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Spending the Community Infrastructure Levy

Expenditure of Merton’s Community Infrastructure Levy income has to be split under the CIL Regulations in the following way:

  • 15% of the money received must be spent on priorities to address demands that new development places on our neighbourhoods in Merton. This portion of the income is used to fund two pots of money, the first is called Merton's Neighbourhood Fund and the second is called Merton’s Ward Allocation Scheme.
  • Up to 5% can be used to administer CIL in Merton
  • The remaining money, may be spent on infrastructure projects that benefit the whole borough. This is called Merton's Strategic CIL Funding.

Neighbourhood Fund

The Neighbourhood Fund is available for projects that Merton Council and communities have decided would address their priorities for Neighbourhood Community Infrastructure Levy spending.

The process for allocation and governance of Merton's Neighbourhood Fund was approved at Merton's Cabinet meeting on 18th September 2017 (Item 4 – The Neighbourhood Community Infrastructure Levy – governance).

We hold bidding rounds when we deem appropriate – usually not more than once a year – based on the level of CIL income that is available.

Bidding round 2021

Our fourth bidding round was open from Friday 9 July 2021 to Friday 10 September 2021

Further information is available and updates will be published at the following link:

How to apply to the Neighbourhood Fund (including announcements on forthcoming bidding rounds, bidding forms and deadlines for bidding)

Bidding round 2020

We carried out our third bidding round in late spring/early summer 2020. £1,413,819 funding was awarded across 18 projects.

The full report and decision can be viewed on the 7 September 2020 Cabinet meeting webpage at this link.

Additional Neighbourhood Fund allocations November 2020

A further four projects were allocated funding by Cabinet on 9 November 2020 using funding that was available for the bidding round 2020 but left over after the 18 allocations agreed by Cabinet in September 2020. The details of the allocations including the reasons why these projects required funding to be allocated in advance of the next bidding round can be viewed on the 9 November 2020 Cabinet meeting webpage at this link. 

Bidding round spring 2019

We carried out our second bidding round over the spring 2019.

At its meeting on 15 July 2018, Merton's Cabinet selected projects for allocation of £0.98 million of Neighbourhood Funding. For the decision including the list of projects, please refer to item 12 on the (15 July 2019 Cabinet) meeting's webpage including the report and decision.

Bidding round winter 2017-18

The first bidding round was carried out over the winter 2017-18. 

Projects were selected for allocation of £1.6 million of Neighbourhood Funding in March 2018. For the decision including the list of projects please see the decision pack for the Neighbourhood Fund 2018.

Merton’s Ward Allocation Scheme

Funding of £15,000 is available for every ward in Merton to spend on specific types of public space projects under the Merton's Ward Allocation Scheme. 

The scheme was approved by Cabinet on 14th January 2019 (Cabinet agenda item 12).

Starting from 1 April 2019 ward councillors have ben able to select from a list of project types to be funded by the £15,000 for their wards. The list is made up of small-scale public space project types which are not already covered by the council's contracts with idverde, Veolia or FM Conway and meet criteria set out by the government for spending the Neighbourhood Community Infrastructure Levy.

Ward councillors can make proposals for as long as sufficient funding is available provided that the funding can be spent by 31 March 2022. All three ward councillors will need to approve any application to spend the £15,000 for their ward. Once all three ward councillors have given their approval for a proposal it will need to be submitted to the Council for feasibility checks, before spending can commence.

Application forms and more information on the ward councillor role and how the Ward Allocation Scheme will be implemented is available for ward councillors on the Merton Council intranet and at party group offices.

Merton strategic CIL funding

Merton keeps its strategic CIL spending priorities under review and allocates funding to strategic infrastructure projects that support the demands that development place on areas as they arise.  Appropriate funding priorities are identified through the Council's Capital Programme Board and allocations are approved though the relevant authority  under the Council's Constitution.

£2.708 million of this funding has been allocated towards constructing the new Morden Leisure Centre, which was opened in November 2018.  See report and minutes of Council meeting on 12 April 2017 where this allocation was approved.

Further strategic CIL allocations were approved in 2018-19 to support the Capital Programme, the details of which will either be provided in annual Merton CIL report for 2018-19 to be published in December 2019 (for annual Merton CIL please see Merton's Annual Monitoring Reports) or in Merton's first Infrastructure Funding Statement to be published in December 2020 (see below) alongside allocation approvals in 2019-20.  

What happens next

In the spring, the Council is due to consider allocations – identified through its Capital Programme Board – of strategic CIL to infrastructure projects included in its capital programme and to new projects proposed to be added to the programme.   

CIL and S106 priorities

On 1st  September 2019 changes to the information that councils are required to publish with respect of CIL and section 106 came into effect. This included removing the requirement to maintain and publish a Regulation 123 list (select these links to Merton's obsolete Regulation 123 list and Merton's strategic infrastructure list and questionnaire – November 2014 Consultation) and the introduction of “Infrastructure Funding Statements”.

Infrastructure Funding Statements

Infrastructure Funding Statements (IFSs) have been introduced to provide a more flexible tool than Regulation 123 lists by setting out the local authority’s priorities and delivery with respect of infrastructure delivered with the help of CIL and section 106 planning obligations. IFSs are to be published annually in December and are to provide delivery information with respect of the most recently completed financial year.

What happens next

Our first IFS will be published in December 2020, and cover the financial year 2019-20. This will include a written statement on our priorities for spending Merton CIL.

During 2020 we will be working on developing its Infrastructure Delivery Plan (or "IDP") with its infrastructure delivery teams and partners, to support the preparation of its new Local Plan. The IDP will set out the infrastructure priorities across the 15 year development plan period of the Local Plan and will provide a basis for preparing annual IFSs. 

Alongside the IDP, our Capital Programme Board will identify specific funding priorities for Merton CIL which will inform the written statement for the IFS.