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Funding for local projects 2020 to 2021

Funding for local projects 2020 to 2021

How funding will be given to local areas from the Community Infrastructure Levy and Section 106 agreements

Community Infrastructure Levy (CIL) and the Section 106 (S106) agreements

As part of the planning  process, a developer often has to give money to the council to pay for improvements in the area that they’re developing in.

This is usually through a planning charge called the Community Infrastructure Levy (CIL) but is sometimes through a planning obligation called a Section 106 agreement.

80% of the money that’s raised is used to pay for city-wide projects improving things like roads and schools.  

15% of CIL funds and relevant local S106 funds are made available for local decision making by councillors. This is particularly so for highways improvements, parks improvements and tree planting funds.

Areas with a Neighbourhood Development Plan (NDP) receive 25% of CIL funds raised within their area to support the priorities they've identified. Local councillors allocate the funds to support local priority projects, such as improving community centres or parks.

Covid19: suspension of CIL proposal process in 2020 

The decision has been taken to pause the local/devolved CIL 2020.

This is because of the current coronavirus situation on both CIL income and council capacity. This decision was made following a consultation with members of Cabinet and Area CIL Chairs. 

The levels of CIL income have been affected by Covid 19-related delays to development projects in the city. Because of this the Government is encouraging local authorities to defer payment of CIL.

This means we will not be accepting any new proposals for local CIL for 2020.

In the case of tree planting proposals, which have a non-CIL budget (Section 106 monies) and which can continue, we will aim to ensure that decision making processes are in place to enable them to happen. 

The following information is for reference on the annual CIL/S106 process, but no longer applies in 2020.

Amount of available funds

The amount of funds depends on the number of new developments that are taking place in each of the areas covered by the six area committees.

CIL money is paid to the council throughout the year so each area’s CIL fund increases every month.

Local CIL money can be spent anywhere in the area covered by that area committee. S106 money spend has to fulfil the terms of the legal agreement between the developer and the council.

Our monthly reports show how much planning money is available for each area committee to spend, what funds have been committed and what each S106 purpose is:    

Who decides how the money gets spent

Councillors make decisions about these local funds once a year in the city’s six area committees

The councillors work with the local communities in their wards to help them identify and prioritise neighbourhood improvements to fund with the CIL and S106 money that's available to them. 

In the Areas where there is insufficient funding available this year, councillors and communities are still encouraged to meet to discuss area prioirities. They should also think ahead to future years and alternative or additional sources of funding. 

How the area committees decide what to do with the funding 

The six area committees will decide on their priorities once a year. The decisions will be made in three stages.

Timeline to show decision making by area committees (pdf, 190KB) (opens new window) .

Stage 1: January  to July 

January to March: Local residents and groups can suggest ideas to improve their neighbourhood by

  • emailing your local committee or 
  • attending a community meeting where local councillors are present

Project ideas should be set out briefly on an Outline Project Proposal form. The guidance and proposal form is below. 

All Outline Project Proposals need to be approved in principle by the local ward councillors.

You should send ideas to your councillor and by email to your area committee by mid-March.

Ward councillors will:

  • make sure the outline proposal forms (stage 1) are completed
  • ask for more information if required 
  • then confirm their ‘in principle’ support for the idea and submit it

The deadline for outline proposal forms (stage 1) is early April. 

May to June:

There will be an opportunity for local residents to play a role in prioritising which of the proposed projects should be taken forward in their ward through community events. 

July:

Councillors in the area committee will meet to:

  • look at the priority projects
  • agree which ones they want to put forward into Stage 2
  • think about how to spread the projects across their Area Committee area
  • discuss how much CIL and S106 money they have to allocate
  • discuss how the projects will improve their communities

Anyone who proposes a project will be told about the area committee’s decisions, even if they haven't been successful.

Stage 2: August to October 

All projects progressed to Stage 2 will be developed into a full project proposal by the organisations responsible for delivering them.  

A full proposal will have information such as how:

  • much the project will cost
  • long the work will take
  • the project meets the CIL and/or S106 criteria
  • we will show it’s worked
  • it will benefit people from disadvantaged groups 

Area committee members will then decide if they should approve CIL and S106 funds to a project.

They’ll also decide if they want to put any conditions on how the project is delivered, such as getting the organisation to consult with the community on their improvements.

Stage 3

Funds will be given to projects after all the paperwork has been done.

How you can get involved

If you want to get involved you can: