2019/20 Infrastructure Funding Statement

Introduction

About this statement

This report provides a summary of the financial contributions that Redbridge Council has secured through the Community Infrastructure Levy (CIL) and Section 106 agreements (S106).

The Infrastructure Funding Statement (IFS) sets out this year’s income and expenditure relating to the CIL and S106 agreements.

Local Authorities are now required under amendments to the regulations (The Community Infrastructure Levy (Amendment) (England) Regulations 2019 No.1103 that came into force 1 September 2019) to produce an Infrastructure Funding Statement annually thatsets out details about planning obligation receipts and anticipated expenditure, alongside a statement of its spending priorities. 

This is to provide clarity and transparency to local communities and developers on the infrastructure and expenditure and in aligning this to planned development, as envisaged in the Local Plan. This is Redbridge’s first IFS. 

CIL and S106 together are known as planning obligations or developer contributions. These are levies or chares applied to development projects across the borough to help fund a portion of the infrastructure required to deliver these places. The income is used to help fund the provision of supporting infrastructure in association with development and maximise the benefits and opportunities from growth such as employment and affordable homes.

The information included in the report will be updated annually and published on the Council’s website. This will ensure the most up to date information on the amount of developer contributions received from new developments in addition to information on where these monies have been spent is readily available to members of the public and other interested parties.

This version of the report does not include information on the infrastructure delivered on site as part of new developments in the borough, or reporting on non-monetary contributions. Data on developer contributions is imperfect because it represents estimates at a given point in time and can be subject to change. However, the data reported within this document is the most robust available at the time of publication.

Community infrastructure levy and section 106 agreements

CIL is a tariff-based charged on the development of net new floorspace per square metre in the borough. The tariff is set by borough in its community infrastructure levy charging schedule and is indexed each year to grow with inflation.

Section 106 agreements are utilised to mitigate the impacts of developments and ensure that Redbridge’s planning policy requirements, specifically around affordable housing are met.

Under S106 of the Town and Country Planning Act 1990 a Local Planning Authority (LPA) can seek contributions, both physical and financial to offset a negative externality or impact that a development will have on the community and cannot be dealt with through conditions in the planning permission.

Community Infrastructure Levy

Types of CIL

There are two main types of CIL in Redbridge.

• Redbridge CIL: A standard charge which applies to most new buildings and extensions across the borough. Exceptions to CIL charges include social housing, charitable institutions and self-build
• Mayoral CIL: A standard charge which applies to most new development across Greater London is used to help fund Crossrail

Within Redbridge, of the total CIL amount collected, 5% is retained for administrative purposes. Of the remaining 95% an additional 15% is retained for the neighbourhood proportion of CIL (which is used to fund local projects for which residents and organisations can submit ideas and suggestions). As such 80% of the total CIL collected is retained by the Council to fund infrastructure. 

Redbridge CIL Income

The amount of CIL payable is based on a single set figure as per the Redbridge Charging Schedule. The Redbridge Charging Schedule and details behind the adjustments for indexing can be found on the website. 

The table below provides a breakdown of the combined Redbridge CIL and Mayoral CIL receipts over the last three financial years. This data was calculated using the value of invoices raised offset against outstanding amounts.

Table 1: CIL Income Since 2017/18 

Year	Amount Received £m
2017/18	£1.241
2018/19	£2.141
2019/20	£2.273

Any existing CIL monies that require allocation to existing projects and commitments, i.e. those which have already been approved by Cabinet, will be assigned by officers from the relevant Council departments under existing arrangements as permitted under the Council’s Standing Orders.

Section 106 agreements

S106 Held by the Council

Going into the 2019/20 year the Council had S106 reserves of £9.901m available and mainly allocated for the following items.

Table 2: S106 held by the Council

Infrastructure Type	Balance as of 2018/19 £m
Highways	0.246
Communities	0.216
Education	0.614
Open Space	0.057
Other	0.122
Public Art	0.218
Health	0.616
Monitoring	0.021
Affordable Housing	7.684
Employment	0.092
Libraries	0.015

Any existing S106 monies that require allocation to existing projects and commitments, i.e. those which have already been approved by Cabinet, will be assigned by officers from the relevant Council departments under existing arrangements as permitted under the Council’s Standing Orders.

The affordable housing money is allocated at the Housing Programme Board.

Section 106 financial contributions received

Looking into the S106 activity for 2019/20, the Council received a total of £0.744 in S106 contributions for the financial year.

Table 3: S106 Monies received in 2019/20

Infrastructure Type	S106 Monies Received £m
Affordable Housing	£0.140
Highways	£0.486
Community/Social	£0.118
Total	£0.744

Section 106 spending

Table 4: S106 Monies Spent on 2019/20

Infrastructure Type	S106 Monies Spent
Highways	£0.011
Public Art	£0.029
Monitoring	£0.020
Employment	£0.092
Total	£0.152

Infrastructure List

The list below sets out the infrastructure projects, or types of infrastructure, that the Council
intends to fund wholly or in part by the Levy.

• Green infrastructure, public realm and play space
• Transport improvements
• Leisure
• Education
• Health care
• Libraries
• Community care facilities
• Community facilities
• Public art