Infrastructure Funding Statement

Overview

1.1       The Wiltshire Core Strategy (Local Plan) (Adopted 2015) provides for at least 42,000 homes and approximately 178 ha of employment land in Wiltshire from 2006 to 2026. To support this growth, a large amount of infrastructure will be required. However, the Local Plan is currently under review, which is at an advanced stage having been submitted for examination in November 2024.

1.2       The Community Infrastructure Levy (CIL) will be used alongside other sources of funding, such as Section 106 planning obligations, grants and borrowing, to deliver the infrastructure necessary to support development.

1.3       This Infrastructure Funding Statement (IFS) reports on Section 106 and CIL collected and spent during the period between 1 April 2023 and 31 March 2024.

1.4       The IFS outlines Wiltshire Council's future spending priorities for developer contributions.

1.5       The council has prioritised and allocated the spending of CIL according to governance arrangements and criteria originally approved by Cabinet on 14 March 2017 and subsequently updated on 27 September 2021. In line with the criteria, Cabinet considers bids for CIL funding on a periodic basis.

1.6       The Infrastructure Delivery Plan (IDP) is periodically updated, most recently in September 2023 to support the review of the Local Plan, and provides further information on infrastructure to support growth, including projects referred to in the IFS.

1.7       Chapter Two summarises the collection and expenditure of Section 106 Planning Obligations. Appendix A provides details of Section 106 contributions from individual developments in a spreadsheet format.

1.8       Chapter Three summarises the collection and expenditure of CIL. Appendix B provides details of CIL contributions from individual developments in a spreadsheet format.

1.9       Chapter Three discusses future spending priorities and projected income for CIL. Appendix C is the CIL Infrastructure List, which sets out infrastructure projects that may be funded, in whole or in part, through CIL.

Section 106 Planning Obligations

1.10      A planning obligation may be required by the Council to:

• Manage the mix of development, for example, securing that a proportion of the housing must be affordable.
• Compensate for the loss or damage caused by the development, for example, loss of hedgerow.
• Mitigate a development's impact, for example, increase public transport provision.

1.11       To mitigate the impacts of development, planning obligations can be:

• Financial obligations requiring monetary contributions to the local authority to fund works or services, and
• In-kind obligations requiring specific actions to be performed by specific parties.

1.12       The council can secure planning obligations through a legal agreement (under section 106 of the Town and Country Planning Act 1990) with an applicant. Or it will expect the applicant to enter into a unilateral undertaking, which is a type of planning obligation provided directly by the applicant. A planning obligation is attached to the land, which means that it will remain enforceable even when the land is sold.

1.13       Regulation 122 of the CIL Regulations 2010 (as amended) sets out three statutory tests for planning obligations, namely that:

1.14       "A planning obligation may only constitute a reason for granting planning permission for the development if the obligation is:

• Necessary to make the development acceptable in planning terms,
• Directly related to the development; and
• Fairly and reasonably related in scale and kind to the development."

1.15       The CIL Regulations (2019) abolished Regulation 123, thereby removing the 'double-dipping' and 'pooling' restrictions that had prevented Local Planning Authorities from spending section 106 and CIL on the same infrastructure type or project, or from using more than five separate planning obligations towards an infrastructure type or project capable of being funded by CIL.

Community Infrastructure Levy

1.16       CIL is a fixed, non-negotiable charge on new development. The amount is based upon the size of a development and is charged in pounds per square metre. It varies according to the type of development (e.g., residential, retail or employment uses) and in which area of Wiltshire the development takes place. The CIL Charging Schedule sets out the CIL rates that apply to different types of development in different parts of the county.

1.17       CIL applies to development that creates net additional floorspace (measured as Gross Internal Area) of at least 100 square metres. Development of less than 100 square metres is also liable for CIL if it involves the creation of at least one new dwelling. CIL is calculated at the same time as planning permission is granted on a Full or Reserved Matters application. It is payable upon commencement of development in line with the charging authority's proposed instalments policy. There are several types of development that do not pay CIL, by virtue of the rates being £0, and these are listed in the Charging Schedule.

1.18       CIL payments must be index linked from the year that CIL was introduced to the year that planning permissions are granted. The index we must use is the national RICS Community Infrastructure Levy (CIL) Index, published by the Build Cost Information Service (BCIS).

1.19       CIL will be used to help fund infrastructure projects on the Infrastructure List. These projects are taken from the IDP, which identifies infrastructure necessary to deliver housing and employment development in the Core Strategy. The intention behind CIL is that it will contribute towards the funding of infrastructure to support the cumulative impact of development across the county. Planning obligations will be used to mitigate the site-specific impact of development and deliver affordable housing.

1.20       A broad definition of 'infrastructure' for the purposes of CIL funding is set out in section 216(2) of the Planning Act 2008 and includes:

• Roads and other transport facilities
• Flood defences
• Schools and other education facilities
• Medical facilities
• Sporting and recreational facilities
• Open spaces

1.21       The council must pass at least 15% of CIL, capped at £100 per council tax rateable dwelling and indexed for inflation, to the parish council in whose area the development takes place. In areas covered by a 'made' neighbourhood plan, this amount rises to 25% of CIL, uncapped, from development. Up to 5% of CIL received can be used to cover the council's CIL administration costs.