Statement (IFS) is an annual report that all local planning authorities, in accordance with Regulation 121A of the Community Infrastructure Levy Regulations 2010 (as amended), are required to publish. The purpose of an IFS is to summarise the developer contributions agreed, received and spent during a ‘reporting year’ (April to March), and to set out the Council’s spending priorities for these contributions.
Developer contributions administered by NKDC can be split into two main categories:
- Community Infrastructure Levy (CIL) - A ‘levy’ on new development, payable by developers to fund strategic infrastructure projects necessary to support growth. CIL in North Kesteven is applied in accordance with our adopted Charging Schedule.
- Section 106 Agreements (S106) - A legal agreement entered into alongside planning permission, comprising one or more ‘obligations’ to fund both strategic and more localised infrastructure projects necessary to support growth. Section 106 agreements are entered into in accordance with the Polices contained within the Central Lincolnshire Local Plan 2023.
The District Council does not collect data on ‘Section 278’ highway agreements entered into by Lincolnshire County Council. These agreements are therefore not included in the IFS. This IFS covers the reporting year April 2023 to March 2024.
2 | Infrastructure Spending Priorities
CIL spending priorities for developer contributions are set by the Central Lincolnshire Strategic Planning Committee. CIL receipts collected in NKDC are apportioned as set out below:
- Local Councils' meaningful proportion: 25% with Neighbourhood Plan; 15% without Neighbourhood Plan
- NKDC: 5% for CIL administration
- Lincolnshire County Council: Remaining balance
The ‘remaining balance’ referred to in ‘Figure 1’ represents strategic infrastructure spending across the Central Lincolnshire Local Plan area. Current CIL spending priorities relate to programmes / projects delivered by Lincolnshire County Council, namely:
- Lincoln Eastern Bypass; and
- Secondary Education provision
‘Local Councils’ are Town and Parish Councils that have received CIL chargeable development(s) in their areas are entitled to receive a proportion of the levy collected.
3 | Community Infrastructure Levy: Receipts collected during reporting year
Key CIL Data
The following data is a summary of CIL receipts collected by the Council, and CIL expenditure, during the reporting year. A detailed breakdown of this data is provided in ‘Appendix 1’ and ‘Appendix 2’.
3.1 | Receipts
- Total CIL receipts received (A) - £946,349.17
- Amount of (A) allocated to Local Councils - £154,576.57
- Amount of (A) allocated to NKDC’s administration of CIL - £47,199.72
3.2 | Demand Notices
- Total value of demand notices issued during reporting year - £1,091,391.94
3.3 | Expenditure
- Total CIL receipts passed to Local Councils - £182,874.92
- Total CIL receipts spent (excluding Local Councils) - £791,504.42
3.4 | Receipts retained at year end
- Total CIL receipts received during reporting year and retained at year end - £692,884.67
- Total overall CIL receipts retained at year end - £692,884.67
- Total CIL receipts retained, and not allocated - £0*
* All CIL receipts held by NKDC that are not allocated to Local Councils or NK administration are automatically allocated to Lincolnshire County Council, in accordance with Section 2 of this report.
3.5 | Regulations 59E and 59F (receipts not spent within 5 years)
There are no CIL receipts, expenditure, notices or retained monies to which Regulations 59E and 59F apply in NK.
4 | Section 106 Agreements
Key Section 106 Data
This section of the IFS summarises the developer contributions derived from Section 106 agreements during the reporting year. A detailed breakdown of this data is provided in ‘Appendix 3’, ‘Appendix 4’ and ‘Appendix 5’.
4.1 | Total Section 106 financial contributions received
- Infrastructure type Total Education - £891,969.12
- Highways and transport - £605,715.12
- Health - £37,899.65
- Open space/community facilities - £258,722.91
- Affordable housing (off site) - £0
TOTAL £1,794,306.80
4.2 | Non-financial Section 106 contributions received
In addition to financial contributions, developers in NK also provided 91 affordable homes that had been secured through section 106 agreements.
4.3 | Section 106 expenditure
The Council paid a total of £1,043,127.94 to beneficiaries of section 106 agreements during the reporting year. These beneficiaries include parish councils, Lincolnshire County Council and the NHS.
4.4 | Section 106 receipts retained at year end
- Total section 106 receipts received during reporting year and retained at year end - £1,794,306.80
- Total overall section 106 receipts retained at year end (includes receipts from previous years) - £12,455,359.17
- Total section 106 receipts retained, and not allocated - £0*
* NKDC does not operate a ‘tariff’ system for section 106 contributions, and therefore all contributions are pre-allocated to infrastructure schemes, agreed with the developer at the time each agreement is entered into. The Council operates a robust section 106 management system, releasing funds to beneficiary organisations upon formal request only where evidence is provided that demonstrates their contribution(s) are to be spent in accordance with the relevant agreement(s). Funds may therefore be retained at the end of a reporting year if the Council has not received a formal request from a beneficiary to release their contribution(s).
5 | Forecasting
The Council intends to provide forecasting data as part of its IFS in the future. However due to current economic conditions, and the resulting impact on development and the wider economy, it is proposed that such forecasting would currently be unreliable. As such, no forecasting has been included in this report.
Appendices
Appendix information can be downloaded and viewed.