Section 143: Application of CLA receipts, Levelling-up and Regeneration Act 2023

CLA regulations must require a local planning authority which receives sums that represent financial benefit derived from CLA options over land in its area ("CLA receipts") to apply them, or cause them to be applied, to—

support the development of an area by funding the provision, improvement, replacement, operation or maintenance of infrastructure, or

fund the operation of community land auction arrangements in relation to its area.

Subsection (1) is subject to the following provisions of this section and sections 144(1) to (3) and 145(2) and (3).

CLA regulations may make provision about the extent to which the CLA receipts received by a local planning authority may or must be applied to funding the provision, improvement, replacement, operation or maintenance of infrastructure of a particular description.

In this section (except subsection (6)) and sections 144(2), 145(2) and 146 "infrastructure" includes—

roads and other transport facilities,

flood defences,

schools and other educational facilities,

medical facilities,

sporting and recreational facilities,

open spaces,

affordable housing,

facilities and equipment for emergency and rescue services,

facilities and spaces which—

preserve or improve the natural environment, or

enable or facilitate enjoyment of the natural environment, and

facilities and spaces for the mitigation of, and adaptation to, climate change.

In subsection (4)(g) "affordable housing" means—

social housing within the meaning of Part 2 of the Housing and Regeneration Act 2008, and

any other description of housing that CLA regulations may specify.

CLA regulations may amend this section so as to—

add, remove or vary an entry in the list of matters included within the meaning of "infrastructure";

list matters excluded from the meaning of "infrastructure".

CLA regulations may make provision about circumstances in which local planning authorities may apply a specified amount of CLA receipts, or cause a specified amount of CLA receipts to be applied, towards specified purposes which are not mentioned in subsection (1).

CLA regulations may specify—

works, installations and other facilities whose provision, improvement or replacement may or is to be, or may not be, funded by CLA receipts,

maintenance activities and operational activities (including operational activities of a promotional kind) in connection with infrastructure that may or are to be, or may not be, funded by CLA receipts,

things within subsection (1)(b) that may or are to be, or may not be, funded by CLA receipts,

things within section 144(2) that may or are to be, or may not be, funded by CLA receipts passed to a person in discharge of a duty under section 144(1),

things within section 145(2) that may or are to be, or may not be, funded by CLA receipts to which provision under section 145(2) relates,

criteria for determining the areas that may benefit from funding by CLA receipts, and

what is to be, or not to be, treated as funding.

The regulations may—

require local planning authorities in relation to which section 142 applies to prepare and publish a list of what is to be, or may be, wholly or partly funded by CLA receipts;

include provision about the procedure to be followed in preparing a list (which may include provision for consultation or for the appointment of an independent person or both);

include provision about the circumstances in which a local planning authority may and may not apply CLA receipts to anything not included on the list;

permit or require the list to be prepared and published as part of a CLA infrastructure delivery strategy (see section 146).

In making provision about funding the regulations may, in particular—

permit CLA receipts to be used to reimburse expenditure already incurred;

permit CLA receipts to be reserved for expenditure that may be incurred in the future;

permit CLA receipts to be applied (either generally or subject to limits set by or determined in accordance with the regulations) to administrative expenses in connection with infrastructure or anything within section 144(2)(a)(ii) or section 145(2)(b) or otherwise in connection with a community land auction arrangement;

include provision for the giving of loans, guarantees or indemnities;

make provision about the application of CLA receipts where anything to which they were to be applied no longer requires funding.

The regulations may—

require a local planning authority to account separately, and in accordance with the regulations, for CLA receipts received or due;

require a local planning authority to monitor the use made and to be made of CLA receipts in its area;

require a local planning authority to report on actual or expected collection and application of CLA receipts;

permit a local planning authority to cause money to be applied in respect of things done outside its area;

permit a local planning authority or other body to spend or retain money;

permit a local planning authority to pass money to another body (and in paragraphs (a) to (e) a reference to a local planning authority includes a reference to a body to which a local planning authority passes money in reliance on this paragraph).

For the purposes of subsection (1) a financial benefit is derived from a CLA option if it arises as a consequence of the local planning authority—

exercising the option and developing or disposing of the land which was subject to it, or

disposing of the option.

Section 143: Application of CLA receipts

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