Environmental Engineering Reference
In-Depth Information
All types of growth area mentioned so far are also eligible for awards from the
Community Infrastructure Fund (CIF). CIF was introduced as part of the 2004
Spending Review and uniquely links the funding of transport infrastructure to the
delivery of housing. It is designed to complement mainstream transport funding so
as to facilitate or accelerate housing development or to improve the sustainability of
main locations of housing growth. The Fund is administered by DCLG but decisions
on supported schemes are made jointly by Ministers from DCLG and DfT.
As part of spending plans for 2008/09-2010/11, £300m has been allocated for a
second round of CIF. Of this £100m has already been earmarked for 13 local transport
schemes in the Thames Gateway, leaving the remaining £200m for schemes in the
other Growth Areas, Growth Points and Eco-towns (DCLG 2008a). Unlike Growth
Funds CIF2 funding is available only for specific projects (possibly in combination with
other funding sources). Schemes must be able to be completed by March 2011 (or
have remaining funding secured thereafter).
Funding for transport and other infrastructure associated with new development
may of course be derived from section 106 agreements with the developers concerned.
However for larger developments in particular there can be a number of difficulties
with this as a funding source. For example the scale of funding required for transport
infrastructure may be more than the proposed development can support financially,
especially if there is already an 'infrastructure deficit' in the locality. If an area is
developed in phases it may also be difficult to secure the necessary contributions at
each stage which enables the overall infrastructure requirement to be funded and
delivered in a manner and at a time which matches the pattern of development.
To address the particular issue of timing, an innovation is being pioneered by the
South West region in the form of a Regional Infrastructure Fund as part of its RFA. This
enables money to be advanced for the facilities needed to serve major development
areas, which is then recouped from s106 contributions as the development proceeds,
and 'recycled' to support future development.
Together however these arrangements make for a complex mix as far as the overall
planning of development and transport infrastructure is concerned. Funding through
CIF is short term and unpredictable whilst developer contributions are uncertain and
do not necessarily arise in the places where investment is most needed. (A developer
may be able to 'piggy-back' on recent public investment in one part of a town whilst
new investment is needed in another part.) Since publication of the Sustainable
Communities Plan the Government has acknowledged the need for more fundamental
reform.
As part of the current Planning Bill the Government is legislating for powers to
enable a local Community Infrastructure Levy to be operated by planning authorities
in England and Wales. This follows experience with so-called 'tariff' schemes pioneered
by individual authorities under which developers have been charged a standard rate
per dwelling or per unit floorspace to pay for ancillary facilities. In areas where such
levies are applied, planning obligations are scaled back to 'direct impact mitigation'
and affordable housing requirements only. Previously the Government had intended
to source more general funding for facilities through imposition of a 'Planning Gain
Supplement' (PGS). The Community Infrastructure Levy (CIL) is different in that
a
it is open to individual authorities whether to operate a levy (if they do not then
present wholly negotiated arrangements will continue to apply)
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