Where’s all the infrastructure funding anyway?

When plans for new homes come forward anywhere in Devon, you’d bet your house on there being fears about a lack of services to cater for the new residents.

Whether its capacity in the local primary school, the ability for the GP surgery to cater for more patients, the roads to deal with additional traffic, whether the sewers can cope with the extra demand, or any number of other fears, there’s often some concern about the ability of the local area to cope with an inflated population.
Housing developers pay money into a pot overseen by the relevant planning authority, the purpose of which is to help fund the types of improvements that help improve local areas, and make them more resilient in the face of new homes.
One of the more well-known routes councils use to secure funds from developers is called Section 106, however, this routinely relates specifically to improvements on the development itself – such as play parks, cycle paths or new road junctions.
But the other one – known as CIL, or community infrastructure levy – is the one that a constant, circular argument appears to persist.
Residents don’t feel that they can see enough being spent on the infrastructure around them, developers are irked because they don’t believe their contributions are being used, and councils say they routinely allocate funding and don’t sit on it.
Big spenders
Out of the 10 Devon councils that can charge developers CIL, only half do.
Teignbridge District Council appears to have secured the most CIL contributions from the data provided in response to requests about it.
The council said it had received £41.9 million in CIL contributions since October 2014, including £8.9 million passed directly to town and parish councils and £9.2 million to other organisations to help deliver infrastructure projects.
Its latest data shows that as of 31 March this year, it had £25.5 million of CIL funding available to support infrastructure projects, and that all of it had been allocated.
This includes for the likes of the Dawlish link road and bridge, Marsh Barton railway station, improvements to the A382, cycling infrastructure, Matford Ridgetop Park and Broadmeadow Sports Centre improvements.
“Major infrastructure projects can take several years to plan and deliver, which means funding is often allocated before works begin on site,” a spokesperson for the council said.
That could explain why some people perceive the money isn’t being ‘spent’; because it hasn’t actually been used yet, but has a specified purpose that it will be spent on.
Over at Plymouth City Council, around £11 million of CIL has been secured since 2013/14, with £9.3 million spent and £1.6 million unspent but all allocated.
Projects have included a new central library for the city, public realm works in the city centre, community infrastructure as part of the North Prospect regeneration, the Forder Valley interchange and so-called ‘blue’ infrastructure, that works to ensure the impacts of development on the European Marine Site are mitigated.
In East Devon, its latest report covering CIL between April 2024 and March 2025, showed it had requested just over £4 million in that time, and received just under £1.9 million.
At the time, it had just over £10 million that it had secured prior to the 12-month period covered by its report that had not been allocated.
But just a few months later, in May 2025, it announced it had allocated the cash to seven community projects, including Tithebarn/Mosshayne Primary School, Clyst Meadow Country Park, a walking wheeling and cycling route to improve active travel between Cranbrook and Exeter, and towards an extension for Pinhoe Surgery.
It’s understood Exeter City Council doesn’t have a big CIL surplus, and allocates payments as soon as possible, but a spokesperson for the authority said it was unable to comment further. Torbay Council declined to comment.
Mind the gap
Interestingly, Mid Devon District Council said a decision was made in 2021 not to pursue CIL, but that as it embarks on drafting its forthcoming local plan, this could change.
“While there is an opportunity for the council to prepare a new draft charging schedule alongside the plan, the merits of this will require careful consideration,” a spokesperson said.
“Meanwhile, the council can require developer contributions towards helping to secure affordable homes and infrastructure through S106 planning obligations.”
Up in North Devon, it too eschewed the opportunity to charge CIL, and has instead stuck with Section 106 agreements.
“The decision reflected a range of considerations at the time, including the effectiveness of the existing Section 106 approach in securing site-specific mitigation and infrastructure contributions, the viability of development within the area, and the practical implications of introducing and administering a CIL regime,” a spokesperson said.
“Developers contribute to North Devon’s local infrastructure, including healthcare, highways, education and public open space through Section 106 contributions.”
That decision could centre on the fact Section 106 usually relates to the development itself, whereas CIL asks developers to contribute to a pot that the respective council then decides where it should be spent.
“One of the key benefits of CIL is that it allows the council to plan ahead and combine contributions from multiple developments to fund larger infrastructure projects, as well as local community improvements,” the spokesperson from Teignbridge District Council said.
“This differs from Section 106 funding, which is usually restricted to specific projects linked to individual developments.
“CIL gives the council greater flexibility to invest in the infrastructure communities need across the district.”
Several of the county’s most senior political figures – including David Reed MP (Exmouth and Exeter East) – are pushing for an ‘infrastructure-first’ approach when it comes to housebuilding.
But what’s possibly telling, is that when East Devon allocated its recent £10 million of CIL funding – it had £17 million worth of requests sent in vying for that cash.
With all of Devon’s CIL allocated, yet seemingly outsized demand for it, the public might well be looking to politicians of all levels to see how that gap, which likely exists in all areas, can be filled.