Draft Community Infrastructure Levy (Coronavirus) (Amendment) (England) Regulations 2020

Mike Amesbury Excerpts

Tuesday 14th July 2020 General Committees

[Mike Amesbury (Weaver Vale) (Lab)]

I apologise for being slightly late—I had 9.30 in my diary; clearly, that was wrong.

The Community Infrastructure Levy Regulations 2010, which have been part of the taxation landscape for more than a decade, allow planning authorities and the Mayor of London to raise a levy on new developments in their areas, as the Minister said. The CIL can be used to fund a wide range of infrastructure to support the development of the area where it is collected. The amount of money it raises nationally is significant. A study that the Department commissioned in 2016-17 put developer contributions through the CIL at nearly £1 billion. The CIL is a good and necessary vehicle to help provide the infrastructure that all Members want to see in our communities and, importantly, the facilities and amenities that our constituents desire. Money from the CIL has contributed to, for example, the building of Crossrail, flood defences, transport, GP surgeries, schools, local highways and green spaces.

In recent weeks, the CIL has been in the media for the wrong reasons. The Government’s moral authority has been damaged by the Westferry saga, in which the Secretary of State and the developer attempted to forgo CIL obligations to Tower Hamlets. Trust, Minister, must be rebuilt.

Covid-19 has had tragic consequences for many families. Loved ones have been lost across our communities and our constituencies. Our normal way of life has been curtailed and the economy has contracted on an alarming scale. Council budgets are under huge strain. Despite the Government’s promise to do whatever it takes to support councils, the cross-party Local Government Association highlights a funding gap of nearly £10 billion. Local authorities need every element of funding to support residents and provide the stimulus needed for economic recovery.

Labour Members recognise that some small and medium-sized developers are also under strain, and practical measures are required to help. If approved, as the Minister has said, this statutory instrument will give CIL collecting authorities or the Mayor time-limited discretion to defer certain payments by smaller developers who experience financial difficulties for reasons connected to the coronavirus crisis without incurring charges for late payments. Importantly and reassuringly, this will be done at the discretion of the charging authority, although they are obliged to consider the request. It is clear that some small and medium-sized businesses need urgent support, and that undoubtedly includes the construction sector.

Developers that do not make it through this tough period will not be able to pay obligations, will not be able to protect and create jobs, and will not be able to contribute to our economic recovery. Given that fact and the time-limited period that the changes cover, we will not oppose this statutory instrument. That does not mean that I do not have questions about it. The assessment criteria that charging authorities will be required to apply to small and medium-sized developers do not seem clear in the statutory instrument. What impact assessment has been done on councils’ ability to fund infrastructure projects and thus the potential impact on local authorities? Will the Minister review the take-up of these discretionary measures within, say, three months of the application?

In conclusion, we recognise that the SI gives short-term flexibility and discretion to both charging authorities and small and medium-sized developers. Covid-19 has shone a spotlight on our broken housing market. Although the mantra of “build, build, build” might capture some headlines, it must be qualified with an emphasis on building the right mix of tenure that will be sustainable for generations to come.