Discretionary payments agreed for homeowners who made mistakes in CIL applications

West Berkshire Council has started issuing discretionary payments to homeowners who had become liable for Community Infrastructure Levy (CIL) payments due to mistakes made when completing paperwork.

It follows the implementation of a discretionary review scheme introduced by the Council earlier this year which allows residents to put forward their case if they believed they were unfairly charged the levy. The first seven reviews have been completed, with the Council agreeing that six were charged when - had the paperwork been completed correctly - they would otherwise have been exempt from paying. West Berkshire Council will be writing to the homeowners to confirm the outcome of the reviews and to arrange discretionary payments to them. Those homeowners will be receiving discretionary payments between £12,000 and £40,000.

Under the scheme introduced by the Council, any applicant who is unsuccessful at review will have the opportunity to appeal the decision and present their case in person to a panel of councillors for further consideration.

Welcoming the decision Councillor Jeff Brooks, Leader of West Berkshire Council, said:

"As a result of the new review process we introduced homeowners are seeing the return of money they should never have been liable to pay. This is the right thing for us to do, and underlines our commitment to listen to residents and to act with fairness, integrity and a focus on our customers. I am delighted that this issue that has caused so much distress and going back to 2015 is finally being resolved."

West Berkshire Council is believed to be the first local authority to review CIL payments and to make discretionary payments where residents have made mistakes with the paperwork.

The discretionary CIL household review scheme remains open for any other residents wanting to apply for their case to be reviewed. It is part of a broader review of the Community Infrastructure Levy customer experience to improve the service for residents.

What is the Community Infrastructure Levy?

Community Infrastructure Levy (CIL) is a levy charged by local authorities on most new developments. The money is used to pay for new infrastructure, supporting the development of an area by funding the provision, replacement, operation or maintenance of infrastructure. 

While self-builders, residential annexes, and home extensions may be exempt from CIL payments, they must first complete the necessary paperwork for formal exemption. Incorrectly completed paperwork has resulted in some householders being liable for CIL charges and subsequent enforcement action.

Why was the Discretional CIL Household Review Scheme launched?

Anyone building their own house, residential annexes or extending their homes may be exempt from CIL payments but must first complete paperwork to be formally assessed as being exempt. Where the paperwork was not filled out correctly those householders have found themselves liable to CIL charges and subsequent enforcement action if these weren't paid. 

Explaining the issue when changes to the Community Infrastructure Levy process was announced in March, Council Leader Jeff Brooks said:

"This has been a difficult and stressful time for those residents who have found themselves literally paying the price for mistakes on the paperwork. The complex forms, provided by the Government, are overly confusing and easy to get wrong. Coupled with there being no internal appeals process householders were left with no opportunity to address mistakes made and complete the paperwork correctly. To correct this, we are introducing new processes to allow householders to apply to have charges reviewed where they mistakes were made or they think they have been unfairly assessed.

"We have much to do as a new Administration but one thing that is non-negotiable with us is an overriding sense of fairness in how we treat our residents. 

"We move forward together, and we will deliver very good services to the people of West Berkshire always based on integrity, fairness and doing what is right." 

Councillor Brooks made a statement on the issue of Community Infrastructure Levy payments at an Executive meeting on Thursday 14 March. You can watch it below.