BPF warns of risks from from new infrastructure levy regs

BPF chief executive Liz Peace said: “We are pleased with the general direction of travel of the revised regulations, but do have some outstanding concerns. The larger changes may be so beset with caveats that they risk being rendered less than useful. The guidance is crucial to ensure that these regulations will encourage development and that the implementation is as smooth as possible.”

The BPF supported a number of the changes that were consulted upon but said that further clarity is needed on some regulations, such as Regulation 123 being extended to include S278 agreements to avoid double charging. The BPF has warned that the mechanisms of self-build relief may encourage devious practices. It has also forseen potential complications in the regulation stating that actual construction costs and fees should be used to calculate the potential offset from the payment in kind.

It has offered tentative support for charging authorities to be able to set differential rates by reference to use and scale of development, and has pointed out that it will be increasingly important to challenge rates that are being set at unrealistic levels in order to prevent certain types of development.

“Although delighted to see payment in kind mechanisms introduced in theory, in practice, concern remains over whether the suggested restrictions in the infrastructure that could be provided will be too restrictive, and will, as a result, never be used,” it said.

The BPF was disappointed to see a number of regulations that were not taken forward, including that a new 123 list could only be brought forward after consultation, and that the consultation period on the draft charging schedule has not been extended from four to six weeks.

It was also disappointed to see that the phasing of CIL payment will make adequate provision in relation to site preparation has been taken forward. The BPF said that it believes the cash flow implications arising from the liability arising from a “material operation” are serious and prohibitive.

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