Developers’ levy receipts to support major capital projects and neighbourhood improvement schemes
At the Cabinet meeting today (20 March 2025) councillors decided that income collected from developers undertaking construction projects in the city through the Community Infrastructure Levy should be used to boost city-wide and ward development budgets.
They backed proposals to use £2.4m of Community Infrastructure Levy (CIL) Citywide receipts to support existing priority capital project expenditure in 2024/25; up to £184k of CIL Citywide receipts to support the Thriving Communities Fund; and to use £235k to boost Neighbourhood CIL funding.
Councillor Jacob Taylor, deputy leader and cabinet member for Finance and City Regeneration, said: “CIL is an important tool we can use to help deliver the infrastructure needed to support development identified in the City Plan.
“Using £2.4m of the CIL receipts to reduce borrowing on major projects will reduce ongoing funding pressures that we continue to face, as well as driving regeneration. Projects like Hove Beach Park are benefitting the whole of the city.
“In future years remaining CIL funds could be invested into seafront maintenance projects to reduce future borrowing requirements resulting from the restoration of Madeira Terrace and the rejuvenation of Black Rock, for example.
“In order to ensure that all neighbourhoods see some local benefit from developments that have taken place across the city, we are also proposing that up to £184k of CIL Citywide receipts goes to support eligible projects in the Thriving Communities Fund programme and £235k is used to ensure that every ward has at least £22,000 of Neighbourhood CIL funding available.
“Ward councillors will decide which projects will be supported in their area from that funding in autumn this year. That will follow engagement and consultations with each community in late spring.
“This investment in infrastructure and the environment will make a significant contribution to meeting our council plan objectives to make the city a place which we are all proud to live, work and learn in.”
What CIL is and how will the money be spent
CIL is a charge which can be levied though the planning system on new development following the grant of planning permission.
Since the levy started, we have collected £3.03m for the Citywide pot and £0.5m for the Neighbourhood pot.
It is estimated that the current capital programme will require borrowing of circa £37.5m to deliver new, strategically important infrastructure for the city. We currently hold £3.03m of Citywide CIL which can be spent on infrastructure across the city. Using £2.4m of the Citywide CIL for the 24/25 capital programme will reduce borrowing costs by £180,000 per year over 15 years.
In future other schemes likely to be considered for funding could include tree planting and other environmental improvements, investment in strategic road improvements and seafront heritage projects.
Thriving Communities Fund 25/26
The Thriving Communities programme is a key part of how we support local communities and the most disadvantaged groups across the city. It has been identified that some of these projects could be eligible for funding under the CIL Regulations 2010. £184k of Citywide CIL will be used to support suitable bids in 25/26.
Neighbourhood CIL – ward top up
10% of CIL is allocated to the ward where the development has taken place. There is no flexibility in the regulations to redistribute ward funds, meaning there are significant differences in the level of receipts available in each ward. Currently 17 of the 23 wards in the city have either no Neighbourhood CIL, or significantly less than those where larger developments have taken place since the Levy was introduced.
£235,000 of the Citywide CIL will be used to top up the current Neighbourhood CIL funds in those 17 wards so each one has £22,0000 available to be spent on local projects. This will ensure that all neighbourhoods will see some benefit from development taking place in the city.