Politics
Durham Council Approves Infrastructure Levy for New Developments, Funds Roads and Schools
The levy applies to developments above 10 units and channels proceeds directly into Durham neighbourhood projects starting in the 2027 financial year.
How we reported this
Durham City Council voted 28-12 on 8 July to adopt a Community Infrastructure Levy on qualifying residential developments. The charge starts at £85 per square metre for schemes of more than 10 homes and will be collected at the point of planning permission.
The decision follows the council's receipt of the latest local plan viability assessment, which showed a £4.8 million shortfall in capital funding for transport and education projects over the next three years. National changes to the New Homes Bonus formula, confirmed in the March 2026 budget, reduced Durham's expected allocation by 19 percent.
Direct effects on Durham households
Residents in the Elvet and Gilesgate wards will see the first funded works, with £620,000 earmarked for resurfacing the A690 section between the railway station and the university. The same report lists £410,000 for classroom extensions at Laurel Avenue Primary School and £310,000 for new bus shelters on the 64 and 65 routes serving Newton Hall. Existing homeowners will not pay the levy, but developers have indicated the charge will be reflected in the price of new properties.
Policy analysts note that the levy replaces the previous section 106 agreements, which often required lengthy negotiations. The new system sets a standard rate published on the council website and collected centrally, reducing the average time from application to payment from 14 months to four months.
Next steps and collection timeline
Officers will publish the final charging schedule by 1 September. Payments begin for permissions granted after 1 January 2027. The council's finance team projects annual receipts of £1.15 million once the levy reaches full operation, based on the current housing trajectory of 480 units per year. Any surplus above the published project list must be returned to the same neighbourhood areas within two years.
Further public consultation on project priorities is scheduled for October at county hall, with written submissions accepted until 15 November.