www. pas.gov.uk The Direct Financial Implications

Transcript:www. pas.gov.uk The Direct Financial Implications:
www. pas.gov.uk The Direct Financial Implications of Planning CIL Knowledge Introduction Long term Strategic Planning Carefully calculated needs assessments Business Cases Options appraisal Building political consensus Delivery routes Working with private providers 2. Opportunism & THE COMMUNITY INFRASTRUCTURE LEVY Business Rates collected + Business Rates – Why promote growth? Before… NNDR Funding level Local share level Allocated to local authority Business Rates collected + Business Rates – Why promote growth? Now… NNDR Funding level Local share level Allocated to local authority + How to Model the Financial Benefits of Planning & Growth Community Infrastructure Levy (CIL) Net additional floor space in square metres CIL Rate Set by the Council; Charging Schedule will determine rates by use Payable CIL 3 key points to remember: CIL is a one-off payment, payable by the developer at the beginning of a development (following planning permission). Replacement floor space & affordable housing do not pay CIL. Planning obligations cannot be collected to pay for items in the Reg 123 list Community Infrastructure Levy Example 3,000 sqm of new retail floorspace X £100 per sqm (your CIL rate for retail) = £300,000 CIL! Development & CIL Community Infrastructure Levy New Homes Bonus (NHB) Number of homes Private:£1,444 2013/14 National Average Band D Council Tax Rate Affordable:£1,794 + £350 supplement 6 3 key points to remember: New Homes Bonus payable from Central Government to a Council is calculated based on net increases to the Council Tax base; New Homes Bonus is an un-ringfenced funding stream; NHB is paid for six consecutive years. New Homes Bonus Example a) 100 units of market housing x £1444 x 6 (years) b) 100 units of affordable housing x £1794 x 6 (years) (a) + (b) = £1.73m Total NHB Development & NHB New Homes Bonus Business Rates – how they’re calculated Total Rateable value of property is £100k 0.471 NNDR MULTIPLIER Payable Business Rates = £47.1k Business Rates Retention (NNDR) Proportion to Central Government Payable Business Rates (RV*0.471) Proportion to Upper Tier authority % retained by Local Authority 3 key points to remember: Different uses get different Rateable Values (RV). RVs are set by the Valuation Office Agency, and are reviewed every 5 years. Business Rates are an un-ringfenced, on-going funding stream, and are payable annually; Housing does not pay business rates. Business Rates Retention Example – London Borough 1) £100,000 x 0.471 = £47,100 Payable Business Rates 2) £47,100 –