Community Interest Companies (CICs) offer developers a different way of channelling benefits and planning gain to local communities.
PPS recently helped a wind farm developer transfer control of a CIC to the local community to manage and distribute a ‘Community Benefit Fund’.
At a time when public trust in politicians is at an all-time low, CICs could be one solution to the problem of local politicians hijacking planning gain rather than providing benefits to areas affected by development.
CICs are non-charitable limited companies registered at Companies House. Their purpose is to promote activities for community benefit, rather than private advantage, and they are therefore subject to a “community interest test” and “asset lock”. They are also regulated – see www.cicregulator.gov.uk/
The advantages for a developer are that:
· It is insulated from political control and helps to empower local communities
· Local communities can see that the benefits flow directly to them
· It promotes positive engagement with the local community.
CICs won’t be relevant in every case but if you would like to know about PPS’s experience in this area, please contact charles.stgeorge@ppsgroup.co.uk.
Written by Adam Browning