MPs have intervened in the ongoing row over Waverley’s “unfair” and “unintended” use of the Community Infrastructure Levy (CIL).
The committee’s letter, sent on Thursday, October 16, says residents have been hit with unexpected CIL bills for small home improvement projects, stating that the levy originally intended for large-scale developers.
Committee chair Florence Eshalomi, MP for Vauxhall and Camberwell Green, said: “It’s alarming to hear that some homeowners have been hit by unfair charges under the Community Infrastructure Levy regulations.
“I hope the Housing Minister can provide reassurance about the Government’s approach to tackling these unintended consequences and update the committee on what work it is undertaking with local councils to stop unfair CIL charges on homeowners.”
The correspondence also refers to evidence from the CIL Injustice Group, which said in some cases homeowners received letters threatening imprisonment if they failed to pay the charge.
Matthew Pennycook speaks about CIL.
The letter, representing about 50 people across 14 parliamentary constituencies, reported that homeowners undertaking modest projects, such as extensions, annexes, and self-builds, had been left with “crippling and disproportionate” CIL charges ranging from £40,000 to £235,000.
Housing Minister Matthew Pennycook previously told MPs: “It’s very clear to us that the CIL regulations in question are not intended to operate in this way, and we are giving serious consideration to amending them to ensure no one else is affected.”
He added: “You’re right, some councils have given refunds, with West Berkshire being a good example. A series of individuals across the country, households, have been very badly hit by this.”
Waverley Borough Council has so far not followed West Berkshire’s example to reimburse residents affected by the charges, although it has launched an internal review of how the levy has been applied and the process for assessing exemption claims.
During a recent Housing Questions, Godalming and Ash MP and former Chancellor Sir Jeremy Hunt also raised the CIL issue.
Mr Hunt said to MPs: “My constituent Steve Dally was charged £70,000 by Liberal Democrat Waverley Borough Council for the apparent crime of building a home extension.
“I met the Housing Minister earlier this year to talk about the abuse of the Community Infrastructure Levy. Could he update the House on his plans to stop it?”
Mr Pennycook replied: “He knows that we agree there have been unintended consequences of the 2010 CIL regulations. They have unfairly penalised some homeowners. I can only reiterate the commitments I gave him during that meeting, in principle we are committed to finding a solution to this issue.”
Mr Dally, of Godalming, said campaigners had recently been out in “large numbers” collecting signatures for a public petition calling for Waverley to reverse its approach.
“Not a single good word could be heard about Waverley Borough Council,” he said.
“Few residents knew the term ‘CIL’, but many were aware of homeowners being charged eye-watering sums for extensions and thought it was an absolute disgrace.”
An e-petition calling on Waverley to review its CIL decisions and reimburse affected residents has now been launched at https://www.change.org/p/waverley-cil-injustice.
The Community Infrastructure Levy was introduced in 2010 to allow councils to charge developers for infrastructure such as roads, schools and community facilities linked to new housing.
Waverley adopted CIL in 2019. Campaigners say the council has since pursued payments from dozens of residents who made minor planning errors, such as late paperwork submissions, resulting in bills of tens of thousands of pounds.
In January 2025, councillors agreed in principle to consider discretionary reviews of affected cases, but campaigners claim that commitment has not been honoured.
Waverley Borough Council has been contacted for comment.
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