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Planning Advisory Service (PAS)
Open group | Started - July 2012 | Last activity - This week

MEANINGFUL PROPORTION

REBECCA STADDON, modified 8 Years ago.

MEANINGFUL PROPORTION

Advocate Posts: 103 Join Date: 05/09/13 Recent Posts

Hi all,

I am looking for some advice please regarding Parish Council Meaningful Proportion payments.

Theoretical Scenario:

2 neighbouring Parish Councils - A and B

Parish A adopts a Neighbourhood Plan that contains some land within Parish B's boundary. They have Parish B's permission.

Parish A will now receive 25% meaningful proportion.

What will Parish B get? I feel that they would still get 15% capped because they don't have a Neighbourhood Plan in place?

Also if development takes place on the piece of land in Parish B that is included in Parish A's Neighbourhood Plan I feel that this would still generate 15% capped meaningful proportion to Parish B and nothing to Parish A. Am I right?

Thanks in advance.

Bex

Andrew Chalmers, modified 8 Years ago.

RE: MEANINGFUL PROPORTION

Advocate Posts: 169 Join Date: 20/10/11 Recent Posts

Rebecca there is some useful advice within the section of NPPG on how to apply CIL and contributions arising from developments which cross boundaries (paragraph: 076 Reference ID: 25-076-20140612) which you will already certainly have read.

http://planningguidance.planningportal.gov.uk/blog/guidance/community-infrastructure-levy/spending-the-levy/

It may be worth looking at the few neighbourhood plans that have been approved already in case any cross boundary issues have been considered.

As you will know regulation 59A states... that (3) In England, where all or part of a chargeable development is within an area that has a neighbourhood development plan in place the charging authority must pass 25 per cent of the relevant CIL receipts to the parish council for that area.  In the case of parish A this is the case - 25% of CIL receipts from developments (within both plan and parish).

Guidance is clear that a proportion of receipts is returned to the area where the development takes place.  So receipts arising from development within parish B will go back to parish B.  Looking again at NPPG paragraph: 076 Reference ID: 25-076-20140612 suggests to me that you need to check what development falls within the plan area in parish B and this would be rewarded at 25%.  Outside the plan area in parish B it would be 15%.

 

 

 

 

  

Alison Richards, modified 7 Years ago.

RE: MEANINGFUL PROPORTION

New Member Posts: 9 Join Date: 17/09/15 Recent Posts

On a similar note, I understand that the the amount which goes to parishes is based on the GIA of the development, and does not take into account any demolition or reliefs. Therefore theoretically you could have a market housing development of 1000 sq m with 900 sq m demolition meaning the charging authority's income is minimal, but the 15% or 25% payable to the Parish is based on the 1000 sq m granted permission. If I am correct, does this also apply to any affordable housing on a development, ie the meaningful proportion takes into account this floorspace even though this type of development is exempt? 

The more I learn the less I think I know! Any advice very welcome.

 

REBECCA STADDON, modified 7 Years ago.

RE: MEANINGFUL PROPORTION

Advocate Posts: 103 Join Date: 05/09/13 Recent Posts

Alison,

That is not my understanding of Meaningful Proportion.

Reg 59A refers to 25% and 15% of relevant CIL receipts. Therefore the Parish Council gets a percentage of the CIL paid (receipted).

Rebecca 

Alison Richards, modified 7 Years ago.

RE: MEANINGFUL PROPORTION

New Member Posts: 9 Join Date: 17/09/15 Recent Posts

Hi Rebecca

Yes it does but if you look at 59A (8) it states that 'In paragraphs (3)-(6) the relevant CIL receipts are the proportion of CIL received in relation to a development equal to the proportion of gross internal area of the development that is relevant development in the relevant area of the local council'. My issue is that it says 'gross' so does that mean you even have to pay the meaningful proportion to the Parish based on the gross area which may include affordable housing for which the charging authortiy has received no CIL income?

Alison

REBECCA STADDON, modified 7 Years ago.

RE: MEANINGFUL PROPORTION

Advocate Posts: 103 Join Date: 05/09/13 Recent Posts

Alison,

I think the important words here are receipt and received.

You only pay the Meaningful Proportion on actual CIL money received (including land and infrastructure payments).

We use the Exacom system and each time I receive a CIL payment it splits it into 5% admin top slice, 15% Meaningful Proportion (we have no neighbourhood plans) and the strategic CIl payment. 

Rebecca