Infrastructure Contributions provide funding for public services like education, open spaces, sports facilities and biodiversity conservation/net gain. These payments are theoretically paid for by the uplift in land value generated by the grant of planning consent.
The validity of requests for infrastructure contributions is to be judged by reference to CIL rule 122(2) which provides:
A planning obligation may only constitute a reason for granting planning permission for the development if the obligation is—
(a) necessary to make the development acceptable in planning terms;
(b) directly related to the development; and
(c) fairly and reasonably related in scale and kind to the development.
Further, following PPG Viability para 029, ‘The total cumulative cost of all relevant policies should not be of a scale that will make development unviable.’
Our viability reports examine whether the request is fairly and reasonably related in scale and kind to the development by applying the same viability principles that we use when considering affordable housing requests.
We will also interrogate the Council’s policies and evidence base to determine if all sought contributions are ‘necessary’ and ‘directly related’ to the development.
On many occasions the development will be sufficiently viable to provide some contribution towards both Infrastructure and Affordable Housing, but not the full amount sought by policy.
In those circumstances we seek to negotiate an overall package which satisfies the LPA whilst preserving the underlying viability of the development scheme.
If you find yourself in this situation – please call us for a free no obligation consultation.