Local authorities should be given greater freedom to spend Community Infrastructure Levy funds on skills and training where labour shortages are holding back development, according to the audit, tax and business advisory firm Blick Rothenberg.
The firm points to analysis by the Home Builders Federation (HBF), which estimates that councils are holding around £2.2bn of unspent levy receipts, with the average authority operating the levy thought to hold £13.9m and some holding considerably more.
Mark Cunningham, a partner at Blick Rothenberg, said: “The Government should consider giving local authorities greater flexibility to use a proportion of these funds where skills shortages are holding back development and economic growth.”
He added: “CIL has played an important role in funding infrastructure across the country and should continue to do so, but investing in people is ultimately key to delivering infrastructure. Despite a slowdown in development activity in recent years, these balances continue to rise.”
The Community Infrastructure Levy is a charge that local authorities in England and Wales can levy on new development to help pay for the infrastructure needed to support growth. Councils can use it to fund schools, transport improvements, healthcare facilities and community assets.
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