Community Infrastructure Levy (CIL) and planning obligations (s106)
The Community Infrastructure Levy (CIL) and Planning Obligations ensure that development contributes to improving the City's infrastructure, environment and facilities.
Community infrastructure levy
The Community Infrastructure Levy (CIL) is a charge on new development that is used to help fund the provision of infrastructure in the City of London. The CIL operates through a charging schedule. The City Corporation will prepare an Annual Infrastructure Funding Statement by the end of December each year setting out its CIL funding priorities and reporting on CIL income and expenditure
More information on the CIL, including copies of forms and notices, is available through the Planning Portal.
Annual CIL rate summary
The Community Infrastructure Levy (CIL) is subject to indexation which allows the rates to be adjusted to reflect inflation. The effective CIL rates (indexed) that will apply from 1 January 2020 to 31 December 2020 are set out in our Annual CIL Rate Summary.
CIL instalment policy
The City Corporation has adopted a revised CIL Instalment Policy to provide greater payment flexibility in response to the Covid-19 pandemic. The revised Instalment Policy will be effective from 11 March 2021.
- CIL payments of <£500,000: payment is due in full within 60 days after 31 July 2021.
- CIL payments of £500,000 or more: 50% of the payment is due within 60 days after 31 July 2021. The outstanding balance is due within 240 days after 31 July 2021.
This Instalment Policy will be revised before 31 July 2021.
CIL Neighbourhood Fund
CIL Regulations require that 15% of CIL receipts be used to assist the delivery of infrastructure to support neighbourhood priorities.
The City Corporation has established a CIL Neighbourhood Fund. Information on how to apply to the fund is at Community Infrastructure Levy Neighbourhood Fund.
S106 and CIL monitoring
The City Corporation is required by CIL Regulation 121A to report annually on the amount of CIL and s106 received and the amount of CIL expenditure through the Annual Infrastructure Funding Statement.
Planning obligations (often called S106 agreements) are agreements with developers for the provision of, for example, affordable housing, local training and jobs, and site-specific mitigation measures. The City's Supplementary Planning Document (SPD) explains how obligations operate.
The City Corporation has a template for S106 agreements, containing standard clauses which applicants are expected to agree, where relevant. More information is in the SPD paragraph 75.
S106 agreements are subject to administration and monitoring charges .
The SPD encourages 10% of goods and services relating to developments to be locally procured from the City and its neighbouring boroughs. The Local Procurement charter for City developers and the Local Procurement guidance note for developers provide more information.
For more information on discharging Planning Obligations email Planning Obligations or call our Contact Centre on 020 7332 1710.
Mayoral CIL and planning obligations
The Mayor of London also operates a CIL and planning obligations to raise funds towards meeting the cost of Crossrail. These measures apply across Greater London, including the City. Go to the GLA website for more information.
CIL documents are available in the Planning Policy Library.