What do developers contribute financially towards new infrastructure and how can we be sure that their contributions are made?
Funding for public infrastructure is gathered in two ways; one is through the Community Infrastructure Levy, the other is through what is called a Section 106 legal agreement.
• Community Infrastructure Levy. This is a sliding scale fee which is collected from developers when a development starts to be built. This money is then pooled by the CPBC, and helps to fund the infrastructure, facilities and services which will be needed to support the new homes and businesses in the areas. This levy was introduced by the current Independent administration, and should have been brought in much earlier by the previous Conservative administration, meaning the opportunity of gaining extra revenue for infrastructure has been lost.
• Section 106. These are payments which are made to pay for specific types of infrastructure that is needed to ensure that a development proposal is acceptable. These are secured by legal agreement and must be paid at the time specified in that agreement. It may be for example that early payment is made to improve a highway junction or local school, but a later payment is made to help provide for an element of affordable housing.