Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Communities and Local Government, what steps his Department has taken to encourage the development of small sites by small builders; and whether his Department has made an assessment of the potential effect of deferring payment of the community infrastructure levy for sites of less than 50 units until those properties are placed on the market on the development of such sites.

Increasing the number of homes is a top priority for this Government and helping smaller builders to contribute is key. Self builders are exempt from the Community Infrastructure Levy and charging authorities may offer relief from the levy in exceptional circumstances where a specific scheme cannot afford to pay it.

We brought forward policy to exempt sites of less than 10 units from making affordable housing and tariff style contributions through section 106 planning obligations, which was subsequently quashed by the courts. We have appealed this decision and we are awaiting the judgment from the Court of Appeal.

The Government is currently undertaking a review of the Community Infrastructure Levy, through an independent panel, to assess the extent to which the levy provides an effective mechanism for funding infrastructure, and to recommend changes that would improve its operation in support of the Government’s wider housing and growth objectives. The review, amongst other issues, will be looking at the relationship between the levy and section 106, including how they work together in practice.