Islington Council is reviewing its Community Infrastructure Levy (CIL) policy to ensure strategic allocation of funds and address uneven distribution of developer contributions across the borough.
The Community Infrastructure Levy is a charge which can be levied by local authorities on new development in their area. It is an important tool for local authorities to use to help them deliver the infrastructure needed to support sustainable development.
The Islington Executive convened on Thursday 23 October 2025, and agreed to a new CIL allocation process, as detailed in the CIL Policy October Executive 23.10.25. The Executive agreed that available sums within the new Neighbourhood Improvement Fund, after allocation of top-ups, will be used to support a continuing Thriving Neighbourhoods programme.
The top-ups
for the Neighbourhood Improvement Fund (NIF) are designed to ensure each ward receives a minimum level of funding. The top-up for each ward will be the difference between £75,000 and what has been received in Neighbourhood CIL in the preceding year. For example, if a ward did not receive any Neighbourhood CIL, they would receive the full £75,000 top-up. If a ward received £40,000 in Neighbourhood CIL, they would receive a £35,000 top-up.
The top-ups will be funded from the remaining Neighbourhood Improvement Fund (NIF) income from the preceding year. If in a given year there is insufficient NIF income to fund the top ups then the top ups will be proportionally paid per each ward limited by the amount of NIF available.
The Executive noted the current and forecast reduction in developer contributions until 2027/28 will delay the commencement of a new Thriving Neighbourhoods fund and that the alternative option of delivering a saving from a CIL funding swap may need to be considered in the context of the Council's overall financial position at that point. The proposal will deliver a saving of around £66,000 from reduced borrowing costs as developer contributions return to historical levels.
The previous position regarding how CIL is allocated from strategic developments on ward boundaries is to be rescinded, but the reasons for this are not explicitly stated in the provided meeting information.
The updated Terms of Reference of the Borough Investment Panel are noted, but the specific effects on the decision-making process for CIL-funded projects are not detailed in the provided meeting information.
The decision was made at a meeting where Councillor Una O'Halloran was in the Chair, and attendees included Councillor Santiago Bell-Bradford, Councillor Rowena Champion, Councillor Sheila Chapman, Councillor Dr Sara Hyde, Councillor Michelline Safi-Ngongo, Councillor Angelo Weekes, Councillor Flora Williamson and Councillor John Woolf.
