Department for Levelling Up, Housing & Communities (DLUHC) has published a technical consultation on the Infrastructure Levy, which is a reform to the existing system of Section 106 planning obligations and the Community Infrastructure Levy in England. This is supported by a research report prepared by the University of Liverpool. The consultation can be viewed here and it closes on 9 June 2023.
The Infrastructure Levy will be a single, mandatory charge, set and collected by local planning authorities. It will be non-negotiable, meaning that developers will be required to contribute their fair share towards affordable housing and important infrastructure like schools, roads, active travel routes and GP surgeries. The Levy seeks to reform the negotiation of section 106 agreements that can cause delay to
developments starting on site, whilst still ensuring that vital mitigations are delivered on site. It also seeks to secure at least as much, if not more affordable housing than the current system.
The consultation seeks views on how the Levy will be delivered in regulations following Royal Assent of the Levelling Up and Regeneration Bill. This will be followed by a further consultation on the draft regulations when they are ready, followed by a phased ‘test and learn’ approach to implementation. DLUHC understands the importance of getting the new system right and is keen to receive as much feedback as possible from those who are involved in negotiating Section 106 agreements, valuing land and delivering infrastructure to help shape this work going forward.