How CIL can be spent

Extract taken from BANES guidance:

7. How must the ‘Neighbourhood CIL Portion” be spent by the Town/Parish

7.1 The CIL Regulations require the neighbourhood portion of CIL (NCIL) to be
used to support the development of the local area by funding:
“The provision, improvement, replacement, operation or maintenance
of infrastructure; or
Anything else that is concerned with addressing the demands that
development places on an area”

7.2 This provides Town/Parish Councils with a more flexible approach for
spending their NCIL receipts in comparison to the powers of District Council.
Such wider spending powers for the Town/Parish Council allow the local
community to decide what they need in order to help mitigate the impacts of
development in their area.

7.3 Notwithstanding this freedom there are a number of factors that should be
considered when developing a NCIL spending plan.
 CIL cannot be used as a replacement for everyday Town or Parish Council
expenditure and misspent NCIL can be claimed back by B&NES Council.

 Be aware of the wider ‘strategic’ infrastructure in your area, there might be
a benefit of combining B&NES Strategic Funds and Local Funds for timely
 Town and Parish Councils will need to consider the capacity of existing
groups and local residents to engage in the NCIL process and to ensure
that such processes are inclusive, and that all members of the community
contribute to determining how NCIL may be spent, including those who are
least vocal and most vulnerable.

 There is a temptation to spend NCIL receipts quickly on short term
infrastructure projects, however Town and Parish Councils should
consider the long term housing growth and resulting infrastructure needs

when developing plans for the spending of NCIL.

7.4 Areas could use some of the funding to develop a neighbourhood plan where
it would support development. In addition, B&NES Council suggest where
appropriate, that Parish and Town Councils consider preparing a Plan to
inform their spending decisions. Such a plan may provide a framework to
consider priorities, and capture opinion on the needs and wants of residents
and identify opportunities for collaborative spending with other groups, to
achieve the best use of funding sources for the benefit of the community.

7.5 Decisions on the expenditure of the ‘neighbourhood portion’ funds are at the
Parish Council’s discretion, provided that it is in accordance with the CIL
Regulations. Approval for spending of NCIL is not required from B&NES
Council, however Parish/Town councils are accountable for spending their
NCIL money. An annual report must be published setting out a statement of
receipts and expenditure and summarising the projects which utilised NCIL

  • Posted: 8th July 2022