Comment

Representation ID: 1746

Received: 30/01/2015

Respondent: Cogent Land LLP (Cogent)

Payment in Kind
The CIL Regulations now allow for Payment in Kind through the provision of infrastructure. However, there remain notable deficiencies in the operation of CIL, caused primarily by the CIL Regulations, which places MDC and the development industry in a difficult position.

The scope to reduce the CIL liability via utilisation of Payment in Kind is therefore restricted to those items of infrastructure which are not required to mitigate the impact of a development, which for strategic sites would exclude most (if not all) site-specific and 'scheme mitigation' infrastructure.

Payment in Kind is therefore not a credible option, which further emphasises the need to ensure that the Regulation 123 list does not include any items of infrastructure intended to be delivered through Section 106 agreements.