Draft Community Infrastructure Levy (Amendment) Regulations 2018

Lord Mann Excerpts

Wednesday 24th January 2018 General Committees

[John Mann (Bassetlaw) (Lab)]

Yet again, an SI on CIL—the most incompetent piece of Government legislation in our lifetime. It has required a whole series of amendments, because it was so incompetently brought in. I recall highlighting the £180,000 CIL that every single new housebuilder in Hertfordshire would have had to pay on the original proposals, which, thankfully, were changed by pressure and amendment, with a little bit of cross-party work to do that.

I want to clarify whether there is anything in the proposals that will prevent my constituent who moved into a property that has been derelict for five years to create a new enterprise to deal with that terrible site, which is a blight on the town centre, from having to pay £15,000 tax for the privilege of regenerating the local economy. Or is there anything in the proposals for my constituent who wishes to knock her house down and build another one, but who has to pay £10,000 in CIL tax upfront, in cash, for the privilege of building a more environmentally sound, more beautiful and more fitting property than the old wreck she is in at the moment? Is there anything in the SI that will address those issues? If not, can we expect more SIs? I volunteer to sit on them, if they address those two problems.

--- Later in debate ---

[Dominic Raab]

I thank the hon. Lady for that clarification. I think we are agreed on that point. There has been no change to the rate. The indexation applies to the specific change; it does not apply to pre-CIL matters or applications.

The lack of clarity relates to an application originally brought by Peabody, a registered provider of affordable housing, and a judicial review involving Wandsworth Borough Council. I make that point because we are trying to ensure that the original intention of the 2010 regulations is enforced. Those regulations almost invariably have been properly applied by local authorities, in accordance with the original intention, and accepted by developers. That case is a fairly isolated incident of the wrong interpretation being applied. None the less, for the sake of developers, local authorities and communities, we want to ensure that there is proper legal certainty.

My hon. Friend the Member for Bosworth raised the issue of CIL’s application to the whole country rather than just to London. I hope that I made this point in my opening remarks, but I am happy to reaffirm it: in the wider country, £240 million was raised through CIL last year. CIL is certainly not just a metropolitan or London-centric issue; it applies to the whole country. We are trying to ensure that, where there is much-needed homebuilding, infrastructure is provided, too. CIL is an important contribution to that, certainly not just in London.

My hon. Friend also asked about section 106. That is, in effect, the negotiated contribution that a developer makes, bearing in mind the infrastructure that is required and the viability of the development. The distinction is that that is agreed, whereas CIL is, in effect, levied, but both are critical. We want to ensure that we provide the homes we need in the places we need them, with the necessary infrastructure and funding.

The hon. Member for Bassetlaw, in his usual tub-thumping way, criticised the legislation. He made some perfectly reasonable points. I gently point out to him that the primary legislation for CIL was passed under the last Labour Government, but in the spirit of co-operation, if he has any further ideas or thoughts about the legislation or its application to his constituency, he should feel free to write to me.

[John Mann]

CIL’s introduction, and the regulations that came with it, came in 2012. It was raised first with the Chancellor at the Treasury Sub-Committee, and then in the House by me and the Minister’s colleague—I cannot remember where he is from, but his first name is Richard and his surname is rashers of pork that are eaten on a morning. He is a very good man, and he and I campaigned to get the CIL down to something rational. I want to know about my constituent who is putting in his own money to do up a derelict property and is getting taxed for the privilege. That does not seem to be the intended consequence, but it is the fact of the matter. That is not good news for someone who is trying to invest.

[Dominic Raab]

I thank the hon. Gentleman. I am not familiar with all the facts of the case. If he would like to write to me, I am happy to address them. I was simply making the point about the primary legislation. There ought to be cross-party support for an important mechanism to provide targeted investment where homes are needed.

The hon. Member for Harrow East—