Part 4: Infrastructure Levy and Community Infrastructure Levy Section 137: Infrastructure levy: England Background
This section introduces Schedule 12 of this Act which makes provision for, and in connection with, the imposition, in England, of a new charge to be known as the Infrastructure Levy ("IL"). Schedule 12 contains powers for the Secretary of State to make regulations for the Infrastructure Levy ("IL regulations"). Schedule 12 inserts a new Part 10A (comprising new sections 204A to 204Z2) into the Planning Act 2008 ("the 2008 Act").
	Section 137 is related to section 139 which, when commenced, will make changes to Part 11 of the 2008 Act to restrict application of the Community Infrastructure Levy (CIL) to Greater London (for Mayoral CIL only) and Wales. Section 139 may be commenced in relation to specific areas, so that IL may be introduced in those areas and CIL may be restricted accordingly. Savings provisions can be used to ensure that development granted planning permission under the pre-existing system of developer contributions will continue to be subject to that system rather than the new IL. The introduction of IL will not impact the operation of CIL in Wales or of Mayoral CIL in London.
	IL charging authorities – who are generally local planning authorities – will be required to charge IL for development of land in their area, whereas charging CIL is at the discretion of charging authorities. The overall purpose of IL is: to ensure that the costs incurred in supporting the development of an area (including by the provision of affordable housing), and achieving any additional purpose specified in IL regulations, are funded (at least in part) by owners or developers of land, but in a way that does not make development of the area economically unviable (this is set down in new section 204A(2)).
	IL must be spent to support the development of an area by funding the provision, improvement, replacement, operation or maintenance of infrastructure (see new section 204N(1)). In addition, the IL regulations may describe the circumstances in which charging authorities may spend a specified amount of IL for any other purposes (see new section 204N(5)).
	The exact method of charging IL will be set in regulations. It is currently intended that IL will be charged based on the final gross development value of development, whereas the CIL charge is based on the floorspace of development when planning permission is granted. This will be subject to further consultation.