Implementation of the Community Infrastructure Levy (CIL)

The Community Infrastructure Levy (CIL) is a new levy which the Council will charge on certain categories of new development in certain locations within Gateshead. The CIL was adopted by us on 10 November 2016, and the charges were across Gateshead's charging areas from 1 January 2017. Please note that any relevant planning applications that have not been determined before 1 January 2017 will be liable to pay the CIL.

The money raised through the Gateshead CIL Charging Schedule (PDF, 2 MB)(opens new window) will help to pay for infrastructure needed as a result of growth in Gateshead, as set out in the Regulation 123 Infrastructure List (PDF, 124 KB)(opens new window). This includes primary schools, strategic transport and green infrastructure, and at Metrogreen, water and flood alleviation and mitigation, and green infrastructure.

Gateshead Infrastructure Funding Statement

Implementation of the CIL

A developer's guide (PDF, 137 KB)(opens new window) and frequently asked questions (PDF, 61 KB)(opens new window) document have been produced to set out in more detail how the CIL process will work. The charging zones can be viewed on the Local Plan interactive map (opens new window).

The CIL will be charged per square metre of additional floorspace on new development of more than 100sqm, new development less than 100sqm that results in the creation of a new dwelling and the conversion of a building not in lawful use which results in new dwellings.

The charges are based on viability taking into account the need to ensure an appropriate balance between the charging of development to help fund infrastructure, and ensuring the economic viability of development.

Planning obligations (secured by s.106 agreements) will still be required to address site specific issues such as the need for affordable housing, local infrastructure enhancements or site specific issues relating to mitigating the impact of a development. A Supplementary Planning Document (second review) (PDF, 595 KB)(opens new window) was adopted in March 2021 and has been published to provide clarity to developers, development management officers, stakeholders and local neighbourhoods regarding the basis on which site specific planning obligations will be sought to make a development acceptable in planning terms.

Annual CIL Rate Summary

How is indexation applied?

In accordance with Regulation 121C of the CIL Regulations, charging authorities must publish an annual CIL rate summary between 1 November and 31 December each year in relation the next calendar year. For a given year, the indexed rate is calculated in accordance with the formula: R x Iy / Ic

Where:

• R is the charging rate
• Iy is the index figure for the relevant calendar year; and
• Ic is the index figure for the calendar year in which the charging schedule rate R took effect.

The index figures for 2024 (January 1 to December 31 inclusive) are as below:

By way of example, were permission to be granted on 1 January 2025 for a residential development in Zone A, the indexed charging rate would be £60 x 381 ÷ 288 = £79.37 per sqm.

Spending the CIL

The CIL funds generated will be spent in accordance with the CIL Regulations (regulation 59) and in accordance with the Regulation 123List of Infrastructure. Up to 15% of levy receipts will be spent on local priorities in the area in which the permitted development occurs, including within Lamesley Parish, whilst 5% of the levy receipts can be spent on the costs of administering the levy.

Use Classes Order changes

The Town and Country Planning (Use Classes) (Amendment) (England) Regulations 2020 (opens new window) came into force on the 1 September 2020. CIL charges remain the same for developments in the use classes affected by these changes. This includes: Small Retail Units under 280sqm (changing from A1 to E or F2 if mostly selling essential goods, including food and at least 1km from another similar shop), Supermarkets over 280sqm (changing from A1 to E), and Retail Warehousing over 280sqm (changing from A1 to E). Changes to the Use Classes within the 'All Other Developments' category remain chargeable at £0. The remaining CIL chargeable development categories are unaffected by the recent Use Classes Order changes.

Documents

CIL Annual Report 2020 (PDF, 123 KB)(opens new window)

CIL Annual Report 2017-18 (PDF, 103 KB)(opens new window)

Gateshead Instalments Policy (PDF, 29 KB)(opens new window)

Planning Obligations SPD

Examiners Report (PDF, 204 KB)(opens new window)

Forms

Guidance on the following forms is set out in the CIL Developer Guide above.

Determining whether a development may be CIL liable (opens new window)

Notice of Chargeable Development (PDF, 298 KB)

Assumption of Liability (PDF, 311 KB)(opens new window)

Withdrawal of Assumption of Liability (PDF, 277 KB)(opens new window)

Transfer of Liability (PDF, 293 KB)(opens new window)

Commencement Notice (PDF, 282 KB)(opens new window)

Claiming Exemption and Relief (PDF, 356 KB)(opens new window)

Collecting the Levy (opens new window)

Background

Further general guidance on the Community Infrastructure Levy can be accessed by visiting:

Planning Portal - About the Community Infrastructure Levy (opens new window)

GOV UK - Community infrastructure Levy (opens new window)

Legislation - The Community Infrastructure Levy (Amendment) Regulations 2014 (opens new window)