To ask the Secretary of State for Levelling Up, Housing and Communities, how the provisions of Section 106 differ from the infrastructure levy proposed in the Levelling Up and Regeneration Bill; and if he will make a statement.
13 July 2022
The Infrastructure Levy will be a mandatory charge, set and collected locally, to largely replace the complex and discretionary section 106 regime and CIL charge. The new Levy is designed to collect more value than the existing system and will reduce the levels of protracted and costly negotiation present in the existing system.
We will be retaining section 106 for limited purposes, such as for large and complex sites. In these instances, infrastructure will be able to be provided in-kind and negotiated, but with the guarantee that the value of what is agreed will be no less than will be paid through the new Levy. This will make sure that development pays its way, and that developers cannot negotiate below what a charge to the Infrastructure Levy would have secured.
A technical consultation on the Infrastructure Levy will be published in due course.