Important debate in Westminster Hall makes case for Changes to Complex CIL Regulations

Matthew Pennycook MP, Minister of State (Minister for Housing and Planning), reinforced the importance of the need for Infrastructure funding - currently via Community Infrastructure Levy (CIL).  The CIL rates are determined by the separate Local Planning Authority (LPA) through England and Wales - where the relevant LPA has adopted CIL. 

Brought into effect by the Planning Act 2008 and commencing from April 2010 under the Nationally drafted CIL Regulations 2010 (as amended).  Operated locally by the relevant LPA to collect CIL in accordance with those Regulations.

In 2014 amendments to the CIL Regulations sought to remove householders from the charge, introducing 'self-build' exemptions - for new houses, extensions and annexes within the curtilage (typically for elderly, disabled or family members in need of independent space).  So that CIL remains effective to fund important infrastructure, from developer contributions and not unduly hitting householders.

The relevant attendees and speakers in the debate - which took place on 29 April 2026 - lead by former Chancellor Jeremy Hunt (MP for Godalming and Ash) within Waverley Borough Council - one of the LPAs seen as 'harshly implementing and enforcing' CIL, in contrast to others - were drawn from across the political spectrum.  Each MP highlighted the plight of various of their constituents that had been impacted by these complex Regulations at significant cost.

Cases of 'injustice' blighting families across the country were cited as far reach and including, amongst others, in Shropshire, Devon, Waverley, Sevenoaks and West Berkshire, where relatively 'minor errors' in administering the CIL procedures or changes during the project that led to retrospective permissions, had resulting in significant CIL and penalty surcharges and interest.

The Housing Minster, confirmed that the Government intended "to consult on proposal to amend the CIL Regulations to improve the process for obtaining householder development and self-build exemptions going forward". 

Adding that the proposals were "aimed at improving outcomes for householders and self-builder whilst safe guarding the integrity of the CIL system and ensuring the LPAs can properly administer, scrutinise and enforce the system".

Mr Pennycook added the consultation would be as soon as possible and "before the Summer recess"

Whilst Pennycook sounded contrite and recognised the impact on the many families caught out by the overly rigid CIL procedures, he was less forthcoming on how any reform might alleviate those already hit by these Regulations to the tune of many thousands of pounds!

Though he did stipulate that "it was not the case that those already affected by this issue we intend to do nothing". 

So hopefully within the next iteration of the process some mechanism to properly address the inconsistencies and impact of CIL on homeowners can be found that is 'fair' and effective - without unduly hitting the LPAs, many of which need the valuable funding CIL generates to provide the relevant infrastructure for these region.

The 90minute debate confirmed that the desired outcome from the proposed consultation was to prevent injustice and unexpected charges on householders, whilst helping LPAs to administer CIL in an effective way and ensure CIL is discharged appropriately.

We will be contributing to that consultation in due course, but highlight here that one option worthy of consideration is reform of Reg.55 Exceptional Circumstances Relief - that could readily be changed to widen the relevant criteria for LPAs to consider hardship and address the disproportionate impact of 'administrative errors'.  Currently Reg.55 is intended to address scope for LPAs to adjust CIL if the project/permission also has a s.106 TCPA1990 contribution and so potentially becomes unviable.

Widening the scope of 'exceptional circumstances' that could be addressed by Reg.55 would be a relatively 'quick fix' so long as there were also changes that permitted independent and retrospective oversight by Valuation Office Agency (VOA) or The Planning Inspectorate (PINS) to scrutinise the LPAs position to ensure fairness from one of these independent parties.

If you have been impacted by CIL and would like to discuss any property tax matters or specific queries relating to the above information, then please do contact the team on 0345 230 6450 or [email protected]. We look forward to speaking with you soon.