According to the Federation of Small Businesses councils are overcharging smaller house builders millions of pounds by failing to be more flexible on CIL charges.
The FSB says developments of 10 units normally have basic building costs that are 14% higher than larger developments. However; the report found councils do not take these higher costs into account when calculating the level of CIL to be paid.
John Silvester, the POS Communications Manager, said he couldn't believe this was widespread, and that most councils took into acount the costs of building in their local area to identify the appropriate levy charges. He added "the government had exempted 10 units or less from s106 payments but this has been ruled unlawful by the courts. Will CIL be next to be exempted?"