Part 13: General Schedule 12: Infrastructure Levy Part 10A, Section 204G: Amount Effect
Subsection (1) stipulates that charging authorities must, in accordance with IL regulations, issue a charging schedule, which they may then revise or replace (subsection (12)). IL regulations will apply to any revised or replacement charging schedule as they do to the preparation of the original charging schedule (subsection (13)).
	Subsection (2) provides that charging authorities must consider affordable housing delivery and funding when setting rates. Subsection (2) sets out that charging authorities must, to the extent and in the manner specified by regulations, seek to ensure that developer-funded affordable housing delivery (and the level of funding provided by developers in this regard) can be maintained at a level that exceeds or equals affordable housing delivery and funding as compared with a previous specified period. Subsection (3) provides that this duty does not apply if the local authority concludes that complying with it would make development of their area economically unviable. Subsection (5) provides powers for IL regulations to make provision about how previous levels of affordable housing delivery and funding are to be measured for this purpose.
	Subsection (6) provides that charging authorities must also consider economic factors when setting rates. IL regulations may make provision about the manner and extent to which charging authorities are to have regard to such considerations. These factors include matters specified by IL regulations relating to the economic viability of development and the economic effects of development, including anything that impacts land value. The effect of this, compared to CIL, is to shift the focus of rate setting towards the capture of land value uplift, with the two chief constraints being the extent to which land value has increased and the viability of development in the area.
	Subsection (6)(c) also requires charging authorities to have regard to the amount of IL (and anything else specified in IL regulations) provided over a specified period. Subsection (6)(d) requires a charging authority to have regard to its infrastructure delivery strategy. This is a document to be produced under new section 204Q, which will include the authority’s plans for spending IL.
	IL regulations may make other provision about how IL rates are to be set (subsection (7)).
	Subsection (8) provides examples of other factors that IL regulations may require charging authorities to have regard to in rate setting. For example, it might be the case that a particular development type may not generate IL revenues that are high enough to cover the costs of administering the IL liability, and provision could be made under subsection (8)(a) permitting or requiring charging authorities to take account of that when setting rates. Provision could be made under subsection (8)(b) would allow or require local authorities to consider how the external costs of development aside from infrastructure may impact upon the viability of IL rates.
	Subsection (9) provides powers for IL regulations to allow charging schedules to adopt specified methods of calculation, and subsection (10) provides examples of how the regulations might do this. For instance, charging schedules could operate based on descriptions of the type of development or according to the location of the development, or determine a threshold below which IL is charged at a nil or reduced rate (subsection (10)(g)). This could include items like build costs and the existing use value of the land, to consider a threshold value at which IL should not apply.
	A charging authority may be required to provide estimates of IL chargeable in respect development of land (subsection (11)). This includes estimates in connection with in-kind payments of IL, such as in the form of delivery of affordable housing.
Example (1): Setting stepped IL rates
The intention is that charging authorities will be able to set stepped rates, which increase at specified future points. This could provide charging authorities that are cautious about not making development in their area unviable with a buffer to ensure that rates are not set too high in the first instance. This buffer could be decreased over time using stepped rates. This would allow rates to be found that capture more land value uplift, particularly in areas with high land values, without making development unviable.