Infrastructure Funding Statement 2021/22

Last updated – December 2022

Portsmouth City Council reserves the right to amend the information in this document at any time. Information correct at time of publishing.

• Introduction
• Community Infrastructure Levy Report
• Section 106 (Planning Obligations) Report
• Appendix A – Replaced Regulation 123 List

1.1. This report provides information on the monetary (and non-monetary) contributions sought and received from developers for the provision of infrastructure to support development in Portsmouth, and the subsequent use of those contributions by Portsmouth City Council. The report covers the financial year 1 April 2021 – 31 March 2022.

1.2. Portsmouth seeks developer contributions through the Community Infrastructure Levy (CIL) and Section 106 agreements (also known as “planning obligations”).

CIL

1.3. CIL was introduced in 2010 and has been charged in Portsmouth since April 2012. CIL is a set charge, based on the gross internal area floorspace of buildings, on most new development to help fund the infrastructure needed to address the cumulative impact of development across our area. Our CIL charging schedule, setting out our CIL charging rates, is available on our website.

1.4. Local planning authorities must use CIL to fund ‘the provision, improvement, replacement, operation or maintenance of infrastructure to support the development of the area’. There is also a neighbourhood portion of CIL – ‘Local CIL’ – which is similarly able to fund infrastructure but can also fund ‘anything else that is concerned with addressing the demands that development places on an area’ following engagement with local communities.

Planning Obligations

1.5. Section 106 of the Town and Country Planning Act 1990 enables a local planning authority to enter into a negotiated agreement – a planning obligation – to mitigate the impact of a specific development, to make it acceptable in planning terms. The planning obligation might, for example, require the provision or contribution to a new or improved road or local green infrastructure. Local planning authorities can also seek planning obligations to secure a proportion of affordable housing from residential developments.

Headline figures

• CIL invoiced (set out in Demand Notices) in 2021/22 – £3,871,702.60
• CIL receipts received in 2021/22 – £3,175,296.70
• CIL receipts that CIL regulations 59E and 59F applied to (neighbourhood CIL) – £476,293.98
• CIL expenditure in 2021/22 – £3,177,775.04

2.2. CIL infrastructure expenditure in 2021/22

2.3. Summary details of the items of infrastructure on which CIL (including land payments) has been spent in 2021/22, and the amount of CIL spent on each item:

• (i) Redevelopment of City Centre – £2,228,553
• (ii) Business Case for Extension to Tipner Park and Ride – £296,069
• (iii) City Centre Road – £47,304

2.4. Other CIL expenditure in 2021/22

2.4.1. Total amount of CIL spent in 2021/22 on repaying money borrowed, including any interest, and details of the items of infrastructure which that money was used to provide (wholly or in part): £0 (zero)

2.4.2. Total amount of CIL spend on administrative expenses in 2021/22 and that amount expressed as a percentage of the total CIL received in 2021/22:

• CIL spent on administration – £158,764.84
• Percentage of total CIL received – 5%

2.4.3. The amount of CIL passed to any parish or town council under CIL regulations 59A and 59B or passed to external organisations (other than parish/town councils) under CIL regulation 59(4): £0 (zero)

2.4.4. Summary details of the expenditure of CIL on infrastructure, to which CIL regulations 59E or 59F applied during 2021/22

2.5. CIL receipts retained (allocated and unallocated)

2.5.1. The total amount of CIL receipts, received prior to 2021/22, which have been allocated (to an infrastructure project or item) in 2021/22: £457,603.91

2.5.2. The total amount of CIL receipts, received prior to 2021/22, which had not been allocated (to an infrastructure project or item) by the end of 2021/22: £905,695.51

2.5.3. The total amount of CIL receipts, whenever collected including 2021/22, which were allocated (whether allocated prior to or during 2021/22) but not spent during 2021/22: £11,067,356

2.5.4. Summary details of the infrastructure projects or items to which CIL receipts, whenever collected including 2021/22, have been allocated (but not spent) and the amount allocated to each item:

As part of the rolling 5 year Capital Programme approved by Cabinet and Full Council, CIL receipts are allocated to appropriate infrastructure schemes. The following table shows allocation for 2022/26 and includes projected CIL income for 2022/23.

The full details can be found on the Full Council Meeting 15 February 2022 webpage here.

2.5.5. Summary details of the allocation of CIL on infrastructure, to which CIL regulations 59E or 59F applied but has not yet been expended:

2.5.6. Summary details of any Notices served in accordance with regulation 59E (to recover CIL previously passed to a parish or town council) and whether sums had been recovered by end of 2021/22: £0 (zero)

2.5.7. CIL receipts received in 2021/22 retained at the end of 2021/22 (other than those to which CIL regulation 59E and 59F applied): £2,540,237.36

2.5.8. CIL receipts received before 2021/22 retained at the end of 2021/22 (other than those to which CIL regulation 59E and 59F applied): £7,971,671.64

2.5.9. CIL receipts received in 2021/22 to which CIL regulation 59E or 59F applied, retained at the end of 2021/22: £476,293.98

2.5.10. CIL receipts received prior to 2021/22 to which CIL regulation 59E or 59F applied, retained at the end of 2021/22: £1,364,794.51

2.6. The (CIL) Infrastructure List

2.7. Regulation 121A(1)(a) requires the infrastructure funding statement to include:

“a statement of the infrastructure projects or types of infrastructure which the charging authority intends will be, or may be, wholly or partly funded by CIL (other than CIL to which regulation 59E or 59F applies) (“the infrastructure list”)”

This Infrastructure List replaces the previous Regulation 123 list (see appendix A).

Infrastructure which may be wholly or partly funded by CIL:

• Transport (including road networks, transport interchanges and park & ride)
• Flood Defences (including Portsea Island Coastal Defence Strategy)
• Schools (including academies and free schools)
• Hospitals (including healthcare and social care facilities)
• Green Infrastructure (including play areas, open spaces and parks)
• Recreational Facilities (including cultural and sports facilities)
• Community Safety Facilities (including police stations).

2.8 Narrative

The Portsmouth City Council five year rolling Capital Programme which is approved at Cabinet and Full Council includes details of infrastructure to be funded by CIL. The flexibility afforded by the infrastructure list will allow CIL income to be directed/redirected to the most needed supporting infrastructure in the event of changing priorities. Updates on spending and allocations will be provided in the annual infrastructure funding statement.

The cost of infrastructure needed to support the development of Portsmouth continues to outstrip income received from developer contributions and a significant funding gap exists. After publication of the new Portsmouth Plan, it is anticipated that a CIL charging schedule review will be undertaken to ensure an appropriate charging rate is set.

3.1. Headline Figures

Monetary Contributions:

• Total money to be provided through planning obligations agreed in 2021/22 – £209,220
• Total money received through planning obligations (whenever agreed) in 2021/22 – £132,753.40
• Total money, received through planning obligations (whenever agreed), spent in 2021/22 – £545,717
• Total money, received through planning obligations (whenever agreed), retained at the end of 2021/22 (excluding “commuted sums” for longer term maintenance) – £1,122,419
• Total money, received through planning obligations (whenever agreed), retained at the end of 2021/22 as “commuted sums” for longer term maintenance – £580,061

Non-Monetary Contributions

• Total number of affordable housing units to be provided through planning obligations agreed in 2021/22 – None
• Total number of school places for pupils to be provided / were provided through planning obligations – None

3.2. Summary details of the items of infrastructure on which money received through planning obligations (whenever received) has been spent in 2021/22, and the amount of money, received through planning obligations, spent on each item:

• SEND School Places – £22,400
• CCTV Upgrades – £24,627
• Farlington Pavilion Refurbishment – £8,100
• Roof Repairs at Southsea Skatepark – £3,760
• Social Housing – £486,830

3.3. Total amount of money, received through planning obligations (whenever agreed and money received), spent in 2021/22 on repaying money borrowed, including any interest, and details of the items of infrastructure which that money was used to provide: £0 (zero)

3.4. Total amount of money, received through planning obligations (whenever agreed and money received), spent in 2021/22 in respect of monitoring (including the preparation of the section 106 report for this Infrastructure Funding Statement) in relation to the delivery of planning obligations: £2,571.91

3.5. Section 106 receipts retained (allocated and unallocated)

3.5.1. The total amount of money, received through planning obligations prior to 2021/22, which had not been allocated (to an infrastructure project or item) by the end of 2021/22: £0

3.5.2. The total amount of money, received under any planning obligation in any year, which had been allocated (to an infrastructure project or type) for spending by the end of 2021/22 but which had not been spent: £0

3.5.3. Summary details of the infrastructure items to which receipts from planning obligations, whenever collected including 2021/22, have been allocated (but not spent) and the amount allocated to each item:

Regulation 123 list is valid from 1 April 2012.

Regulation 123 of the Community Infrastructure Levy Regulations 2010 restricts the use of planning obligations for infrastructure that will be funded in whole or in part by the Community Infrastructure Levy, to ensure no duplication between the two types of developer contributions*. A CIL charging authority is expected to publish a list of infrastructure that will benefit from CIL on its website.

The list below sets out those infrastructure projects that Portsmouth City Council intends will be, or may be, wholly or partly funded by CIL.  In accordance with Regulation 123, developer contributions to the projects listed will not be sought through planning obligations.

The city council will review this list at least once a year, as part of its monitoring of CIL collection and spend.

NB inclusion of infrastructure types in this list does not signify a commitment from the city council to fund all the projects listed, or the entirety of any one project through CIL. The order in the list does not imply any order of preference for spend.

• Infrastructure projects to be funded at least in part by the CIL
• Flood Risk Management Infrastructure to protect Flood Cell 1 of the Portsea Island Coastal Defence Strategy
• Flood Risk Management Infrastructure to protect Flood Cell 4 of the Portsea Island Coastal Defence Strategy
• School Places (primary and secondary schools)
• Improvements to Southsea Common and the Seafront
• Improved City Centre road network
• Horsea Island Country Park
• Bridge Link Tipner to Horsea Island
• M275 Junction at Tipner
• Park & Ride at Tipner
• The Hard Transport Interchange
• Station Square Transport Interchange
• City Centre Public Realm Improvements

* Regulation 123(2) of the Community Infrastructure Levy Regulation 2010 states that ‘A planning obligation may not constitute a reason for granting planning permission for the development to the extent that the obligation provides for the funding or provision of relevant infrastructure.’