Agenda item

Presentation by the Head of Planning Policy on the Harrow Community Infrastructure Levy (HCIL)

The Head of Planning Policy provided an update on the Harrow Community Infrastructure Levy (HCIL), covering receipts, allocation, and expenditure.  The report presented a breakdown of the HCIL, which consisted of two main elements:

Borough CIL

This was the larger strategic fund used to finance infrastructure projects, allocated through the capital program and informed by the local plan and infrastructure delivery plan.

Neighbourhood CIL

These represented 15% of the total CIL, with 10% allocated at the ward level, primarily based on requests from ward members.  Additionally, a 5% central pot was allocated through a bi-annual competitive bidding process for projects benefiting multiple wards or wards with limited CIL receipts.

The Head of Planning Policy reported that since 2013/2014, Harrow had received nearly £27 million in CIL receipts, with annual receipts averaging between £2 to £3 million.  Around £16 million had been spent, and £7 million was allocated through the current capital program, bringing the total to approximately £23 million in expenditure or allocation.

Regarding the Neighbourhood CIL, £355,000 was allocated for the last financial year.  Table 5 of the report provided a breakdown of historic receipts and balances needing to be allocated by the end of this financial year.  A correction was made in the report, noting that Table 4 should refer to Neighbourhood CIL balances as of the beginning of the financial year.

Ward-level projects, 32 projects were approved, with a total value of nearly £645,000.  £190,000 of these had been spent during the financial year, which included projects carried over from previous years.

The Central CIL pot, designed for projects benefiting multiple wards or wards with minimal receipts, had its first competitive bidding round last year.  Details of approved projects were listed in the report and appendix.

An internal audit was conducted to review the Neighbourhood CIL process, focusing on policy, allocation procedures, and project delivery.  The audit concluded a reasonable level of assurance, with several recommendations for improvement, including better community engagement, internal communication, and geographic allocation of funds.

The following questions were asked and answered.

The Panel expressed appreciation for the officers' hard work, praised the officers and economic development team for their efforts.

The Panel noted the challenge of spending remaining funds before the deadline and emphasised the importance of not rushing projects just to meet deadlines.  The Chair agreed and raised a point about the need for a more equitable distribution of funds across wards, particularly between those with high development and those with little.

The Chair proposed a recommendation for officers to review and create a more equitable funding system.  Cllr Baxter supported the idea of a more equitable distribution, citing the significant disparity in funding between wards and the need for a review by officers.

The recommendation was seconded and put to a vote.

The Panel wished it to be recorded that proposed recommendation was agreed by majority of votes.

Councillors Marilyn Ashton, Stephen Christopher Baxter and Zak Wagman voted to approve the recommendation.

Councillors David Perry, Graham Henson and Nitin Parekh voted against the recommendation.

RESOLVED:  That

(1)            the report be noted;

(2)            officers be recommended to review a more equitable funding system.