CIL Watch #6: Newark and Sherwood is first council to introduce levy

The latest bumper update of CIL Watch includes news of the first council in the country to begin charging the new developer levy and reports of more authorities taking steps to get their charges in place.

Congratulations to Newark and Sherwood District Council, which, on 1 December 2011, became the first local authority in the country to begin charging CIL. The CIL charges that developers in Newark and Sherwood now face vary by location and development type. For example, retail developments will be charged £125 per square metre in the Newark urban area, while residential rates will vary from £0 to a maximum of £75 per square metre, depending on location across the district. The next two councils to begin charging CIL are likely to be Shropshire and the London Borough of Redbridge – both on 1 January 2012.

Elsewhere, Bristol City Council has issued a preliminary draft charging schedule, setting out its plans for how it intends to charge the levy in its area. Bristol’s charging schedule includes plans to charge developers of residential schemes up to £70 per square metre for floorspace, while retail schemes would face a charge of £120 per square metre. But it says that commercial developments in use classes B1, B2 and B8 would not be subject to a CIL charge. A consultation on the plans runs until 20 January.

Huntingdonshire District Council is a step further along. It has published a draft charging schedule for consultation. According to the consultation, the standard rate charged on new developments will be £85 per square metre for all development types, with some exceptions. The consultation closes in December, and the council said it hopes to adopt an agreed charging schedule in April or May 2012.

Meanwhile, three councils have appointed property firm BNP Paribas Real Estate to advise them on their plans to introduce CIL. The adviser will undertake CIL viability assessments for the London boroughs of Tower Hamlets and Ealing, as well as South Oxfordshire District Council.

Two CIL examinations are also currently underway. This week saw examination hearings into the London mayor’s Crossrail CIL take place (Keith Holland is the examiner). The examination of Portsmouth City Council’s CIL plans is also ongoing. David Hogger has been appointed as the examiner and is expected to submit a report to the council by early December.

Finally, the chancellor’s Autumn Statement, unveiled earlier this week, contained some interesting CIL-related news. It said: "The Government will consider creating a new Enterprise Zone at Battersea and allowing local borrowing against the Community Infrastructure Levy (CIL) to support this, subject to a commitment by April 2013 from a developer to contribute and develop the site. As part of its commitment to enable Tax Increment Financing, the Government will also consider allowing city mayors to borrow against future CIL receipts where this can make a significant contribution to national infrastructure." You’ll be able to read more about this in the next print issue of Planning, out on Monday.

For earlier CIL Watch updates, click here.

To let us know your CIL-related news, please contact jamie.carpenter@haymarket.com Picture by JMR Photography (Flickr).


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