Chapman Lily Planning have received a number of calls from small developers asking about CIL and the opportunity for flexible payments.
Where a ‘CIL liable’ development has commenced and no exception (affordable homes, self build etc) applies the liability will continue to bite despite the fact that construction on many sites has all but stopped. As a result, many developers are being forced to borrow for extended periods and incurring additional interest on loans. We unde
rstand that this puts pressure on cash flow and jeopardises future profits.
Whilst Local Planning Authorities are able to award exemptions, state aid rules and the very real need to fund much needed local infrastructure presents a problem. Brett Spiller, Director at Chapman Lily Planning, noted ‘We are aware of at least one Local Planning Authority that is actively seeking to support developers through this crisis and is exploring how the phased payments system might be harnessed to defer payments – we wait and see whether this offers a solution. In any event, we are finding that Local Planning Authorities are taking a pragmatic approach within the boundaries of the regulations and I would urge any developers facing difficulty to speak with the local CIL Officer’.
I am sure that this will continue to be a hot topic of debate in the coming weeks.
For more information please contact us.