15

Financial viability and past policy uncertainty hinder wider adoption of Community Infrastructure Levy

Conclusion
Given that it can provide benefits for the local community, we asked the Department why more authorities were not operating the CIL, as only 52% of local authorities operate them. The Department explained that 16 Q 30 17 Q 31; C&AG’s Report, para 1.13 and Figure 4 18 C&AG’s Report, para 1.14 19 Qq 30–32 20 C&AG’s Report, para 1.7 and Figures 1 and 2 10 the CIL is not always an appropriate instrument for LPAs to use, largely because of financial viability issues and the potential for it to disincentivise development in their areas. It also reflected that some LPAs may have paused their plans to introduce the CIL while the previous government considered whether to introduce a new mandatory infrastructure levy. The Department said that, since all authorities now understood that the new levy was not going ahead, more might decide to use the CIL.21
Government Response

A response document is linked to this report, dated 19 January 2026. Response attribution to this conclusion has not been verified. Read the response document.

Addressee Bodies
HM Treasury
Timeline
Recommendation age 0.9 yr
Report published 17 Oct 2025