Community Infrastructure Levy (CIL) - How the parish council funds must be spent
As per the CIL guidance on the planning guidance website: "What can neighbourhood funding be spent on?" it states that;
"The neighbourhood portion of the levy can be spent on a wider range of things than the rest of the levy, provided that it meets the requirement to 'support the development of the area' (as per Regulation 59c). The wider definition means that the neighbourhood portion can be spent on things other than infrastructure (as defined in the Community Infrastructure Levy regulations) provided it is concerned with addressing the demands that development places on the parish's area. For example, the pot could be used to fund affordable housing.
Parish or town councils should discuss their priorities with the charging authority during the process of setting the levy rate(s) (this includes amendments to levy rates).
Once the levy is in place, parish or town councils should work closely with their neighbouring councils and the charging authority to agree on infrastructure spending priorities. If the parish or town council shares the priorities of the charging authority, they may agree that the charging authority should retain the neighbourhood funding to spend on that infrastructure. It may be that this infrastructure (for example, a school) is not in the parish or town council's administrative area but will support the development of the area."
If a parish council has failed to spend CIL funds passed to it within 5 years of receipt or has applied the funds not in accordance with the regulations, then we can serve a notice on the parish council requiring it to repay some or all the receipts passed. We will be required to spend any recovered funds in the parish council's area.
View information on CIL advice for parish councils.