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Councils will be required to publish details on how they spend money handed over by developers for affordable housing and local infrastructure projects under new planning rules coming into force today.
The government said the Community Infrastructure Levy (CIL) and Section 106 reforms will mean communities can see how developer cash benefits them, speed up payments to councils and help building work start more quickly.
Local authorities will be legally obliged to publish an annual report on all CIL agreements made with developers from December 2020.
CIL is a charge paid by developers and is designed to fund the roads, schools, doctors’ surgeries and parkland needed to support new housing.
It is different to Section 106 planning agreements, where developers must agree to put up a portion of the new homes for affordable housing or pay councils a sum in lieu.
In 2016/17, councils received £6bn in CIL payments but have not previously been required to report on how much they are paid or how the money is spent.
The government said it is also making it easier for councils to fund single, large infrastructure projects using CIL cash received from multiple developments.
Housing minister Esther McVey said: “The new rules coming into force today will allow residents to know how developers are contributing to the local community when they build new homes – whether that’s contributing to building a brand-new school, roads or a doctor’s surgery that the area needs.”
A new planning practice guidance has been published today setting out the changes and aims to simplify the CIL advice.
Update: at 03/09/19 this story was updated following further information provided by MHCLG