BNP Paribas wins three more levy contracts

Three local authorities have appointed consultant BNP Paribas Real Estate to advise them on their plans to introduce a new levy intended to raise funds for local infrastructure.

The adviser will undertake Community Infrastructure Levy (CIL) viability assessments for the London boroughs of Tower Hamlets and Ealing, as well as South Oxfordshire District Council.

In a statement, it said that the studies will work out the levels of charges that developers will be able to pay without affecting the viability of developments.

Anthony Lee, director at BNP Paribas Real Estate, said: "While it is seen as an improvement over the previous system of negotiated contributions, CIL requires careful implementation to ensure that the maximum benefit is gained for those communities and residents affected by developments without discouraging new development and growth."

The company has now been appointed by 16 councils to undertake viability assessments, he said.

Meanwhile, Newark and Sherwood District Council in Nottinghamshire today becomes the first local authority in England to begin charging CIL.

Planning permissions granted on or after 1 December 2011 face a charge that varies depending on the type and location of development. For example, retail developments will be charged £125 per square metre in the Newark urban area. Residential rates will vary from £0 to a maximum of £75 per square metre, depending on location across the district.

The council’s cabinet member for sustainable development and regeneration, Roger Blaney, said: "CIL represents a great opportunity to create a long term source of funding to meet our infrastructure needs and support the growth we anticipate in the district."



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