14 Acknowledged

Community Infrastructure Levy (CIL) adoption remains low due to cost and viability barriers

Conclusion
The CIL was introduced through the Planning Act 2008, which gave LPAs the option to introduce a locally developed charging system. It was intended to make the system fairer, faster, and more certain and transparent. Payment by developers is generally up-front and non-negotiable, and LPAs may spend the monies on infrastructure across the local area, rather than being limited to a specific site. But there is lower take up in areas with lower land values, and it can be expensive and time-consuming to set up, creating a barrier to introduction. In November 2024, only 52% of authorities were operating the CIL.20
Government Response Summary
The government agrees and expects more local planning authorities to adopt CIL following Royal Assent of the English Devolution and Community Empowerment Bill, which will empower Mayoral Strategic Authorities to raise a Mayoral CIL. It will also continue supporting LPA capacity and capability to help them make best use of available tools.
Government Response
Acknowledged
HM Government Acknowledged
3.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2026 3.2 The Community Infrastructure Levy (CIL) is a discretionary levy, which LPAs may choose to adopt based on a range of local factors. This includes giving consideration to ensuring various forms of development remain viable in local areas, where economic factors will differ across different localities. Over half of LPAs already have a CIL in place, and the department expects that more areas will consider adopting CIL following Royal Assent to the English Devolution and Community Empowerment Bill. This Bill will give all Mayoral Strategic Authorities the power to raise a Mayoral CIL, subject to having a Spatial Development Strategy in place. 3.3 The department supports LPA capacity and capability through the PAS and through the provision of funding, including providing direct support for administration of local development contributions processes. The department will continue ongoing work with PAS to consider ways in which it can support local authorities make best use of the tools available to them, including CIL, and to support the implementation of the government’s planning reforms.
Addressee Bodies
HM Treasury
Timeline
Recommendation age 0.8 yr
Report published 17 Oct 2025