Halloween DealsAmazon USHalloween week deals: useful picks before month-endAmazon US: current deals, useful picks and tech finds.Check DealsSlow PC?RecommendedPC slow today? Run a repair scan before it gets worseResolve common Windows issues and optimize system performance.Scan NowHalloween DealsAmazon USOctober picks are moving - compare before checkoutAmazon US: current deals, useful picks and tech finds.See Picks×
BETTESWORTHConstruction
affordable housing

Infrastructure Levy explained: how England’s proposed development charge would work

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

Some links on this page are affiliate links: if you buy through them we may earn a commission, at no extra cost to you.

The Infrastructure Levy is a proposed, locally set charge on the final value of completed development in England. Each participating council would set a value threshold and a percentage rate. The charge would apply to the completed development value above that threshold, with receipts intended for infrastructure and affordable housing. It is a planning and land-value-capture mechanism—not a national flat-rate bill for consumers.

What the Infrastructure Levy is

The Infrastructure Levy is a proposed replacement or consolidation of much of England’s existing developer-contribution system. The Ministry of Housing, Communities and Local Government defined it in its 2023 technical consultation as “a locally-set, mandatory charge levied on the final value of completed development to replace the existing system of developer contributions.”

As an Amazon Associate I earn from qualifying purchases.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

The proposal is designed to make contributions more predictable while allowing councils to capture part of the land value created by planning permission and development. It would not operate as one national rate. A council would prepare its own charging schedule, with rates and thresholds reflecting local development economics, land values, infrastructure needs and affordable-housing objectives.

Because the levy is linked to the value of the finished scheme, the amount would respond to market conditions. A stronger sales market could increase liability; lower completed-development values could reduce it. The final rules, valuation method, exemptions and collection procedures would be set by legislation and each authority’s charging schedule.

#1 Best Overall
Sale
Nicpro Mechanical Carpenter Pencils for Construction (Black, Red) With Case | Deep Hole Marker Pencil Set Includes Sharpener and 26 Refills, Comfortable Grip, Heavy Duty Woodworking Tools for Architect
  • Valued Carpenter Pencil Set: You will get 2 pcs solid carpenter pencils with 26 piece 2.8 mm refills, 1 replaceable sharpener, 1 plastic storage box.The complete carpenter pencils combination allows you to finish your work faster and more easily
  • Deep Hole Marker Pencil: The deep-hole construction pencils adopts 45mm elongated tip design, which is more convenient to mark in the small hole or in other tight areas that other carpenter markers cannot reach
  • Carpenter Pencils with Sharpener: The sharpener is screwed into the top of the work pencil, which won't get lost either. Built-in pencil sharpener that keep the lead with pointed and smooth to Improves line of sight in fine work
  • Stronger Solid Lead: This work pencil is matched with a 2.8 mm thick lead , which is much thicker and stronger during the drawing process of construction work, it will not break or damage easily
  • Marks on Various Surfaces: 3 colors solid construction pencil can marks on various surfaces,such as metal, plastic, wood, paper etc. Ideals for woodworkers, contractors, craftsmen, builders, merchants and masons

How the charge would be calculated

The proposed design has four core elements:

  1. A local charging schedule: the council sets the applicable threshold, percentage rate, zones and development categories.
  2. A minimum value threshold: expressed on a pounds-per-square-metre basis. Value at or below the threshold would not attract the levy.
  3. A percentage rate: applied to the gross development value above the threshold.
  4. A completion-based valuation: liability is tied to the value of the completed development rather than being fixed solely by the value estimated when permission is granted.

The consultation’s illustration shows the principle. If a council set a threshold of £1,500 per square metre and the completed development were valued at £2,500 per square metre, only the £1,000 per-square-metre amount above the threshold would enter the levy calculation. The example is not a proposed national threshold or rate.

In simplified form, the charge would depend on the area included in the valuation, the difference between completed value per square metre and the local threshold, and the percentage rate. The exact treatment of floorspace, existing buildings, phasing, deductions, residential and commercial values, and changes during construction would depend on the final regulations and schedule.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

Why the completion date matters

Under this model, the value used for liability is assessed when development is completed. That creates a direct connection between the contribution and the value actually delivered, but it also means developers need to manage valuation and market risk through the project. A scheme whose sale values increase may produce a larger levy than an early appraisal suggested; a downturn may have the opposite effect.

Different rates for different places and schemes

A council may vary thresholds and rates by development use, brownfield or greenfield typology, and charging zone. For example, a high-value central zone could have a different schedule from a lower-value area, while a brownfield redevelopment could be treated differently from a greenfield scheme. Any variation must be considered alongside development viability and the authority’s affordable-housing outcomes.

Who sets the levy and who pays it?

The local planning authority would set the charging schedule within the national framework. The authority would also administer collection and publish how receipts are intended to be used. The levy is mandatory where the new system has been implemented, unlike the current Community Infrastructure Levy, which councils may choose to adopt.

In practical terms, the development bringing forward the permission carries the liability. The contract between a landowner, developer, funder and contractor may allocate the economic cost differently, but those private arrangements do not change the council’s statutory collection rules. A contractor should therefore establish who is responsible for the levy in the development agreement and how payment dates affect the project cash flow.

Free tools Windows power users keep installed

One-click scans. No signup required.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

The levy is not a charge sent directly to every homebuyer or resident. It is a planning obligation attached to qualifying development, with its cost ultimately influencing land value, scheme viability, development finance and pricing decisions.

Rank #2
Sale
DEWALT 20V MAX Drill and Impact Driver (DCK240C2) | Includes 2 Batteries, Charger and Bag (
  • Ergonomically Designed: Work in tight areas with a compact design that gets into tough spots
  • Both tools are designed to fit into difficult to reach spaces
  • Complete a wide range of applications with a high-performance motor that delivers up to 300 UWO, and an impact driver delivering up to 1,400 in-lbs of torque
  • Both the DEWALT impact driver and drill driver feature integrated LED work lights with a convenient 20-second delay, ensuring enhanced visibility in dimly lit or challenging work areas
  • One-Handed Loading - Keep one hand free with a 1/4 in. hex chuck that accepts 1 in. bit tips

What the receipts are intended to fund

Each authority would have to publish an Infrastructure Delivery Strategy explaining how levy receipts would support growth-related infrastructure. The policy objective includes:

  • affordable housing;
  • schools and education facilities;
  • health facilities;
  • transport infrastructure;
  • green space and related community infrastructure.

The design also includes a “right to require”. This would allow an authority to specify what share of levy value must be delivered as on-site affordable housing and what share could be paid as cash. That mechanism is intended to preserve a reliable affordable-housing outcome while giving councils flexibility over whether provision is made within the scheme or funded elsewhere.

The strategy should give communities a clearer view of the infrastructure expected to be supported by development. It does not, however, guarantee that every project will receive a particular facility or that levy receipts will be spent immediately on the site where they arose; the authority’s published strategy and the final rules will determine allocation.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

Will it replace Section 106?

No—not completely. The proposal limits Section 106 to specific circumstances rather than abolishing it.

The consultation identifies an in-kind route for the largest and most complex sites. On those schemes, delivering infrastructure or affordable homes directly may be more practical than converting every requirement into a cash levy. Section 106 would also remain the route for developments where gross development value per square metre cannot be calculated, or where buildings are not the main focus, such as some minerals and waste developments.

This means a major housing scheme could encounter both systems during the transition to the new framework, or a final arrangement in which the levy covers the standard contribution while Section 106 secures site-specific matters. The precise boundary will depend on the implementing regulations and the authority’s schedule.

Section 106 compared with the proposed levy

Issue Infrastructure Levy (proposed) Section 106
Who sets the charge The local authority through a charging schedule, within national rules Requirements negotiated between the authority and the applicant and recorded in a planning obligation
How liability is determined A scheduled percentage applied to completed-development value above a local threshold Site-specific obligations agreed to make a particular development acceptable
When value is assessed At completion, based on the final development value under the regulations Usually established through the obligation and the development’s agreed requirements
Affordable housing The authority can use its “right to require” to specify an on-site share and a cash share Can secure affordable homes or a financial contribution through the negotiated obligation
Developments routed to the mechanism Standard qualifying development where the levy has been implemented Largest and most complex sites, and schemes where value per square metre cannot be calculated or buildings are not the main focus

The key practical difference is that the levy is scheduled and value-based, while Section 106 is tailored to the impacts and requirements of a particular site.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.
Rank #3
Sale
Push to Unlock,Katerk 6pcs 1/4 inch Hex Shank Aluminum Alloy Screwdriver Bit Holder Light-Weight Quick-Change Extension Bar Keychain Drill Screw Adapter Portable,Black Carabiner,Tool Gifts for Men
  • 【Great Compatibility】This Katerk 1/4 inch hex shank bit holder is specifically designed for 1/4 inch hex shank drill bits. It's compatible with most 1/4 fast hex handles, hex sockets, various electric screwdrivers, and handheld screwdrivers. The bit holder makes it a valuable addition for any handyman.
  • 【Secure and Safe】Built with a secure backup nut design, each drill bit holder securely locks onto your bits, ensuring they stay firmly in place. Additionally, our bit holder incorporates a high-quality steel ball rolling design that holds up to several kilograms of weight, ensuring your various drill bits don't fall off.
  • 【Easy One-Handed Operation】The bit holder for impact driver allows you to change bits single-handedly, simplifying your workflow. Its multi-color design further allows for quick identification of the drill bit you need.
  • 【Compact and Convenient】Thanks to its compact size, this 1/4 inch bit holder is easy to carry around. The bit holder allows for easy attachment to various tools, making this a convenient addition to your construction accessories. The Katerk bit holder is cast from high-quality alloy material, promising a long product lifespan. Despite its rugged strength, the bit holder remains lightweight, making it portable.
  • 【Cool Christmas Gift For Men Stocking Stuffers】 This screwdriver bit holder, driver bit holder, impact bit holder, can be given as a gift to your loved one, especially for anyone involved in construction or electrical work. It's a must-have for stocking stuffers for men and women, tools gifts for dad, tech gadgets for men, gifts for dad, gifts for him, gifts for husband, gifts for boyfriend, cool gadgets for men, and cool gifts for dad.

How it differs from the current Community Infrastructure Levy

The current Community Infrastructure Levy (CIL) is a charge a local authority may impose if it has an adopted charging schedule. Under current CIL rules, most new development that creates at least 100 square metres of net additional floorspace, or a new dwelling, can potentially be liable, subject to reliefs and exemptions.

The proposed Infrastructure Levy changes the design in three important ways:

  • Adoption: CIL is optional for a council; the proposed levy is intended to be mandatory where implemented.
  • Basis of charge: CIL generally follows its statutory charging formula and floorspace rules, whereas the proposed levy is linked to the final value of completed development above a local threshold.
  • Local schedule: both systems use local schedules, but the new schedule would set a value threshold and a percentage rate designed around completed-development value.

Reliefs, exemptions and transitional provisions will matter in both systems. A project cannot determine its liability from the headline policy alone; it must check the applicable council schedule, development category, valuation and commencement or completion rules.

What the levy could mean for developers

More predictable policy, but not a fixed bill

A published threshold and percentage can make the contribution framework easier to model than a series of individually negotiated requests. However, a value-based liability is not the same as a fixed amount. Final sales values, use changes, phasing and the valuation rules can all affect the result.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

Greater exposure to market movements

Because liability is connected to the completed value, developers should stress-test both rising and falling market scenarios. The appraisal should show how the levy changes if values move, rather than treating the initial planning estimate as the final bill.

Affordable housing must be modelled alongside the levy

The authority’s “right to require” may reserve a defined share of levy value for on-site affordable housing. Developers need to test the combined effect of land cost, build cost, finance, affordable-housing tenure and the cash portion of any requirement. A scheme that appears viable before the authority applies its required affordable-housing share may need redesign.

Site-specific obligations still matter

Complex sites may remain subject to Section 106 arrangements and direct infrastructure delivery. Early discussions should identify whether the project is likely to use the standard levy route, an in-kind route, or the Section 106-only route for a non-GDV case.

Rank #4
Sale
2 Pack Carpenter Pencils Mechanical Pencils with 12 Refills, (2 Colors) | Construction Pencils with Built-in Sharpener, Long Nib Deep Hole Pencil Marker, Heavy Duty Woodworking Pencil for Architect
  • Long Nib and Deep Hole Marker: Our mechanical carpenter pencil with 45mm nib is designed for easy marking of deep holes or narrow areas. These construction pencils are the great choice for woodworking tools, construction tools, carpenter tools, contractor tools, wood carpentry tools and architect tools
  • Extra Refills in 2 Colors for Versatile Marking: The construction mechanical pencil comes with 12 extra 2.8mm refills, including 6 red and 6 black refills. The black refill is suitable for light surfaces, while the red wax is perfect for dark surfaces. Our carpenter mechanical pencil makes sure that you'll have an ample supply for extended use
  • Built-in Sharpener: Our construction pencil comes with a built-in sharpener to ensure the mechanical pencil tip is always sharp and ready for use. Never buy an extra pencil sharpener again. A great tool for any woodworker pencil, contractor pencils. The refill can easily be extended or retracted with a simple click of the pencils mechanical, allowing you to work more efficiently and accurately
  • Portable Clip Design: Our deep hole construction pencil features a portable clip design, easy to carry and attach to your pocket or tool box, so that you can keep the carpenter pencils mechanical close at hand, making it a convenient tool to have on the go. Great gifts choice for carpenters
  • Stronger Pencil Lead: The black refills are made of lead, sturdy and smooth. The red refills are made of wax, clear and light. These marking pencils are much thicker and stronger than normal pencils during the marking process of construction work, suitable for various surfaces, such as glasses, metal, boards, floors, walls, furniture, etc. The written marks can be easily wiped with a wet paper towel when needed
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Support on Ko-Fi

A practical due-diligence checklist

Before acquiring land, submitting an application or fixing a development budget, work through these checks:

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.
  1. Confirm the policy status: establish whether the authority has implemented the Infrastructure Levy or still operates CIL and Section 106 only.
  2. Find the charging schedule: identify the zone, development use, threshold, percentage rate and any stated exemptions or reliefs.
  3. Classify the scheme: check whether it is a standard building-led development, a large or complex site likely to require in-kind delivery, or a minerals, waste or other scheme where value per square metre cannot be calculated.
  4. Define the valuation basis: confirm which completed floorspace and uses enter the gross development value calculation and what evidence the authority requires.
  5. Model sensitivity: run the appraisal at several completed values and delivery dates, including a downside case.
  6. Read the Infrastructure Delivery Strategy: understand the authority’s priorities for schools, transport, health, green space and affordable housing.
  7. Check the affordable-housing “right to require”: identify the required on-site share and any cash share before settling the layout or tenure mix.
  8. Coordinate contracts: allocate liability, valuation information, notices and payment responsibilities between landowner, developer, funder and contractor.
  9. Record transition assumptions: if permission may be granted before implementation, obtain written planning and legal advice on which system applies.

Transition: what happens to permitted sites?

The consultation proposes a phased “test and learn” introduction before wider rollout across England. This means the initial implementation would be used to learn from operation in selected areas or stages before expansion.

Sites permitted before the new levy is introduced would continue under their existing CIL and Section 106 requirements. They would not be moved into the new system simply because construction or sales continue after implementation. The permission date, commencement rules and any transitional regulations should therefore be checked carefully for every live project.

There is no single live national rate card to apply today. The consultation describes policy design, not a universal charge. Actual liability depends on the relevant authority’s regulations, charging schedule, development type, valuation, exemptions and transition provisions.

Common misunderstandings to avoid

  • “It is a national tax.” It is proposed as a locally set planning charge in England.
  • “Every development pays the same percentage.” Councils may vary rates and thresholds by use, typology and zone.
  • “The levy automatically replaces Section 106.” Section 106 remains for specified complex, in-kind and non-GDV cases.
  • “The amount is fixed when permission is granted.” The proposed basis is the value of the completed development, subject to the final valuation rules.
  • “A project with planning permission must be moved into the new system.” The transition proposal keeps pre-introduction permissions under their existing CIL and Section 106 arrangements.
  • “The consultation example is the national rate.” The £1,500 and £2,500 per-square-metre figures are illustrative only.

What is established—and what remains uncertain

The policy direction is clear: a locally scheduled, mandatory charge on completed value above a threshold, with infrastructure and affordable housing as the intended uses and limited continuing roles for Section 106. The operational details are not yet universal. A project team still needs the implementing regulations and the relevant council’s schedule to know the exact rate, valuation method, payment trigger, reliefs, exemptions and interaction with other obligations.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

For construction planning, the safest approach is to treat the levy as a variable development cost. Keep a documented assumption in the appraisal, update it when the authority publishes its schedule, and obtain specialist planning and valuation advice before exchanging contracts or committing to a fixed-cost build programme.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

Leave a Reply

Your email address will not be published. Required fields are marked *

What’s actually slowing this PC down?

Pick the symptom - the matching free tool is one click away.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

Recommended PC Tool
Recommended PC Tool
Crashes, No Sound, or Screen Glitches?Free driver scan
PC Slower Than It Used to Be?Free scan - under a minute

Two free Windows tools

One Free Minute Could Fix That PC

Before you go - each of these free tools takes about a minute and tackles what quietly slows a Windows PC down.

Special offer. View Outbyte info, uninstall instructions, EULA, and Privacy Policy.