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.

The funds available for each bidding round depend on how much CIL income we have received since the previous round.

We may hold a special bidding round if we receive a large amount of Neighbourhood CIL funding from a major development that places significant demands on a specific locality.

Bidding round spring 2019

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

The final decision on allocations will be confirmed once Merton's scrutiny process has been followed with respect of the decision of Cabinet. Please refer to item 12 on the (15 July 2019 Cabinet) meeting's webpage including the report and decision for the provisional decision.

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

After receiving your views on your priorities for the Neighbourhood Fund over the winter 2016-17 (refer to consultation results and map of neighbourhoods), we carried out our first bidding round 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 will 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 will be available for ward councillors on the Merton Council intranet and at party group offices.


Merton strategic CIL funding

The council 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 for approval capital funding allocations 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.

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

For the duration of the period that Merton's CIL Charge is in effect the Council has been required to publish a list setting out the strategic projects (or types of strategic projects) that it intends could be subject of strategic CIL funding, instead of funding from section 106 planning obligations. This list is known as the "Regulation 123 list".

This list is reviewed in connection with changes to the Council's strategic priorities for the infrastructure required to support development of the borough.  Any changes that Merton proposes to make to this list have to be subject to public consultation in accordance with the regulations and government guidance.

After publishing Merton's initial Regulation 123 list in April 2014 we sought views from the public on a draft revised list in November 2014.

Merton's strategic infrastructure list and questionnaire – November 2014 Consultation

On 20th December 2018 the government published consultation on revised CIL Regulations, which included changes to the information that councils publish with respect of CIL and section 106 spending priorities. This includes removing the requirement to maintain and publish a Regulation 123 list and the introduction of “Infrastructure Funding Statements”.

Infrastructure Funding Statements are proposed 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.   

What happens next

Subject to the final consideration of the changes by Parliament, further information on the finalised requirements with respect to Infrastructure Funding Statements will follow in due course.