Chorley is first to face community levy challenge

CHORLEY Borough Council has become the first local authority in the country to face a legal challenge over its community infrastructure levy (CIL) charging schedule.

CILs – introduced to replace section 106 agreements – allow authorities to levy a fee on developments that can be used to improve roads and local amenities.

Fox Strategic Land, a division of Congleton-based Gladman Developments, has taken Chorley to court on three grounds. It argued the council’s approach to land values was irrational; that it used an unrealistically large unit to calculate CIL rates; and had failed to consider whether the schedule should hold after January 2016, because proposed energy efficiency changes would “significantly increase production costs”.

Evidence was heard last week by Judge Lindblom at the Manchester Civil Justice Centre who reserved judgement for a future date.

Councillor Paul Walmsley, chair of Chorley Council’s development control committee, said: “We were disappointed to receive this challenge because we felt we’d been robust and transparent in our approach to the adoption of our CIL schedule, including a testing public inquiry. We also feel that the issues raised in the challenge were properly considered by the independent inspector at that inquiry.

“Whilst we’re confident in our position on this, this challenge has led to a little uncertainty for the council and for developers who may wish to submit applications. Fox Land hasn’t sought an injunction to suspend the CIL schedule so we’re proceeding on the basis that CIL is payable by developers. However, if the challenge is successful, we won’t be able to rely on our CIL schedule and so we’ve taken steps to mitigate the possible impact in relation to applications we’ve already received.”

Gladman Developments did not respond to a request for comment.

Emily Williams, planning specialist at the Manchester office of Irwin Mitchell, is advising Fox Strategic Land & Property.