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cilExisting regulations state that the purpose of the Community Infrastructure Levy is to "ensure that the costs incurred in providing infrastructure to support the development of an area can be funded (wholly or partly) by owners or developers of land"But speaking earlier this week during a Lords debate on the coalition’s flagship Localism Bill, government spokesman Earl Attlee said that the Government would launch a consultation this summer that could see the permitted uses of the levy widened.

He was responding to an amendment that sought to allow CIL funds to be used for the "building, improvement and renovation of housing".

Earl Attlee said that the amendment was "unnecessary, as existing primary legislation … already contains the power for levy receipts to be spend on affordable housing. However, regulations currently prevent that".

He added: "I can confirm that we will consult during the summer on making that change through regulations."

Earl Attlee said that ministers would "reflect on whether continuing to limit spending solely to providing infrastructure restricts local authorities’ ability to support and enable development of the area".

He added: "We want to consider whether widening permitted uses of the levy would make the instrument more effective and better placed effectively to promote, support and enable new development."

Liz Peace, chief executive of lobby group the British Property Federation, said: "We are delighted that ministers intend to reflect on the proper working of CIL rather than making decisions in haste.

"However, we would urge them to appreciate that if CIL is diverted away from vital investment in new infrastructure then this will undermine the ability of authorities to deliver development and will compromise economic growth.

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