The British Property Federation said it will oppose any attempt to extend the scope of the Community Infrastructure Levy (CIL) from its core aim 鈥� funding the vital infrastructure needed to support development 鈥� to an undefined obligation to 鈥榮upport communities鈥�.
This could see CIL revenues designed for new roads, schools and hospitals instead diverted to plug the hole in the funding of other public services for which it was never intended.
The BPF argues that unless the 拢6bn predicted to be raised by CIL over the next decade is spent on infrastructure then development would be held back in many parts of the country and economic growth would suffer. In the 2010 budget, the government said that 拢200bn of investment in infrastructure would be needed by 2015.
It could also turn communities against development when they see that the new infrastructure needed to mitigate its impact can no longer be afforded. This would be counter to government鈥檚 key aim of giving communities incentives to accept development in their areas.
The BPF spoke out after government spokesman Earl Attlee announced told a House of Lords debate on the Localism Bill this week that ministers would consider 鈥渨hether widening permitted uses of the levy would make the instrument more effective and better placed effectively to promote, support and enable new development鈥�. He also announced a government consultation this summer that would allow CIL payments to be spent on affordable housing.
British Property Federation chief executive Liz Peace said: 鈥淲e are delighted that ministers intend to reflect on the proper working of CIL rather than making decisions in haste.
鈥淗owever, we would urge them to appreciate that if CIL is diverted away from vital investment in new infrastructure then this will undermine the ability of authorities to deliver development and will compromise economic growth.
鈥淚t could also make communities more hostile to development 鈥� not less, as government seems to hope.
鈥淐oncerns around new development are usually around the impact on local services and the need for new roads, schools and hospitals. Taking money away from this necessary investment will be seen for what it is - a desperate and crude attempt to divert CIL funds to plug a hole in the funding of public services.鈥�
Got a story? Email news@theconstructionindex.co.uk
