The Community Infrastructure Levy: advice note for culture, arts and planning professionals

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1 The Community Infrastructure Levy: advice note for culture, arts and planning professionals Martin J Elson, Emeritus Professor in Planning, Oxford Brookes University April 2012

2 Contents Aims of the advice note... 2 Why culture is important... 2 The benefits of culture... 2 Spatial planning... 2 The Community Infrastructure Levy... 3 The flexibility of the Community Infrastructure Levy... 4 Section 106 agreements... 4 Categories of cultural infrastructure... 5 Main categories... 5 Public libraries... 5 Public archives... 5 Arts space... 6 Museums... 6 Standard charges for the arts and culture... 7 Space and costs explained... 7 How culture can be incorporated into the Community Infrastructure Levy... 8 Policies in development plans... 8 Inclusion in the infrastructure planning and delivery process Form part of the infrastructure funding gap analysis Inclusion in the regulation 123 list for the spending of levy proceeds Support culture spending from Community Infrastructure Levy funds available to locally elected councils Engage in arrangements for the spending of proceeds where appropriate.. 13 Key messages Further reading Arts and culture benchmarks National advice Local examples

3 Aims of the advice note The Community Infrastructure Levy allows local authorities to raise funds towards infrastructure needed to support the development of their areas. A large number of local authorities are intending to use the Community Infrastructure Levy, and are developing draft charging schedules. These justify the level of the levy, and what categories of infrastructure the funds collected will be spent on. This note explains how the needs for cultural and arts infrastructure in association with new development can be established and fed into the Community Infrastructure Levy process. The advice note is for planning, culture and arts professionals involved with development of the levy. It has been produced by Arts Council England, the lead body with responsibility for the arts, libraries and museums in England. Why culture is important The benefits of culture The provision of adequate cultural infrastructure is essential to the creation of truly sustainable communities. Culture and the arts are able to bring people together, create links between different communities, and encourage people to feel a sense of pride and belonging in their local areas. Spaces for culture and the arts play a vital role in social and economic regeneration. It is estimated that the UK s creative industries employ 1.8 million people, making up 7.3 per cent of the country s economy. There is a growing trend towards shared or multi-use facilities. These include flexible multi use arts venues and arts space within educational establishments, wider civic complexes or local community facilities. In design terms, culture and arts buildings and activities contribute to a sense of place, as well as inspiring learning and supporting skills and personal development. Spatial planning The Department of Communities and Local Government regard delivering sufficient community and cultural facilities and services to meet local needs as one of the core principles of the planning system. (National Planning Policy Framework, March

4 para 17). Local plans should include strategic priorities for the delivery, inter alia, of cultural infrastructure (paragraph 156). An effective infrastructure delivery plan, prepared as part of the local plan, is an indicator of soundness of a local authorities development plan, and should demonstrate what infrastructure is needed to deliver the policies in the plan. The Community Infrastructure Levy and section 106 agreements The Community Infrastructure Levy The Community Infrastructure Levy allows charging authorities to raise funds towards the cost of infrastructure needed to support an area s development. There are a range of sources of funding for cultural developments, including local authority capital budgets, the New Homes Bonus, Lottery funding, the proceeds of land sales and in some cases the proceeds of locally-retained business rates. Funds from the Community Infrastructure Levy are therefore likely to only form a part of the total funding picture. The Planning Act (2008) introduced a wide definition of infrastructure for the purposes of the Community Infrastructure Levy, so that contributions towards a very broad range of facilities can potentially be secured. Cultural facilities are seen as within the definition of relevant infrastructure, as the Community Infrastructure Levy overview document states. Community Infrastructure Levy revenues cannot be used to help make up for past deficiencies, but can be used to increase the capacity of existing infrastructure or to repair failing infrastructure. The Community Infrastructure Levy covers developer contributions towards facilities that will benefit an area as a whole. Cultural facilities will therefore largely fall within the levy, as many are strategic, serving catchments and areas larger than most development sites. Contributions received on a tariff basis, as currently for public libraries in many areas, are also likely to fall under the Community Infrastructure Levy. 3

5 The flexibility of the Community Infrastructure Levy The Community Infrastructure Levy authorities have considerable discretion over the expenditure of proceeds. Apart from allocating a meaningful proportion of the revenue back to the neighbourhood where it was raised, they can: spend the receipts themselves (for example towards an arts centre or gallery) pass receipts to other authorities (for example to counties for libraries and archives) pass receipts to other groups, such as charities, for qualifying projects, together with an agreement to ensure delivery of the specified infrastructure use funds for developments outside the charging authority s area, provided that the spending supports the development of their area (an example could be a theatre, where the user catchment covers an area wider than one local authority) Section 106 agreements Section 106 agreements have been scaled back. They can now only be used for the mitigation of on-site impacts. An example could be a new on-site community facility, such as a library, playing fields or a primary school, for a major development of around 1,000 3,000 houses. Other examples are public realm treatments, or on-site environmental conservation measures, which are not amenable to formulae to assess their extent. Approval for the rebuilding or redevelopment of a shopping centre, involving the refurbishment or replacement of a central library or theatre on site, may also be the type of scheme covered under a section 106 agreement. Local authorities will be revising their existing supplementary planning documents to reflect these changes. Bristol City Council is an authority that has already done this. 4

6 Categories of cultural infrastructure Main categories Six main categories of cultural provision are seen as relevant for spatial planning. These provisions focus on community-relevant provision, and do not include major commercial facilities. Most are publicly owned, managed, or regularly funded and supported by local authorities or Arts Council England. Public libraries Local authorities have a duty under the 1964 Public Libraries and Museums Act to provide a comprehensive and efficient public library service to all who live, work or study in an area. Public libraries are places of information, and of free and shared exploration and learning using all forms of media. They should comprise flexible buildings or mobile facilities, with access for disabled people, and diverse groups. Libraries are most often provided in co-located facilities with other cultural, community, retail or sports uses. As the population grows improvements to existing provision (refurbishments and extensions) may be needed to maintain levels of community access. In a few situations, where major growth occurs, there may need to be new provision, often co-located with other cultural facilities. Public archives Local authorities are required to make proper arrangements for documents and records in accordance with the Local Government Act 1972 and the Public Records Act Archives are an expanding resource, with communities using them increasingly to produce information on local and family history, and to develop community identity. Public archives normally comprise a central storage facility with space for users to consult archive material. Most archive facilities have seminar space and dedicated areas for use by visiting groups. As the population grows, storage needs increase, as do the needs for space to consult archive documents, as well as information and communications technology for remote access. 5

7 Arts space This is made up of a typology reflecting community, functional and cost factors, and comprises: galleries, with permanent or temporary exhibitions and related storage, curatorial and education spaces multi use arts venues and theatres; these include small and large multipurpose arts venues with space for performance and exhibitions, workshops, talks and film screenings production, rehearsal and education space for the arts, including studios, education and workshop space (not commercial artists workspace) with associated public and sales space As the population grows, the provision of high quality modern arts facilities may involve: new buildings, extensions and reconfiguration of site layouts to improve and maximise publicly usable space the reorganisation of internal space within an existing building to allow for improved public accessibility, better space for educational purposes, and more convenient back office space space for production, education and rehearsal uses, in addition to that for public performances Museums Museums capture local experience and history and foster shared community, identity and understanding. They also have a role in economic development, providing important visitor attractions and helping to generate income. 6

8 Entirely new museums are rare. More visits and greater access and use will normally be fostered by constructing extensions, re-organising internal spaces and by access improvements. As the population grows there will be a need for increased space for collections, more storage space and increased education and learning spaces for local schools and communities generally. Where new provision is involved it may take the form of a co-located facility. Standard charges for the arts and culture Space and costs explained The expected space and building cost implications of population growth for arts and culture provisions have been researched by the Arts Council and the Museums, Libraries and Archives Council. The recommended space standards and associated costs have been published on the living places website. The overall benchmark for the six types of arts and cultural facility outlined in this advice note is 109 square metres per 1,000 people, at an average build and initial equipment cost of 3,590 per square metre (2009/10 prices). These figures represent the estimated need for an average local authority area in England. Studies of local circumstances will justify modification of these figures to suit local conditions. Arts and culture space standards and recommended charges Type of facility Square metres per 1,000 people Build cost, including initial equipment ( per square metre) Estimated cost per person in new housing Estimated cost for a 2.4 person dwelling Public library 30 3, Public archive 6 3, Arts space: galleries; Multi-use arts 45 3,

9 venues and theatres; and production, rehearsal and education space Museums 28 3, Total * 862* * rounded figures How culture can be incorporated into the Community Infrastructure Levy The main aims should be to include the arts and culture in: policies in development plans the infrastructure planning and delivery process, involving analyses of needs and listings of relevant projects any infrastructure funding gap analysis used to justify the need for the Community Infrastructure Levy the regulation 123 list, which specifies what categories of infrastructure the Community Infrastructure Levy contributions can be spent on proposals by elected local councils (or other neighbourhood groups) in receipt of earmarked funds for use close to where development and growth takes place arrangements for the spending of proceeds, where appropriate Policies in development plans Culture, including the arts, is a neglected area in development planning. They should form part of the policies in the local development plan. The House of Commons Communities and Local Government Committee has stated that there is a compelling case for the definition of sustainable development to include a cultural 8

10 dimension, and that this should be introduced into the National Planning Policy Framework. Policies and provisions should be based on an analysis of arts and cultural needs in the context of the growth described in the plan. Such inclusion will give the legitimacy to allow expenditure on cultural/arts projects to benefit those who live in a local area. Method of analysis could include: mapping the location, pattern of use and spatial catchments of relevant facilities using the Arts Council England space benchmarks, outlined above, to give a preliminary assessment of the adequacy of levels of provision appraisal of how far commercial provision may make up for any shortfalls, before making a judgement on needs Relevant supporting analysis of this type has been carried out for Hampshire, including the Partnership for Urban South Hampshire area. Example: the South Hampshire and Hampshire Cultural Infrastructure Audit This study maps the location, pattern of use and spatial catchments of cultural/arts facilities, using the classification of cultural facilities as outlined in this Advice Note. It also assesses the quality and accessibility of facilities, before drawing out a number of themes for policy. Most arts and museum facilities covered had catchments wider than local authority areas, suggesting strategic consideration should be given to new provisions. Libraries had more local catchment and were more suited to local policy. The position for each of the 13 constituent district and unitary authorities is explained as a basis for policies in development plans. The results of the analysis are also feeding into work to develop a strategic Community Infrastructure Levy for the PUSH area. 9

11 Inclusion in the infrastructure planning and delivery process The arts and culture should be specifically considered within the infrastructure delivery plan and infrastructure planning process generally. Within what should be a continuous process, charging authorities should list: proposals for culture relating to the growth envisaged in the plan provisional costings, by reference to locally-derived estimates, or using the figures in the Arts Council England standard charge documents This process has been followed in North Northamptonshire. Example: cultural planning in the north Northamptonshire area (covering Corby, Kettering, Wellingborough and East Northants) The analysis Using the typology recommended in this advice note, a comprehensive mapping profile of cultural facilities identified core assets and pointed to gaps in provision. Apart from theatre and performance space, deficits were found in almost all types of cultural space. The resulting proposed standard charge figures, using the Arts Council and Museums, Libraries and Archives Council advice, and adapted to the situation in North Northants, are included in the Draft Supplementary Planning Document on Development Contributions, published in Adjustment to local circumstances The supplementary planning document adopts a higher figure than the national benchmark for museums (30 square metres per 1,000 people, instead of the recommended 28 square metres per 1,000 people). Museums were divided into two categories, with different levels of fit out and associated cost for local museums as opposed to regional ones. For arts provision, the national benchmark of 45 square metres per 1,000 people was divided into 30 square metres per 1,000 people for galleries, five square metres for multi-use arts venues and theatres, and 10 square metres for production and rehearsal space. 10

12 Form part of the infrastructure funding gap analysis One of the requirements placed on charging authorities before commencing the Community Infrastructure Levy is to demonstrate an overall shortfall, or gap in funding, for future infrastructure needed in the area. In the case of the Community Infrastructure Levy charging schedule for Wycombe District, an estimate of community and sport needs of 3 million forms part of the likely funding shortfall identified over the plan period. In the case of the London Borough of Redbridge, the cost of library improvements required to service growth also forms part of the gap analysis. Example: London Borough of Redbridge The draft charging schedule for Redbridge estimates the infrastructure gap (cost compared to likely receipts) as 220 million over the duration of the plan. Included in this figure is 700,000 of projected expenditure on library improvements needed as a result of growth. See: LB Redbridge (2011) Redbridge Community Infrastructure Levy, Jan 2011 Update, and Draft Charging Schedule. Inclusion in the regulation 123 list for the spending of levy proceeds The charging authority is required to list the categories of infrastructure it will spend the proceeds of Community Infrastructure Levy on, and those categories or projects it will use section 106 obligations to help pay for. This is termed the regulation 123 list. It is prepared by the charging authority, and can be amended by them as often as required by posting the change on their website. In order to avoid double counting, the regulation 123 list should identify what sites and infrastructure can best be delivered through Community Infrastructure Levy and what through section 106 planning obligations. In particular, attention will need to be given to large strategic sites if significant on-site cultural facilities are required. Section 106 will normally be needed for situations where land, for the siting of a facility, is transferred to a local authority. It is therefore of key importance that the arts and culture are represented on the list. It may, for example, specify only that cultural facilities are part of Community Infrastructure Levy, without going into further detail. Ideally the list should separately 11

13 identify public libraries, public archives, arts facilities (including multi use arts venues and theatres and galleries and production space) and museums. Example: regulation 123 list greater Norwich development partnership (Broadland, Norwich and South Norfolk councils) A draft charging schedule for the greater Norwich area contains a draft regulation 123 list detailing the way the division between the Community Infrastructure Levy and section 106 will be treated. Existing tariff payments for libraries will be converted into the Community Infrastructure Levy. However there is insufficient detail at present on other arts and cultural provisions in the absence of any details on cultural needs and projects in the background local investment plan and programme. This situation is unlikely to be unique to the Norwich area. Infrastructure type Funded/part-funded through Community Infrastructure Levy Section 106, or other legislation, and planning conditions Community infrastructure Libraries Transfer of land Art and cultural infrastructure and public realm Off-site enhancements Transfer of land, on-site provisions and enhancements Support culture spending from Community Infrastructure Levy funds available to locally elected councils Charging authorities must ensure that a meaningful proportion of the proceeds of the levy go to the elected local council [neighbourhood] for the area where the growth takes place. Local councils and neighbourhoods have control over the allocation of this money. Cultural and arts facilities are good candidates for this expenditure, and reasonable levels of resources can be expected to come from this source. It should be noted that this locally-determined money could also be spent on strategic facilities. For example, a local council could decide, as part of its plans, to 12

14 contribute some of its levy proceeds to the upgrading of a nearby theatre, or multi use arts centre, whose catchment covered the local area in question. Engage in arrangements for the spending of proceeds where appropriate Charging authorities will have wide discretion on how the Community Infrastructure Levy monies are spent. They are not restricted to spending in line with the evidence base used to devise and justify the Community Infrastructure Levy. However authorities will need to ensure good levels of co-operation between spending bodies, and clear links with upper tier authorities such as counties, for matters such as libraries. Culture and arts organisations will wish to be involved, especially where major growth is being planned and the potential Community Infrastructure Levy yield is large, and where sub-regional and cross boundary partnerships or groups exist to assess infrastructure provision, and allocate Community Infrastructure Levy proceeds. In deciding on the Community Infrastructure Levy expenditure, charging authorities should take account of the following: links to the infrastructure delivery plan the level and type of social and economic benefits for the area how effectively the scheme addresses the impacts of growth the level of funding from other sources the likelihood of early implementation Suitable arrangements to allow for transparency in decision-making should also be instigated. Key messages the Community Infrastructure Levy breaks the link between a specific development and the delivery of a contribution charging authorities have wide discretion over what and where to spend Community Infrastructure Levy proceeds 13

15 overall patterns of future spending from developer contributions can therefore be expected to be more fluid projects for the arts and culture will compete more directly for priority with other items of infrastructure for the available proceeds it is therefore important to have a good quality local evidence base and audit for arts and cultural needs in association with new development a listing of broadly costed projects related to future growth will be needed if arts and culture are to be best represented in this process only by unambiguous inclusion of culture/the arts in the regulation 123 list can the proceeds of the Community Infrastructure Levy be spent on the arts and culture Further reading Arts and culture benchmarks Arts Council England and Museums, Libraries and Archives Council, Arts, museums and new development: a standard charge approach, 2009 ( Museums, Libraries and Archives Council, Public Libraries, Archives and New Development: a Standard Charge Approach, May 2010 ( National advice Department for Communities and Local Government, The Community Infrastructure Levy: An Overview, May 2011 ( Department for Communities and Local Government, Community Infrastructure Levy Guidance-charge setting and charging schedule procedures, March 2010 ( Department for Communities and Local Government, National Planning Policy Framework, Her Majesty s Stationery Office, London, March 2012 ( 14

16 House of Commons, The National planning Policy Framework, Eighth Report of Session , paragraphs 64-67, 2011 ( ) Planning Officers Society, Community Infrastructure Levy and Infrastructure Planning: An Advice Note, October 2011 ( Planning Advisory Service (continuous) infrastructure levy for: summary documents explaining the levy information on the front runners project a list of published Community Infrastructure Levy schedules by local authorities a blog on current issues concerned with implementation See Local examples Audiences South and Cultural Consulting Network, The South Hampshire and Hampshire Cultural Infrastructure Audit, PUSH Quality Places Delivery Panel, 2010 ( Bristol City Council, Revision to Supplementary Planning Document 4, November 2011 ( Greater Norwich Development Partnership, Community Infrastructure Levy: Preliminary Draft Charging Schedule for Broadland, Norwich and South Norfolk, November 2011 ( London Borough of Redbridge, Community Infrastructure Levy, January 2011 ( North Northants Joint Planning Unit, Draft Supplementary Planning Document, November 2010 ( Wycombe District Council, Community Infrastructure Levy Preliminary Charging Schedule, 2011, November ( Wycombe District Council, Supporting Growth: Infrastructure Requirements in Wycombe District to 2026, November 2011, ( 15

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