Charging authorities must produce a document called a charging schedule which sets out the rate for their levy. This is a new type of document within the folder of documents making up the council’s Local Plan but will not be part of the statutory development plan.
The levy is intended to encourage development by creating a balance between collecting revenue to fund infrastructure and ensuring that the rates are not so high that they put development at serious risk. The council draws on the infrastructure planning that underpins the development strategy for the area to help identify the total infrastructure funding gap.
Rates set should be supported by evidence, in North Kesteven’s case a whole plan viability assessment, and the area’s infrastructure needs. One standard rate can be set for an area or, if justified, specific rates for different areas and types of development can be established. The ability to set differential rates gives charging authorities more flexibility to deal with the varying circumstances of each are they work in.
Consultation must be undertaken on the draft schedule and the proposed levy rates. A public examination by an independent person, usually an Inspector from The Planning Inspectorate, is then required before the charging authority can formally approve it.
The Local Authority can either adopt CIL at the rates advised by the Examiner or choose not to impose CIL. A new evidence base, consultation process and Examination but be undertaken to set different rates from those recommended by the Examiner.