CIL Watch: Examiner approves London legacy corporation's higher levy charges

An examiner has approved a series of new charges to be introduced as part of the London Legacy Development Corporation's (LLDC's) revised Community Infrastructure Levy (CIL) charging schedule, including a 23 per cent rise in rates for residential schemes.

The Queen Elizabeth Olympic Park (pic: Getty)
The Queen Elizabeth Olympic Park (pic: Getty)

The LLDC first adopted a CIL charging schedule in April 2015. The revised schedule includes inflation-linked increases to rates across the board and new charges for development taking place within the Stratford Retail Area.

Examiner Mike Fox concluded that the revised schedule "provides an appropriate basis for the collection of the levy in the area" and "is set at a level that will not put the overall development of the area at risk".

Offices and 'comparison and other retail' in the Stratford Retail Area were previously zero-rated but will now be subject to a charge of £123.17 per square metre.

All other uses in the Stratford Retail Area will now be subject to a charge of £20 per square metre, except education, healthcare and affordable workspace uses, which remain zero-rated.

The rate for residential development is to be increased from £60 to £73.90, while charges for student accommodation, hotels, and 'convenience supermarkets and superstores and retail warehouses' will rise from £100 to £123.17.

According to the examiner's report, the LLDC's 2018 Infrastructure Delivery Plan identifies the need to raise £303,132,000 for strategic infrastructure projects. "This is probably a conservative estimate," the report says.

The examiner recommended two changes: introducing a reference to the correct RICS index to be used to calculate charges, in accordance with the 2019 CIL Amendment Regulations; and the use of a clearer boundary line to identify the Stratford Retail Area.

The revised charging schedule was submitted for examination in March 2019 and examination hearings were held in September.

Earlier this month, the government announced that councils will be allowed to temporarily relax CIL rules for developers with an annual turnover of less than £45 million, as part of plans to restart the housing market after the coronavirus pandemic.

CIL UPDATES

CONSULTATION NEWS

London: Lambeth Council has opened up bids for CIL neighbourhood funding to community organisations seeking financial assistance during the coronavirus pandemic.

London: Merton Council is accepting bids for CIL neighbourhood funding until 3 July.

London: Southwark Council is consulting residents on how neighbourhood CIL funding should be spent. The consultation runs until 31 May.

EXAMINATION NEWS

London: A virtual examination hearing to discuss Camden Council’s revised CIL charging schedule will be held on 27 May.


Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Sign up now
Already registered?
Sign in

Join the conversation with PlanningResource on social media

Follow Us:
Planning Jobs