Planning obligations - CIL and S106
Section 106 agreements and the Community Infrastructure Levy (CIL) (collectively known as planning obligations) are used to reduce the impacts arising from development, and secure the provision of supporting infrastructure, such as new schools, health facilities and open spaces. This ensures that development can be made acceptable in planning terms.
Community Infrastructure Levy
The Community Infrastructure Levy (CIL) is a tariff-based charge that applies to most new development in the borough. Money collected from the levy is used towards the provision of essential infrastructure to support the future growth of the borough.
Section 106 agreements
Section 106 agreements are used alongside the levy to reduce the impact of development in association with planning applications. Most agreements are site-specific and relate to the requirements set out in the Section 106 Supplementary Planning Document (PDF, 2762.17 KB).
Infrastructure funding
The Infrastructure Funding Statement sets out the types of infrastructure and projects we intend to fund through CIL and Section 106 income over the next reporting period. It also provides a breakdown of CIL and Section 106 income and expenditure over the last financial period, in line with the CIL regulations 2010 (as amended) Regulation 121A and Schedule 2.
View the details relating to the Infrastructure Funding Statement 2022/23 (PDF, 13017.74 KB) and the Infrastructure Funding Statement 2022/23 Appendices (PDF, 1054.13 KB).
Previous infrastructure funding statements
Types of Community Infrastructure Levy
In Enfield, the Community Infrastructure Levy (CIL) is split into two types.
Enfield CIL
Each year, we collect receipts from residential and other types of development to help fund infrastructure (although there are some exceptions, such as schools, health facilities and self-build housing). The way this is broken down is shown in the table below.
Type | Percentage of total receipts | Commentary |
---|---|---|
Strategic | 80% | Receipts can only be spent on capital projects to fund a wide range of infrastructure projects |
Neighbourhood | 15% (or up to 25% in a neighbourhood planning area) | Receipts can be spent on both capital projects and revenue projects, such as the maintenance of infrastructure. However, it does not have to be spent in the same area as the development. |
Administration | 5% | This covers administrative expenses (for example, staff costs) |
Mayoral CIL
We also collect receipts on behalf of the Mayor of London. Funds raised through the levy are used to help pay towards Crossrail 2.
CIL costs
How much the Community Infrastructure Levy costs
The Mayoral CIL is charged at £60 per square metre across the borough.
The Enfield CIL is added to the Mayoral CIL. The Enfield CIL is composed of different rates, set according to the type of use and location of certain developments.
The Enfield CIL Charging Schedule (PDF, 2768.17 KB) sets out the rates to calculate costs.
The levy amount charged is based on the total internal floorspace (gross) of the proposed development.
Rates are index-linked to track inflation costs and reflect changes in the cost of delivering infrastructure. This ensures the rate is responsive to market conditions.
A map showing the charging zones across the borough, relating to residential development, can be viewed in the Residential CIL Charging Zones Map (PDF, 3712.9 KB).
Planning applications require the payment of CIL where it involves new build floor area, and or new residential units within the charging zones.
Annual CIL rate summary
The annual CIL rate summary sets out the charging schedule rates, indexed between the time the charging schedule came into effect and when a planning permission is granted in a given calendar year.
View the summary for each year, from 2020 being the first reported year:
- Annual CIL rate summary 2020 (PDF, 694.46 KB)
- Annual CIL rate summary 2021 (PDF, 693.67 KB)
- Annual CIL rate summary 2022 (PDF, 694.74 KB)
- Annual CIL rate summary 2023 (PDF, 685.61 KB)
- Annual CIL rate summary 2024 (PDF, 285.6 KB)
How CIL is calculated
You can use the CIL calculator to help establish potential CIL charges.
CIL notices, charges and appeals
Liability for Community Infrastructure Levy charges
When planning permission is granted for a CIL-liable development, we will issue a CIL liability notice alongside the planning decision notice. The CIL liability notice will tell you the amount of CIL you need to pay before you start development. If you do not need planning permission and you start development (under general consent or prior approval), you may still need to pay CIL if:
- the development comprises 100 square metres or more of new floor space, or
- the development comprises one or more new dwellings
If your proposal meets any of the requirements for the payment of CIL, then you will need to complete the additional information form on the Planning Portal.
Where CIL charges do not apply
A CIL charge will not apply in the following circumstances:
- development of less than 100 square metres (unless a whole dwelling)
- houses, flats, residential annexes and residential extensions built by 'self-builders' (subject to meeting the relief criteria and submission of a valid claim form prior to commencement)
- social housing (subject to meeting the relief criteria and submission of a valid claim form prior to commencement)
- charitable development (subject to meeting the relief criteria and submission of a valid claim prior to commencement)
- vacant buildings brought back into the same use
- change of use, conversion and sub-division, where the building has been in continuous lawful use for six months within the three-year period prior to planning permission, and does not create any new floor space
- structures, such as pylons and wind turbines
- new buildings granted planning permission before April 2013, by way of a general consent
- buildings, such as electricity sub stations, that people only use for maintenance purposes
- mezzanine floors inserted into an existing building (unless they form part of a wider planning permission that seeks to provide other works as well)
Before you begin development
Before development starts, the person paying the CIL needs to submit a commencement notice (PDF) and an assumption of liability notice (PDF) to cil@enfield.gov.uk. If we don't receive these, the charge automatically defaults to the owners of the land. A surcharge may apply to each person(s) liable to pay the levy if development starts before liability is assumed.
On receipt of the commencement notice, we will issue a demand notice seeking payment.
Instalment policy
The Enfield CIL instalment policy (PDF, 31.17 KB) applies to larger developments and explains when CIL payments will need to be paid across the timeframe of a development. As set out in the revised policy (PDF, 37.34 KB), the threshold that developers pay towards CIL can be split into two instalments from £500,001 to £100,001.
For more information about CIL, please read the guidance on Planning Portal. More information can also be found on the Planning Advisory Service.
Appeals
You can make appeals against all aspects of the Community Infrastructure Levy, including the chargeable amount and the imposition of surcharges.
Advice on how to appeal and all the relevant forms can be found on the GOV.UK.
How CIL is allocated and spent
Community Infrastructure Levy (CIL) spending is decided on an annual basis. Spending is allocated to support infrastructure projects that are in line with the priorities set out the capital programme (taking account of the specific and cumulative needs arising from development). For example, over £156 million of funding has been secured from the government's Housing Infrastructure Fund to undertake further essential infrastructure works at Meridian Water. This includes the construction of a new central spine road and associated bridges to improve east-west connectivity across the site and beyond. The project requires match funding to secure its early delivery as part of phase 2 of the development. CIL will support this.
CIL receipts will also be made available through the capital programme to spend, in whole or in part, on the following items of infrastructure:
- public realm improvements within estate regeneration schemes and town centres
- sustainable transport (healthy streets and liveable communities)
- open spaces (cemeteries and burial space)
CIL can now be used to fund a wider range of projects (rather than specific items) and can be pooled together alongside Section 106 agreements to fund the same project or item of infrastructure.
The Infrastructure Funding Statement sets out how much CIL has been collected over the past year and how it will be prioritised over the next reporting period. This statement replaces the Regulation 123 List.
Section 106
Section 106 is a legally-binding agreement that is negotiated between us and the developer to mitigate the impacts of development on a site-specific basis. S106 is used to secure financial contributions towards the provision of infrastructure, such as:
- education provision (for example, primary and secondary schools)
- provision or adoption of new highways and public rights of way, and
- creation, maintenance and adoption of open space and recreation facilities
S106 can also provide non-monetary benefits (for example, affordable housing, apprenticeships and travel plans).
Most planning obligations will involve payment of a one-off fee. However, depending on the specific nature of a scheme, contributions may be required towards the ongoing costs of running a facility or providing a service (for example, maintenance of parks and air quality monitoring).
When S106 agreements are used
Section 106 agreements can only be used where they are:
- necessary to make a development acceptable in planning terms
- directly related to the development, and
- related in scale and kind to the development
S106 agreements are negotiated as part of the approval process in respect of outline or detailed planning permissions (but not reserved matters). Payments are usually paid in instalments at specific agreed stages of the construction process (known as 'trigger points').
However, planning permission will only be granted once the Section 106 agreement has been signed.
The Section 106 Supplementary Planning Document (PDF, 2762.17 KB) (adopted in November 2016) sets out our approach to negotiating Section 106 agreements.
For residential developments, financial and non-monetary contributions are generally sought on developments of ten or more units, irrespective of floorspace.
For commercial developments, financial and non-monetary contributions will generally be sought on developments of more than 1000 square metres.
There may, however, be instances where contributions are sought to mitigate the impact of smaller developments on the highway, public realm or where there has been a loss of retail or employment.
Fees
You should note that the following fees are charged in respect of the administration and monitoring of Section 106 agreements:
- up to 5% of the total value of financial contributions
- a fixed charge to manage non-monetary obligations of £350 per obligation
- a separate one-off fee of £250 (in respect of variations to the original S106 agreement)
How S106 monies are allocated and spent
Recent changes to the regulations have introduced greater flexibility in how Section 106 monies can be spent. For instance, Section 106 monies can now be pooled together from a greater range of planning applications to fund the same project alongside Community Infrastructure Levy and other sources of funding.
Details relating to Section 106 income and expenditure can be found in the Infrastructure Funding Statement.
Much of our planned spending will be focused on small-scale improvement works to directly mitigate the impact of development. This includes:
- supporting supply chains, apprenticeships and local employment opportunities (through the Build Enfield programme)
- improvements to cycle lanes and routes
- highway and streetscape improvement schemes (for example, new pedestrian crossings and junction improvements) as part of the healthy streets agenda
- school expansion schemes that will serve borough-wide needs including the specialist provision
Discretionary Social Housing Relief
Following consultation from 17 November 2022 to 1 December 2022, the Discretionary Social Housing Relief (DSHR) policy has now been adopted on 10 January 2023 within the London Borough of Enfield under Regulations 49A and 49B.
The policy will allow the Council to grant relief from the Community Infrastructure Levy (CIL) charge on qualifying developments in certain circumstances. This policy specifically introduces relief from CIL on Discounted Market Sales homes sold for no less than 70% and no more than 80% of their market value.
Any homes sold for less than 70% market value can apply for Mandatory Social Housing Relief under Regulation 49 (7B).
Any homes sold for more than 80% of their market value cannot obtain Social Housing Relief under the above regulations.
In both cases (Mandatory and Discretionary Social Housing Relief), a requirement to enter into a planning obligation prior to the first sale of the dwelling designed to ensure that any subsequent sale of the dwelling is for no more than 70% (Mandatory), 80% (Discretionary), of its market value. This should be considered during the planning application stage.
All relief claims must be made after a CIL Liability Notice has been issued and prior to commencement. Should a disqualifying event occur then the CIL will become payable with penalties.
The DSHR policy (PDF, 120.14 KB) aims to encourage and support the delivery of affordable housing in the borough.
Contacts
S106 enquiries:
- Email - s106@enfield.gov.uk
- Telephone - 020 3821 1964
CIL enquiries:
- Email - cil@enfield.gov.uk
- Telephone - 020 3821 1964