Wandsworth Council has set out proposals for a Community Infrastructure Levy for developments across the borough, with tariffs up to £575 per sqm.
They say the new development tariff system would raise tens of millions of pounds every year.
Wandsworth’s draft CIL charging schedule sets a levy of £250 per square metre for residential development across the vast majority of the borough, and no charge for other types of development including new retail or office space.
In the Roehampton regeneration area there would be a zero levy across all types of development to ensure the regeneration process can go on unhindered.
Within ‘Area A’ of the Nine Elms opportunity area there would be a charge of £575 per square metre on residential development. The council says this reflects high and increasing property values here and the need for major transport upgrades including the planned Northern Line Extension.
Throughout the rest of opportunity area – called Nine Elms Area B – a levy of £265 per square metre would be applied to new residential development.
Across both Nine Elms Areas there would be a charge of £100 per square metre for office and retail space and zero for other types of development.
Wandsworth’s draft charging schedule has now been submitted for independent examination which will scrutinise the proposed tariffs to ensure they are fair and affordable.
The council’s CIL charges would be in addition to the Mayor of London’s CIL which is set to be introduced on 1 April, 2012.
Assistant director for planning and environmental services Seema Manchanda said: “Our levy must strike the right balance between affordability and securing the funding we need to support the new homes and jobs development projects bring to the borough.
“The Nine Elms tariffs reflect the high levels of growth now underway and the need for major infrastructure upgrades to support this expanding community. Several major landowners have already applied the proposed levy to their schemes so we know the rates are affordable.
“In Roehampton we have opted for a zero levy on all types of new development to ensure the area’s regeneration programme remains viable and can go on unhindered.
“Across the rest of Wandsworth we have proposed a zero tax rate on all non-residential forms of development including new shops and offices. The introduction of a charge on projects of this nature would undermine viability and could prevent new schemes coming forward. This is not the case for residential development where our proposed charge of £250 per square metre is affordable and would generate millions of pounds to improve local infrastructure.
“The tariff system will provide the industry with greater cost certainty and will offer residents a clear and direct benefit from development projects close to their homes.
“It will also speed up the planning process which can become held up by long and complex negotiations over infrastructure payments. This is a needless drain on both parties’ resources and a set tariff will offer a much simpler, faster and more transparent approach.”
The draft charging schedule was drawn up following consultation with local residents and the development industry. It has now been submitted and the examiners report is expected in May 2012.
The hearing stage of Wandsworth’s examination will take place at the Town Hall on April 3 and April 4 this year. The levy could then be formally adopted later in 2012.
Further information on the examination is available at www.wandsworth.gov.uk/cil
Wandsworth was selected as a ‘front runner’ council which would bring its detailed proposals forward for examination at and early stage.
Wandsworth’s full draft charging schedule is available on the council’s website, including a map showing the different levy charge zones.
