Building levy review welcomed by Surrey council

Housing minister Matthew Pennycook has agreed there have been "unintended consequences" of the community infrastructure levy

A council in Surrey has welcomed plans by the government to review "complex and inflexible" rules around community infrastructure levy (CIL).

The charges are supposed to help offset the impact of large scale developments in an area and help fund the infrastructure to support it.

But some residents under Waverley Borough Council have found themselves paying thousands of pounds in CIL, including Steve Dally, from Godalming, who was charged £70,000 after replacing an existing extension on his home.

Government housing minister Matthew Pennycook admitted a number of "unintended consequences" of the CIL regulations and said he was committed to finding a solution to the problem.

Godalming and Ash MP Sir Jeremy Hunt raised the matter with Mr Pennycook in parliament, the Local Democracy Reporting Service reports.

Sir Jeremy said: "My constituent Steve Dally was charged £70,000 by Liberal Democrat-controlled Waverley Borough Council for the apparent crime of building a home extension.

"I met the housing minister earlier this year to talk about abuse of the community infrastructure levy. Could he update the House on his plans to stop it?"

Mr Pennycook responded: "I can only reiterate the commitments I gave him during that meeting.

"In principle, we are committed to finding a solution to this issue, and I am more than happy to meet him again and update him on the steps we have taken in the interim."

The news has been welcomed by Waverley Borough Council, which has set up its own discretionary review panel to examine cases of wrongdoing. Only two cases have come forward so far.

Councillor Liz Townsend, portfolio holder for planning and economic development at the council, said: "The legislation is overly complex and inflexible, and like many residents we are frustrated by a system that can leave homeowners facing large bills for genuine mistakes.

"We have been pressing the government for reform for some time, so it is encouraging to hear a clear commitment to finding a solution.

"While national legislation limits what councils can do, we are doing everything possible to support our residents."

Mr Dally's £70,000 was eventually refunded.