A quarter of £11m developer tax pot could be passed direct to Leeds community groups

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Community groups in Leeds could be handed up to a quarter of the total collected from a new ‘developer tax’ to help them have a say in shaping their neighbourhoods for the future.

The new Community Infrastructure Levy (CIL), which is due to come into force in April, could be worth £11m a year to the city in total, according to a Leeds City Council report.

Senior councillors will this week discuss the impact of the levy, and how to “maximise” the cash through working closely with community groups.

It has been suggested that community groups could be passed up to 25 per cent of the income.

The council is expected to retain five per cent of the CIL for its own admin costs.

A report to be presented to the council’s cabinet this Wednesday says it is important to “ensure that local communities are involved in receiving the benefits of the CIL income”. It pledges to “continue to work closely with parish councils and other community groups and infrastructure providers...with the aim of shared infrastructure planning and maximising the use of CIL resources”.

The CIL is a Government-backed tax on developers, designed to create a pool of infrastructure funds for cities. It is separate from the existing Section 106 agreements, which are linked to the areas in which developments take place.

The Government wants a “meaningful proportion” of the CIL revenue to be passed directly to local communities.