Residents Have Reason To Celebrate As Government Intervenes In CIL Dispute

Published on: 27 Jun, 2026
Updated on: 27 Jun, 2026

By David Reading

Residents of Waverley who were landed with heavy bills due to the unfair impact of the Community Infrastructure Levy (CIL) are this week celebrating intervention of the Government – which has said that councils can compensate those affected.

The CIL is intended to help fund services such as new school places and road improvements for growing communities. Home owners are meant to be exempt, but some self-builders and those extending their homes were mistakenly told that the charge applied to them.

Housing Minister Matthew Pennycook

Housing minister Matthew Pennycook has written to council leaders across the country saying there is nothing to stop authorities making payments to those facing “hardship” because of the bills.

Waverley Borough Council has been at the centre of the national debate on householder CIL, with residents facing charges running into tens and, in some cases, hundreds of thousands of pounds despite developments that would otherwise have qualified for exemption.

Waverley Conservatives have welcomed the Government intervention, saying that it recognises the unfair impact that CIL rules have had on householders.

The Government letter makes clear that councils retain discretion in how they enforce historic cases and confirms that authorities may make ex gratia compensation payments from general funds in exceptional circumstances.

Mr Pennycook’s letter to council leaders said: “Given the relevant regulations and procedures have been in place for over a decade under successive governments, there will naturally be a huge variance as to the reasons why procedural errors may have occurred.

“In some cases, individuals may not have been aware of their CIL liability until works had already commenced. The Government is aware that, beyond the requirement to publish a charging schedule, local authorities may have also taken different approaches to communicating how CIL operates in their area.

“In other cases, individuals may not have understood that procedural errors could result in the loss of eligibility for an exemption, or that such exemptions could not be secured for retrospective permission.

“There will also be significant variance between the types of householder developers themselves – some with higher levels of personal resources and access to professional advice, and others less familiar with regulatory and procedural requirements in the planning system.

“As a result, the circumstances and facts of each case will differ.

“Within this context, the current Government is now proceeding to take action on two fronts. First, we are proposing to consult on amendments to be made to the CIL Regulations to ensure that these issues do not arise again in the future – recognising the need to improve the operation of the CIL regime going forwards.

“Secondly, in recognition of the significant variance in the facts and circumstances of individual cases that will have occurred across many charging authorities since 2014, we are providing some clarity to local authorities over their existing discretion to take action as they see appropriate in specific cases.”

Cllr Jane Austin

Cllr Jane Austin, Leader of the Waverley Conservative Group, said: “This is an important moment for residents hit by huge bills for self-builds and home extensions.

“Many have suffered major injustice. Homeowners across Waverley have faced life-changing charges because of procedural mistakes despite carrying out developments that would otherwise have qualified for exemption.

“Conservatives have driven this issue onto the national agenda from day one, working alongside the CIL Injustice campaign and with the support of our MPs Sir Jeremy Hunt and Greg Stafford.

“Since these cases came to light, we have sought justice and argued that councils should show discretion and compassion where residents acted in good faith.

“Today’s letter is a clear acknowledgement that the Government shares these concerns and highlights the opportunity for resolution.”

Cllr Carole Cockburn

Cllr Carole Cockburn (Conservative, Farnham Bourne) said: “The Government has now confirmed councils are not powerless. Authorities retain discretion over enforcement and may consider ex gratia compensation in exceptional cases. Let us get on with delivering justice for those hit – no more excuses.”

The campaign in Waverley has been led by Steve Dally, who faced the threat of court action, heavy fines and even imprisonment over planning fees charged by Waverley Borough Council. Twenty other residents were in similar situations.

Steve Dally

Mr Dally had been granted planning permission in 2018 to demolish and replace an extension at his Godalming home, which was exempt from the Community Infrastructure Levy (CIL).

Mr Dally was later astounded to find that he faced an unexpected £70,000 CIL charge with no right of appeal.

Last July he was finally told that all action against him has been dropped and any money paid would be returned after Waverley Borough Council admitted its errors. But the fight went on for others affected.

The Guildford Dragon has asked Cllr Paul Follows, Lib Dem leader of Waverley Borough Council, for a comment on the latest development.