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Neighbourhood Plans: Community Infrastructure Levy

Asked by Jack RankinConservativeMinistry of Housing, Communities and Local GovernmentTabled Answered 20 October 2025UIN 80996

The question

To ask the Secretary of State for Housing, Communities and Local Government, whether Councils are able to use money from the Community Infrastructure Levy to refresh neighbourhood plans.

Answered by Matthew Pennycook

Community Infrastructure Levy (CIL) receipts must be used for the purposes which are set out in section 216 of the Planning Act 2008 and Part 7 of the CIL regulations.

Local authorities must spend the levy on infrastructure needed to support the development of their area Where charging authorities collect the levy, they can use up to 5% of funds from the levy to recover the costs of administering the levy.

Where all or part of a chargeable development is within the area of a parish council, the charging authority must pass a proportion of the CIL receipts from the development to the parish council. The ‘neighbourhood portion’ of CIL can be spent on infrastructure or anything else that is concerned with addressing the demands that development places on an area.

Further information on spending the levy is set out in CIL guidance which can be found on gov.uk here.

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