Former Chancellor Jeremy Hunt MP has met with Housing and Planning Minister Matthew Pennycook to discuss Waverley’s CIL ‘scandal’.

The Community Infrastructure Levy (CIL) is a charge levied by councils on new developments to fund essential infrastructure such as roads, schools, and health services. However, Waverley Borough Council also applies CIL to homeowners in certain cases, leading some to face penalties running into tens of thousands of pounds after making administrative errors on their planning applications.

Mr Hunt, the MP for Godalming and Ash, said the minister agreed that CIL was never intended to be used in this way and pledged to help resolve the issue.

Waverley Conservative Opposition leader Cllr Jane Austin, who has been leading the campaign to address what she describes as a CIL injustice, also attended the meeting.

Mr Hunt said: “Cllr Jane Austin and I relayed the terrible impact on the many Waverley residents we and Gregory Stafford MP are jointly dealing with.

“CIL at Waverley is having a broader impact – including putting off small housebuilders developing in our area and making homeowners fearful of being hit by huge CIL charges if they extend.”

The problem arises from what Mr Hunt described as the “uneven application” of CIL legislation by councils. While some authorities interpret the rules flexibly in line with their intention – as a developer, not homeowner, contribution – Waverley has enforced them strictly, he said.

“Matthew agreed CIL legislation as presently drafted is unintentionally capturing householders,” Mr Hunt said, adding that he left the meeting feeling confident the Ministry of Housing, Communities & Local Government (MHCLG) is addressing the issue.

However, he warned that resolving the legislation would not in itself secure refunds for those who have already been charged large sums.

“So, I also requested the minister considered providing councils guidance as to how to deliver justice for those historic cases, including formally acknowledging the actions of West Berkshire who successfully implemented a broad justice-based review of cases,” he said.

West Berkshire Council carried out a review that resulted in refunds being issued to residents who had been unfairly charged under CIL rules.

Mr Hunt said that despite West Berkshire not facing any government sanction, Waverley’s Executive has so far refused to follow its example.

“As it stands, many will still not receive refunds,” he said.

Mr Hunt also raised concerns about how councils are using interest earned on unspent CIL funds.

“Many councils across the UK are sitting on huge unspent CIL funds – money we all want to go on much-needed infrastructure,” he said, noting that Waverley topped up its general fund by over £1 million last year using CIL interest as a revenue stream.

He added: “For now, thank you to all local councillors and residents – the fight continues.”

Previously, Waverley has said its “hands were tied” in protecting residents from harsh CIL charges, even when homeowners make honest mistakes.

Lib-Dem council leader Cllr Paul Follows said: “If the council makes an error, we'll do everything we can to put it right,” he said.

“But when a resident makes an honest mistake, our hands are tied. That's why we need national reform. Councils must be given the flexibility to act with fairness and common sense.”