CIL London 2026: Hounslow’s £4.7m Funding and Construction Delivery Risk

Across London, infrastructure delivery is increasingly dependent on developer contributions secured through the planning system. On 10 February 2026, Hounslow Council’s Cabinet approved the allocation of £4.7 million of Community Infrastructure Levy (CIL) funding, with the decision formally published on 13 February 2026.

The funding, sourced entirely from charges levied on new development, will support a range of projects including transport, health, energy and public realm improvements. While the allocation reflects ongoing investment in local infrastructure, it also highlights a structural dependency within London’s construction system.

Infrastructure delivery is not independent of development. It is directly linked to the progression of construction projects that generate funding through CIL. Where development slows, the availability and timing of infrastructure investment is also affected.

Community Infrastructure Levy and Construction Delivery

The Community Infrastructure Levy (CIL) is a planning charge applied to new development, intended to fund infrastructure required to support growth. Local authorities collect CIL contributions as development is implemented, with funds allocated to projects identified within Infrastructure Delivery Plans and Infrastructure Funding Statements.

In practice, this creates a direct relationship between construction activity and infrastructure funding. Contributions are only generated when development progresses, meaning that delays, viability constraints or stalled schemes can affect both the amount and timing of infrastructure investment. As a result, construction delivery and infrastructure provision are interdependent, rather than sequential processes.

Allocation of Strategic CIL Funding in Hounslow

Hounslow Council has approved a total allocation of £4.7 million in Strategic CIL funding, divided between council-led projects and external delivery partners.

The programme includes:
  • £3.663 million allocated to council-led capital projects
  • £1.016 million allocated to projects delivered by external organisations

Key investments include:
  • £701,000 to progress the redevelopment of Brentford Fountain Leisure Centre, including design and community engagement
  • £688,000 to support the District Heat Network, providing low-carbon energy to approximately 3,000 homes
  • £330,000 for priority cycle lanes and active travel infrastructure
  • £200,000 for electrical infrastructure upgrades at West Middlesex University Hospital
  • £400,000 for sports facility improvements at Swyncombe Avenue

Additional allocations support flood risk mitigation, public realm improvements, parks upgrades and biodiversity initiatives.

Dependency of Infrastructure on Development Activity

CIL funding is generated through development, creating a direct dependency between construction activity and infrastructure delivery.

This introduces a number of constraints:
  • Infrastructure funding is dependent on projects progressing to construction
  • Delays in development can defer or reduce available funding
  • Phasing of construction influences the timing of infrastructure delivery

In practice, infrastructure provision cannot be fully realised unless associated developments move beyond planning and into delivery.

Financial Role of CIL in Local Authority Strategy

Beyond infrastructure delivery, CIL also plays a role in local authority financial management.

By allocating Strategic CIL funding to projects already included within the capital programme, Hounslow Council estimates annual savings of over £200,000 through reduced borrowing requirements.

This demonstrates that developer contributions are not only a delivery mechanism, but also a financial tool used to manage public sector exposure and capital investment strategies.

Alignment with Local Plan and Growth Objectives

The allocation is aligned with the Hounslow Infrastructure Delivery Plan (May 2025) and the borough’s Local Plan, linking infrastructure investment to:
  • Planned housing growth
  • Population increase
  • Long-term regeneration strategies

However, alignment at policy level does not ensure delivery at project level. The translation from plan to construction remains dependent on viability, timing and market conditions.

Delivery Risk Where Development Does Not Progress

A fundamental risk within the CIL model is that funding is contingent on development being delivered.

Where schemes are delayed, reduced in scope or not progressed, CIL receipts may be lower than forecast, affecting the ability to deliver infrastructure.

In London, where a growing number of consented schemes are not moving to site, this creates a systemic risk linking planning, funding and delivery outcomes.

Implications for Construction Delivery in London

For construction professionals, developer-funded infrastructure introduces additional layers of complexity.

Key implications include:
  • Infrastructure programmes linked to private sector viability
  • Increased sensitivity to market conditions and cost pressures
  • Coordination challenges between public authorities and private developers
  • Potential delays where funding is dependent on development progression

As a result, construction delivery is influenced not only by planning approval, but by the financial mechanisms underpinning infrastructure provision.

Evidence-Based Summary

The delivery of infrastructure through developer contributions is not driven by a single factor but by a combination of planning policy, construction activity and financial viability. While allocations such as Hounslow’s £4.7 million demonstrate how infrastructure is funded, evidence shows that delivery depends on whether associated developments progress to site. In practical terms, where construction is delayed or does not proceed, infrastructure funding may also be affected, creating wider implications for delivery across London.


Mihai Chelmus
Expert Verification & Authorship: 
Founder, London Construction Magazine | Construction Testing & Investigation Specialist
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