Neighbourhood Community infrastructure Levy (NCIL) - FAQs

NCIL must be spent with regard to the requirements of national legislation and regulations and the council's local priorities, policies, and criteria. Local policy is set out in the CIL Spending Policy Statement, which you can find below.

CIL Spending Policy Statement 2022

What is development?​

The legal definition of planning is "the carrying out of the building, engineering, mining or other operations in, on, over or under the land or  the making of any material change in the use of any buildings or other land". Therefore, development can adversely impact the communities or environments (natural or built)  they are built within. ​ 

Development refers to building activities like constructing new homes, offices, and shops and modifying existing structures. These changes can affect communities and the environment. Most developments pay fees like CIL or S106 to balance the impact, often by improving infrastructure.

For example, a new block of flats may require green space for children, which NCIL funds could create. 

What is infrastructure?​

Infrastructure is like the cement that holds developments together. Developments must have the infrastructure to support them.​ 

​Infrastructure serves as the foundation that supports developments. As development increases in an area, there is a greater demand for additional services, considered infrastructure. S106 and CIL funds are collected from new developments to ensure the necessary infrastructure supports this growth. 

Typically, the council prioritises and delivers the required infrastructure in Westminster. However, through NCIL, anyone in Westminster, such as businesses, Neighbourhood Forums, community groups, residents associations, schools, or individuals, can apply for funding to obtain the infrastructure they believe is necessary for their community to prosper. 

What is growth?

CIL must be spent on public infrastructure needed to support the growth of the City. Growth can come from a new development; for example, a new office building might mean more workers coming to an area. Growth can also come from changes to the population; for example, larger family sizes might mean more children and young people across the City or a part of it. Growth has many benefits, but the proper infrastructure is needed to support it. For example, if a new development has lots of family housing, there is likely to be an increase in the number of children in the area, which might require a new or enhanced playground, which CIL could fund. ​ 

How do I apply for Neighbourhood CIL?​

Any individual or organisation can apply for Neighbourhood CIL funding for any sort of infrastructure project which benefits a local community in Westminster and mitigates the impact of development and/or supports the growth of the City.

The first step is to have a project idea.

Once you know what you would like to apply for, you must then complete the Pre-Application Engagement Requirement. This is when you get support from council officers to determine whether your project is eligible for NCIL funding, and if it is then you will be supported to develop your project and to submit the application.

The next step is to initiate the stakeholder notifications*:

• the Neighbourhood Forums (where there is one)
• local ward councillors
• Business Improvement Districts (where there is one)

*All relevant forums and councillors should be notified, based on the neighbourhood area and wards where the project is proposed to be delivered, the neighbourhood pot from which funding is being sought, and any other considerations.

Stakeholders must be notified of the application and given an opportunity to respond. You are encouraged to work collaboratively with stakeholders where they have comments or suggestions about your project because they have strong local knowledge from which your proposal could benefit. You will be required to submit evidence that you have notified the stakeholders, including any comments made by the stakeholders.

Once the pre-application engagement is completed and you have undertaken stakeholder notification, you must complete and submit the NCIL application form. The form must be downloaded from our website. Pay close attention to our local policy and the guidance in this FAQs to ensure that your submission demonstrates how the proposed project addresses our criteria and policy. Completed application forms must be submitted via email to [email protected].

What types of projects are eligible?​

NCIL must be spent on the provision, improvement, replacement, operation and maintenance of infrastructure needed to support the City's growth or mitigate the impact of a development. ​ Projects must also meet all of our local policies and criteria and have regard to national legislation and guidance. 

Who can apply for Neighbourhood CIL?​

Any individual or organisation can apply for Neighbourhood CIL funding.

What is the Pre-Application Engagement Requirement?​

Before submitting your application, you must engage with the Infrastructure Planning and Delivery Team. Your application will not be validated unless you have completed Pre-Application Engagement.

This requirement is to help you produce the best application possible with the highest chance of success. Officers will advise you on whether your idea is appropriate for Neighbourhood CIL, and if it is, we will work with you to develop your idea and help you fill out your application. We will identify any issues you will need to resolve or additional information you will need to submit, as appropriate, in order to complete the pre-application engagement requirement.

There are different ways to complete the pre-application engagement requirement. You can attend one of the quarterly NCIL drop-in sessions, where you and others will learn more about the funding and our processes and receive one-on-one advice on your idea. You can also have a phone call or meeting with officers. You can ask about the drop-in session or request a meeting or call by emailing [email protected]. Please ensure you reach out with sufficient time before the application deadline; we cannot guarantee a meeting if you contact us within two weeks of the deadline.

You will be informed in writing when your application has satisfactorily completed the requirement.

What is the stakeholder notification requirement, and how should I meet it?

Applicants must notify three types of stakeholders:

- local ward councillors;

- Neighbourhood Forums; and

- Business Improvement Districts (where one exists).

Find your local ward members.

Find contact details for the relevant Neighbourhood Forum.

Find business improvement districts

All relevant councillors and Neighbourhood Forums should be notified, including those related to the wards and neighbourhood areas where the project is being delivered and the neighbourhood pot from which funding is being sought.

You will need to contact the relevant stakeholders to give them a chance to comment on your proposed project. Introduce yourself and your project and explain that you are applying for NCIL. Stakeholders have strong local knowledge and could provide helpful insights for your scheme. Their views will be taken into account when the application is being reviewed, but they do not hold a veto over the final outcome.

You are also encouraged to engage with those likely to use or otherwise affected by the proposed project. 

You must demonstrate that you have undertaken stakeholder notification in your application form. Tick the box to confirm that you have engaged with the type of stakeholder, and include the names of individuals and organisations. You must provide all correspondence with each stakeholder - particularly evidence that you notified the stakeholders and any comments they made on your proposal - as an attachment to your application. If you engaged with stakeholders other than via written communication (such as a phone call or meeting instead of email correspondence), then you must produce evidence of the engagement, such as meeting notes or a summary of the phone call; the stakeholders might be asked to confirm the veracity of your evidence.

NCIL applications are not subject to formal consultations; the requirement is only that stakeholders are notified of the proposal and given an opportunity to comment. There are also no strict requirements for how the applicant engages with the stakeholders: it can take the form of a meeting, call or email/letter, and can range from a short summary of the proposal to being presented with the full application. This flexibility permits applications from local groups and individuals who would otherwise be unable to run a more robust engagement exercise. It also recognises the varying capacities between the different stakeholders to engage on proposed projects.

When you submit your completed application form by email, you must copy in all ward councillors who you contacted when you did your stakeholder notification.

How do I learn more about my neighbourhood forum, and what do they do?​

The contact details for your forum can be found on the website.

Neighbourhood forums aim to enhance the well-being of an area.

Neighbourhood forums comprising at least 21 members from the local community or elected representatives. They have valuable local insights and can boost your funding chances through meaningful engagement and feedback.

What is a Business Improvement District (BID)?​

Local businesses pay a small fee to join a BID. A BID is a business-led organisation that provides additional or improved services that local businesses have identified. ​ 

What happens after I submit my application?​

Applications are reviewed by the council with regards to:

• eligibility for CIL funding in line with national legislation and regulations
• conformity with local NCIL policy and criteria
• priority of project type and identification in the local Infrastructure Delivery Plan (IDP)
• technical expert views on the project
• local support, including from the stakeholders who are required to be notified
• legal and financial propriety
• councillor support
• other considerations relevant to the application.

Once submitted, applications are processed through the following stages:

1. Validations

Officers review the application to ensure the council has sufficient information to review and determine it. This includes checking that all questions are completed satisfactorily and that all relevant supporting documentation has been attached. Officers might need to request further details. It is essential that all requests for additional and/or clarifying information are provided urgently upon request.

2. Internal officer review

Officers from across the council review the application. This ensures that council expertise is applied to it and that any related projects are identified.

Applications are presented at an internal governance group, and bespoke groups of officers working in relevant subject areas are convened. For example, a project to improve a local street will be presented to the internal governance group of council-wide officers and will also be reviewed by a bespoke officer group comprising officers from the public realm, highways and place-shaping teams.

Also, at this stage, extensive due diligence is undertaken to ensure the application's legal and financial propriety.

3. Member review

Relevant cabinet members are briefed on the applications.

4. Decision taken

Final due diligence is undertaken. A report setting out officer recommendations is presented to the decision-maker. Once agreed upon, the Decision might be subject to a 'call-in period', after which the decision can be formally implemented.

Applicants are informed by email when each stage has been completed.

Following the agreement of the final decision, applicants will be sent a Formal Decision Notice, which indicates the outcome of the application and sets out any terms and conditions for accepting the funding. In some cases, particularly for high-value applications, a Community Funding Agreement will be required.

The process generally takes three to six months from submission to decision.

How do I account for inflation in my funding application?

Each year, rising prices mean you can buy less with the same amount of money.​ 

For example, if you had £100,000 with inflation running at 2% a year on average, after 20 years, it would be worth just £66,761.​ 

If inflation remains at around 8%, after 20 years, that money is worth just under £21,500.

What do you mean by value for money?​

Applicants often focus on cost savings or reductions in surveying or construction expenses. While this information is valuable, it should be considered alongside cost, quality, and sustainability factors encompassing the entire life cycle.

Additionally, you should demonstrate that you have explored more cost-effective solutions for the identified issue. It is important to explain how the public can benefit from the project in the long run. 

If a project lacks longevity, it would not provide good value for money. For example, if an applicant emphasises delivering an infrastructure project at a low cost but lacks plans for its maintenance in the future, it would not be considered good value for money. 

Who should I get to provide the cost quotes in my project plan, and how many should I include?

The cost quotes you provide are completely dependent on the project. If you are applying for full project funding, you must attach documentation of all the quotes you have received. This way, we can assess what exactly the NCIL funding will be spent on. ​

Who provides the quotes depends on who your delivery partners are and which contractors you choose to deliver your project. This is not something we can choose or advise for you. Therefore, your application must be submitted to us with this information considered and provided, as we cannot correctly assess it without this. ​ 

Should I include VAT costs in my funding request?

CIL can fund all costs associated with a project, including VAT. If an applicant expects to pay VAT and wants NCIL to support that cost, that should be reflected in the funding request. If an applicant is VAT-registered and therefore expects to reclaim VAT, then that should not be reflected in the funding request.

Public bodies undertaking activities for the public good are outside the scope of VAT, but if there is any uncertainty regarding whether a project will be subject to VAT, the applicant should seek professional advice. If the applicant does not include VAT in an application but is assessed VAT, then the applicant has responsibility for it. 

Do I need public liability insurance?

​Public liability insurance protects against claims of injury or property damage.

If the council and its contractors deliver your project, then it will be covered by our insurance. However, if you are delivering a project on your own, you might require a policy. You should take advice from your contractor and an insurer.

If I am allocated funding, how long will I have to deliver the project?

​Funding must be drawn down within three years of the date of allocation unless otherwise agreed.

What is a neighbourhood area? ​

In Westminster, there are 21 neighbourhood areas. Neighbourhood areas are distinct from wards as they are planned and managed by the Neighbourhood Forums, which are made up of residents, businesses, and landowners from the area. Neighbourhood areas are created by application from a neighbourhood forum. NCIL is distributed to Neighbourhood areas rather than wards because it gives the communities within those areas greater control over the types of infrastructure –  outlined in the neighbourhood plan they create – that they understand to be required for the area. ​ 

How did you choose the neighbourhood areas? ​

​Neighbourhood areas were based initially on the model of neighbourhood forums, which existed in Westminster before NCIL. Shaping the areas around these forums meant that the various established stakeholder groups would have a high level of knowledge and understanding about the areas to which NCIL would be offered back. ​ ​ 

Why do neighbourhood areas have different amounts of NCIL that they can spend?​

​ There are two reasons why different Neighbourhood Areas have varying amounts of NCIL to spend. ​ 

Firstly, there are different amounts of NCIL available to each of the neighbourhood areas because of the variety of the amount, scale and value of developments in each area. For example, in areas in the centre of the City, where land values are higher, and the developments are often of a larger scale, such as offices or hotels, developers will pay a large proportion of CIL. Compared to a more residential area, where many developments are upon existing houses and therefore much smaller in floor space, these developments will be a considerably smaller fee. ​ 

Secondly, when a Neighbourhood Area has an adopted neighbourhood plan, 25% of all CIL collected from development in the area will accumulate for NCIL, for anyone to apply for, for whatever community infrastructure project they propose. If a neighbourhood area has not adopted a neighbourhood plan, only 15% of CIL collected, capped at £100 per council tax-paying dwelling, can be given back to communities through NCIL. This is written according to UK CIL regulations. Therefore , it is important to encourage your local neighbourhood forum or community group to create a plan so that the community can use as much NCIL as possible. ​ ​ 

This is a fair way to redistribute funds to reduce a development's impact. The amount given to each area balances out because an extension to a house in a predominantly residential area will have a limited impact on the surrounding area, so there is less need to reduce its impact. Conversely, a large office or hotel development is far more impactful on the area around it. The surveying construction costs for certain infrastructure projects in these areas will also be far more expensive, which balances this, ensuring that the impact on communities from development is managed. ​ 

What is a neighbourhood plan? ​

The 2011 Localism Act was adopted to deepen the relationship between planning and the communities within their jurisdiction. Neighbourhood plans ask that communities engage with the planning process by gathering evidence and putting forward policies and sites to guide development. This means that communities have a higher level of control over the types of development that occur within their area. It also means that when applying for NCIL from a neighbourhood area, there is a corresponding plan that can guide the proposal. 

NCIL applications for projects which are identified in a Neighbourhood Plan are prioritised for funding.

The neighbourhood areas which have an adopted neighbourhood plan are:​ 

• Belgravia ​ 
• Mayfair ​ 
• Fitzrovia​ 
• Soho ​ 
• Queens Park​ 
• Pimlico​ 
• Knightsbridge​ 

View all of the neighbourhood plans. If you apply for NCIL within one of these areas, please read the policy before making your application.

Which Neighbourhood Area pot should my application seek funding from?​

​ Applicants must identify the Neighbourhood Area pot from which the project would be funded if successful.​ 

There are no geographic restrictions on where NCIL can be spent. Our local CIL policy allows Neighbourhood CIL to be spent within the local neighbourhood area in other parts of the City or even outside of the City. The council encourages neighbourhoods to work together to develop applications for projects that will benefit them jointly. The council also welcomes applications to fund projects entirely within another neighbourhood area.​ 

Most projects determine the Neighbourhood Area based on the location of the project. You can find the Neighbourhood Area using this map Link to map. However, you might wish to seek funding from a different Neighbourhood Area based on considerations including:​ 

• the amount of funding available in different NCIL pots;​ 
• the location of the population served by the infrastructure (particularly where this is different to the location of the infrastructure itself);​ 
• the proximity of other Neighbourhood Areas to the location of the infrastructure and the community it will service, for example, where a project is located near Neighbourhood Area boundaries and​ 
• the relative support/opposition from local stakeholders, amongst other considerations.​ 

What am I attesting to if I sign the Declaration?​

​When you sign the declaration, you are confirming that you are not aware of any financial, legal or reputational reasons that would bring Westminster City Council into disrepute if we were to fund your project.

Providing funding to a project does not represent an endorsement of the applicant, delivery organisation and other stakeholders, but where they would bring the council into disrepute then we will likely refuse the application. Applications can be refused and allocated funding can be cancelled where an individual or organisation associated with the project could bring the council into disrepute, even where the issue is not directly related to the project.

The following issues are examples:

• financial - the organisation is financially unviable
• legal - the organisation is itself or is associated with an organisation labelled as a terrorist organisation by the Home Office
• reputational - the applicant has posted offensive or derogatory comments relating to sex, gender reassignment, race (including nationality), disability, pregnancy, sexual orientation, religion or belief or age on their social media

If you are concerned that something could be considered to be a financial, legal or reputational reason that would bring Westminster City Council into disrepute if we were to fund your project, please let us know as part of the Pre-Application Engagement Requirement process.

I want to apply for NCIL funding, but the building isn't owned by Westminster City Council. Can I apply?​

​Yes; however, the best thing to do is to contact Westminster City Council to understand the legal agreement that will need to be created to support this. We can support this if the property is rented or owned by an organisation, but we will need to discuss this with you in more detail. 

Can I use Neighbourhood CIL to fund a project required by a planning condition or developer contributions agreement?​

​No. Neighbourhood CIL must not be used to fund projects or anything else required by a planning condition or a developer contributions agreement, such as a Section 106 agreement or Section 278 agreement. Applications for such projects will not be validated. Applicants must confirm that their project is not required by a planning condition or planning agreement in section 2 of the application.

Project types: CCTV​

​We are not currently accepting applications to fund CCTV cameras or networks. The council is revisiting its corporate approach to CCTV. No NCIL funding will be allocated to such projects until this approach is agreed upon.