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You are here: CIWM  >  Publications  >  Latest News  >  Localism Bill Could Jeopardise Waste Infrastructure, Warns ICE

Localism Bill Could Jeopardise Waste Infrastructure, Warns ICE

7 June 2011

In a briefing document sent to MPs and peers ahead of the Bill's second reading in the House of Lords, the Institution of Civil Engineers (ICE) has warned that revisions to the Community Infrastructure Levy (CIL) in the Localism Bill could jeopardise the delivery of important sub-national infrastructure such as waste systems

The engineering body, ICE, has published an updated briefing that raises concerns about changes to the levy, which was originally intended to secure developer contributions towards the provision and improvement of local infrastructure.

ICE is primarily concerned by the revisions that mean in future the levy could be used for other purposes, including revenue funding for infrastructure - including maintenance and upkeep, and allowing for the income to be passed to third parties such as community groups.

Government is also considering the possibility of allowing CIL to be spent on affordable housing.

"Essential Infrastructure"

These proposals have been criticised by the ICE, which claims that the £1bn a year the government believes the CIL could raise was originally meant to be spent solely on new "essential infrastructure", such as waste.

The chair of the ICE's localism panel, Geoff French, said: "Due to a history of under-investment, many of our local networks are in urgent need of upgrading or replacement.

"It has been estimated that the CIL could raise around £1bn per year in future, and we strongly believe this important funding stream must be protected solely for the provision of essential infrastructure that underpins economic growth, both locally and nationally."

French added, "ICE is very pleased that government recognised our initial concerns about the 'Duty to Cooperate' and we hope that it will now also take the important issue of the CIL into consideration as the Bill progresses through Parliament."

Rt Hon Greg Clarke MP, Minister of State, Department for Communities and Local Government has previously said that this would allow a "meaningful proportion" of the CIL to go directly to the neighbourhood in which it was raised, but ICE says this could lead to very local priorities overriding the need for essential infrastructure, such as transport networks, that would benefit a wider section of society.

It warns that with local authorities facing reduced budgets, the CIL will become an increasingly important mechanism for funding new infrastructure and says that opening it up for other, albeit important, purposes would undermine its primary function.

ICE also remains concerned about the introduction of local referendums, which could pose questions for infrastructure development if organised community groups are able to oppose certain types developments even before planning proposals have been made.

The Localism Bill was originally published in December 2010 and has already passed through the House of Commons. After today's second reading in the Lords, it must pass through a committee stage, report stage and third reading in the upper house before final consideration of amendments precedes Royal Assent.

Darrel Moore