Community Infrastructure Levy revealed

The government has unveiled plans to allow local councils to raise funds to spend on infrastructure projects to support new housing developments.

Councils who back new housing schemes will be permitted to raise funds from developers through the new Community Infrastructure Levy (CIL) to build roads, schools, parks and health centres.

Ministers believe it is essential new developments have parks, play areas and proper facilities and more is done to ease transport pressures when new homes are built.

The government is also keen to ensure small developments, which can have a cumulative impact on areas, make a contribution to local infrastructure and facilities.

At present only 14 per cent of residential developments receive any contribution from housebuilders for infrastructure – with the CIL set to increase this number.

Commenting on the proposals housing minister Yvette Cooper said: "Families across the country need more affordable homes. We want to give more support to communities and councils who are doing their bit to deliver the extra homes we need with money for vital infrastructure.

"It isn't enough to build more homes. They need to be in high quality neighbourhoods with proper infrastructure and local facilities too."

Independent evidence from Kate Barker and the National Housing and Planning Advice Unit shows that there is a long-term need for more housing to meet rising demand.

But the government now feels it is now crucial the infrastructure is also in place to create prosperous and sustainable communities.

The CIL will work in conjunction with other incentives for communities supporting new homes, including the £500 million Housing and Planning Delivery Grant (HPDG) and the £1.7 billion housing infrastructure investment from the department

"I want this new community levy to give councils and communities the extra support they need to do their bit to improve their area for families and for the future," said Ms Cooper.

However, the House Builders Federation (HBF) has raised concerns the new levy would make some development untenable.

"Without clarification, every council would have a different infrastructure wishlist. The tendency for creep could start to render developments unviable," said John Stewart, HBF director of economic affairs.