Waverley Borough Council

Planning Infrastructure Contributions

Community Infrastructure Levy (CIL) Regulation 123 restricts the use of pooled contributions towards infrastructure that will, in the future, be funded by the CIL itself.

With effect from 6 April 2015, no more contributions may be collected in respect of a specific infrastructure project or a type of infrastructure through a Section 106 agreement, if five or more obligations for that project or type of infrastructure have already been entered into since 6 April 2010 and it is a type of infrastructure that is capable of being funded by CIL.

The current tests for legal agreements are set out in CIL Regulation 122 (2) and paragraph 204 of the NPPF, whereby the obligation must be:

  • necessary to make the development acceptable in planning terms;
  • directly related to the development; and
  • fairly and reasonably related in scale and kind to the development.

From 6 April 2015, and until the Council adopts its CIL Charging Schedule,  affordable housing and tariff-style contributions for infrastructure projects or types can only be requested – 

(i)     on a site-specific basis at the request of the infrastructure provider ;

(ii)   where the infrastructure provider can confirm that the request meets the pooling limit of no more than five permissions/obligations since 6 April 2010; and

(iii) in accordance with the thresholds for housing developments as set out in the National Planning Policy Guidance: Planning Obligations paragraphs 12 – 23, as follows -

Schemes of 11 or more units  Schemes of 6 to 10 units  Schemes of 5 units or fewer
Contributions will be sought in accordance with existing national and local planning policies.

Contributions will be sought in accordance with existing policies -

  • where the combined gross floorspace of the development exceeds 1,000 sq m; or
  • if the gross floorspace of the development is 1,000 sq m or less, only for sites that are within the AONB. In such cases, contributions will be in the form of a cash payment that is commuted until after completion of the development.
Contributions will only be sought to fund measures to facilitate development that would otherwise be unable to proceed because of regulatory or EU Directive requirements.

If a building is demolished as part of a scheme for more than 10 dwellings, a credit for that floorspace must be taken into account and could take the scheme below the 10-unit threshold.

The effect of CIL regulation 123 is that the Council can no longer collect tariff-style contributions from developers to pooled ‘funding pots’ intended to provide common types of infrastructure for the wider area. This was the basis for the Council’s Planning Infrastructure Contributions Supplementary Planning Document (SPD). However, whilst the tariff system set out in the SPD is no longer valid, the SPD itself contains useful information on the principles behind the negotiation of planning obligations required in connection with particular forms of new development (saved Local Plan Policies D13 and D14 within Chapter 2: Development). The Council's interactive calculator can also no longer be used.

Where infrastructure contributions (excluding affordable housing) are required, the scale of charges set out below should be used to assess the amount of money to be requested. These are for guidance only and can be regarded as a starting point for calculating the required contribution. In each case, consideration should be given to –

  • the total cost of the infrastructure type or project;
  • alternative  or complementary sources of funding; and
  • the restriction that no more than five obligations can be pooled towards the funding of the infrastructure type or project.

 1. Residential development

 Location  Charge per Occupant
 Within a Town Centre (see Note)  £4638
 Outside a Town Centre  £5253

 The number of occupants per dwelling is determined as follows –

 Dwelling Size  Occupancy Rate (Persons)
 1 bedroom  1.31
 2 bedrooms  1.76
 3 bedrooms  2.51
 4 bedrooms  2.86
 5 bedrooms or more  3.73

 2. Commercial development

 Infrastructure type Charge per Worker 
 Within a Town Centre (See Note)  £901
 Outside a Town Centre  £1516

The number of workers for each land use is determined as follows -

 Primary land use Floorspace per Worker (sq m)
 Retailing 34.4
 Financial/ professional services 15 
 Restaurant or Pub 31.6
 Offices 16.4
 Research and Development 67
 Light Industrial 37.5
 Manufacturing 33.1
 Storage and Distribution 46.2

Note: The difference in charges regarding a development’s location within or outside a town centre relates to the relative costs of transport improvements. A ‘town centre’ is that defined in the 2002 adopted Local Plan (town centre boundaries shown on Inset maps for each centre) 

Advice for Applicants

The Council’s validation list for planning applications has been updated. Further guidance is given in the National Planning Policy Guidance, “Is there a limit on the pooling of Section 106 contributions?”

Please submit the following with the application:

  1. A draft Unilateral Undertaking in the appropriate format (see the model legal agreements (unilateral undertakings) ;
  2. If necessary, Land Registry title number(s) or up-to-date title register and plan for the application site (and other land if the planning obligation relates to land outside the application site) ; and
  3. The fee for reviewing the Unilateral Undertaking (see below).

The applicant landowner, mortgagee and any person with a legal interest in the application site, will be required to be a party to the Undertaking. If applicants wish to prepare the Undertaking themselves, there will be a standard fee of £250 per Undertaking for the Council's Legal Services team to review the document and to check title.

It is recommended to provide the draft Undertaking in Microsoft Word format before submitting the final signed version. Please ensure that the final signed Undertaking is returned to Legal Services AT LEAST ONE WEEK prior to determination of the application, or it could result in a refusal of the application.

Alternatively, the Council's Legal Services team can undertake the legal work on your behalf and prepare an Undertaking for signature by all parties. The fee for this is £450 per Undertaking, and you should submit this with your application together with up-to-date copies of your Land Registry title register and plan.

In the event of particular complexities in reviewing or drafting a Unilateral Undertaking, the legal fee may be increased at the Council's discretion. Please contact the Legal Services team in advance for an estimate of the cost of preparing or reviewing a bespoke planning obligation.

 Exceptions

No contribution is required for -

  • Temporary dwellings, replacement dwellings or affordable housing
  • Rural exception sites
  • Self-build housing
  • Gypsy and Traveller Sites: the Caravan Act allows caravans within certain dimensions to be replaced without consent

Where there is a permission on a site which was not previously subject to the tariff, and a new application is received on the same site -

  • Increase in the number of dwellings or bedrooms on site: contribution for the difference.
  • Same number of dwellings: no contribution for period up to expiry of extant permission, but clause in Unilateral Undertaking to contribute if commencement of development is after expiry.

Thames Basin Heaths Special Protection Area Avoidance Strategy and Hindhead Avoidance Strategy

The changes to the infrastructure contributions system do NOT apply to contributions required to mitigate the effects of development on the Thames Basin Heaths and Wealden Heaths SPAs. Such mitigation remains a legal requirement of the EU Directive and contributions will continue to be collected in accordance with the current approved tariffs.

Page owner: Jennie Falconer. Last updated: 22/05/2015 15:15