Report No: 153/2020

(Key decision)

      I.         Cabinet noted the ongoing work to review the management and administration of the Community Infrastructure Levy.

    II.         Cabinet approved that following detailed investigation and receipt of independent legal advice that no further action is taken regarding any potential Community Infrastructure Levy liability with respect to the 8 applications identified in Appendix 1 to this report.

   III.         Cabinet agreed to ‘write off’ £150,425.26 potential income associated with the 8 applications identified in Appendix 1.

  IV.         Cabinet delegated to Strategic Director – Places in consultation with the Section 151 Officer and Portfolio Holder for Resources the authority to approve a further ‘write off’, if necessary, of up to £31,000 to conclude outstanding historic CIL liability cases.

Additional recommendation:

      V.            Cabinet agreed to recommend to Council that payments be made to Parish Councils for the CIL money that they would have received but for the issues described in the Report  

Councillor G Brown introduced the report and explained that the information had gone to the Audit and Risk Committee to allow for consideration prior Statement of Accounts being signed off. He explained that the purpose of the Community Infrastructure Levy (CIL) was to raise funds from developers who were undertaking new building projects, to help pay for infrastructure. It was noted that CIL had replaced Section 106 planning obligations for many forms of infrastructure, although Section 106 agreements could still be used for site-specific mitigation measures and for affordable housing provision.

Rutland County Council adopted the Community Infrastructure in 2016 but did not at the time, set up a robust process for managing it. It was noted that the first full-time CIL Officer left the Council in 2017, and until last year the management and administration of CIL was undertaken by temporary interim agency support with periods when the post was not covered. This situation had been resolved with a full-time permanent member of staff in post. However, Councillor G Brown explained that prior to the appointment there had been 5 Directors of Places and the churn of staff during this period had been very significant. Information had not passed between individuals and a number of CIL cases had not been followed up. It became apparent this year what had happened and a team had been put in place to review this.

As part of the review the internal auditors (LGSS) were also asked to assist in the review of the CIL and S106 management process.

The review undertaken concluded that some CIL (totalling £150,425.26 with the potential of a further £31,000) to which the Council may have been entitled was no longer recoverable.

It was explained that legislation requires that a proportion of CIL funds arising from CIL liable development be passed on to Parish or Town Councils. As part of discussions Councillor G Brown proposed that officers be asked to find a way in which payments could be made to Parish Council’s, as Parish Council’s would have received a sum of money had RCC collected it.

Councillor Stephenson commented that she was reassured and noted the work of officers ensuring that gaps were narrowed to prevent this from happening again in the future.

In response to questions asked, the Interim Chief Executive explained that the Council would be doing a stock take on current services to assess whether operating procedures were in place.

RESOLVED:

That the ongoing work to review the management and administration of the Community Infrastructure Levy be noted.

That following detailed investigation and receipt of independent legal advice that no further action is taken regarding any potential Community Infrastructure Levy liability with respect to the 8 applications identified in Appendix 1 to this report be approved.

That the Council ‘write off’ £150,425.26 potential income associated with the 8 applications identified in Appendix 1 be agreed.

That authority be delegated to Strategic Director – Places in consultation with the Section 151 Officer and Portfolio  ...  view the full minutes text for item 13