Proposals in the Localism Bill which would allow money raised via the Community Infrastructure Levy to be allocated to a wide range of projects and not just essential new infrastructure could jeopardise the development of new waste facilities.
That is the warning made by the Institution of Civil Engineers (ICE), in a briefing document sent to MPs and peers ahead of the Bills second reading in the House of Lords today (June 7).
Under the Community Infrastructure Levy (CIL), local authorities can require companies developing new infrastructure to pay them a fixed sum which the council can then allocate to its wider infrastructure priorities.
However, plans being brought forward under the Localism Bill mean that councils would be able to use the money to fund the maintenance and upkeep of existing infrastructure, as well as passing it on to third parties such as community groups. The potential for it to be able to be spent on affordable housing has also been mooted.
These proposals have been criticised by the ICE, which claims that the 1 billion 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 ICEs 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 1 billion 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.
Meaningful proportion
According to the ICE, ministers have said the proposals in the Bill would allow a meaningful proportion of the CIL to go back to the neighbourhoods directly affected by the development it was raised from.
But, the Institution claims this could lead to very local priorities overriding the needs for vital infrastructure that would benefit a wider section of society, and also undermine the primary function of the fund, which is to support new infrastructure projects.
The proposed reform of the CIL has already drawn criticism from within the waste industry, with SITA UK questioning how effective it will be at sharing the benefits of new projects with the local communities affected.
Instead, the waste company has said more direct and in-direct community buy-in, such as selling electricity at a reduced price to people living near new energy-from-waste facilities, would help to gain public support for projects (see letsrecycle.com story).
Referendums
ICE also said today that it had continuing concerns over proposals contained in the Bill for new local referendum powers to be introduced. According to the Institution, these could allow organised community groups to oppose certain types of developments before planning proposals have even been made.
The Localism Bill was originally published in December 2010 (see letsrecycle.com story), and has already passed through the House of Commons. After todays 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.
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