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 where their development is happening.

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 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. S106 funds are often explicitly for highways improvements, parks improvements and tree planting.

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 through their area committees to support local priority projects, such as improving community centres or parks. There are six area committees that cover the city

Amount of available funds

The amount of funds depends on the number and scale 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 areas CIL fund increases every month.

Local CIL money can be spent anywhere in the area covered by an area committee and on any project which meets the criteria for the legal use of CIL (see guidance notes below). 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 citys 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 priorities. 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.

View the pdf timetable for the whole process (111 KB) .

Stage 1: January  to July 2022

January to March:

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

Project ideas should be set out briefly in 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 email outline proposal forms to your councillor and to your area committee by 4 April.

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 target date for outline proposal forms (stage 1) is 4 April 2022. 

April 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.

The deadline for councillors to prioritise projects based on community consultations is 17 June 2022.

June:

Councillors in the area committee will meet to:

  • look at the priority projects
  • 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
  • agree which ones they want to put forward into Stage 2
  • agree formal S106 tree decisions in time for winter planting season

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

At the end of stage 1, the results of those projects invited to go on to Stage 2, the projects not invited to Stage 2 and the reasons for these decisions will be published on this webpage by mid-September 2022.

Area Committee CIL/S106 informal meeting outcomes

Stage 2: August to November 2022

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
  • you will show its worked
  • it will benefit people from disadvantaged groups
  • it's responding to a COVID-19 need

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.

The target date for full proposals is 4 October 2022.

October 2022:

Technical assessments will be carried out of project proposals and councillors will be able to ask for more information if required. 

November:

Formal area committee: meetings' decision-making.

Area committees will meet and 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: December 2022 onwards

Funds will be given to projects after decisions have been made and all the paperwork has been done, such as signing funding agreements. This is usually by January 2023.

pdf Timeline to show decision making by area committees (111 KB)

How you can get involved

If you want to get involved you can:

Neighbourhood plans