Campaigners welcome plan to reform building levy

Campaigners who have been charged thousands of pounds in a tax on building work have welcomed a government promise to reform the system.

Community Infrastructure Levy (CIL) was intended as a tax on commercial developments rather than home extensions, a parliamentary debate heard on Wednesday.

However, homeowners had been "ruthlessly exploited" by some councils, Sir Jeremy Hunt MP told the meeting.

Campaigner Khalid Hussain, from Wokingham, Berkshire, said the government's promise to take action could be "life changing" for his family.

He said he was unable to finish an extension at his home because of a £104,000 CIL bill from Wokingham Borough Council.

"We're not able to live in the property at the moment," he said. "My family are living in the annexe at the back. We're struggling day by day at the moment."

Campaigners from Berkshire, Devon, Kent and Surrey were among those who sat in the public gallery at Westminster Hall.

Some homeowners were heavily penalised for making mistakes with the "extraordinarily complex" CIL process, forcing them to sell their properties or remortgage, MPs heard.

Robert Dempster from Devon said: "Everybody agrees that to be hit with a CIL notice because of an error in filling in the forms is outrageous.

"It's tens of thousands of pounds that we've been charged and everybody I speak to agrees it's unfair."

David Drew had to pay £292,000 in CIL to Wokingham Borough Council for a self-build property.

He said: "It's great that everybody turned up to support the cause today.

"We've paid the council a considerable sum of money which has been wrongly charged.

"The possibility that things might happen retrospectively, is very good news for us."

Community Infrastructure Levy is a tool for local authorities to raise money for infrastructure, according to the government website.

It is not charged by all councils and they apply different rates.

Self-build homes and extensions can be exempt, but a formal exemption must be obtained from the council before work starts.

Housing Minister Matthew Pennycook said he hoped to have new regulations ready for consultation before the parliamentary summer recess.

He added: "It is certainly not the case, that when it comes to those already affected by this issue, that we intend to do nothing."

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