Transparency over the amount of money developers invest in local communities when building new homes has been welcomed by Thursfields Solicitors.
The comments come as new Community Infrastructure Levy (CIL) rules mean the public can now find out exactly how money raised is spent on improving their areas.
The CIL is already paid by developers to fund new roads, schools, GP surgeries and parkland needed when local communities expand, but until now councils were not required to report on the total funding received or how it was spent.
Pam Virdee, a Solicitor in the Commercial Property team at Thursfields’ Birmingham office, said: “We welcome local residents having a better understanding of how developers’ money is being spent to improve their communities.
Until now, people were left in the dark about what the CIL was and how it was spent, but from now on local authorities will have to be more accountable to the public, which can only be a good thing.
The new rules which came into force this month mean local residents will now be able to see how every pound of developers’ cash levied on new buildings is spent on supporting new homes and the associated infrastructure their community needs.”
Government figures show that the CIL resulted in £6 billion being paid in the 2016-17 tax year towards local infrastructure, helping to create jobs and growth.
Pam added: “The rules are designed to support councils and give greater confidence to communities about the benefits new housing can bring to their area.”
For advice on commercial property law, contact Pam Virdee on 0121 312 5174 or firstname.lastname@example.org.