A Surrey Council drops differential rates for retail Community Infrastructure Levy

A number of Councils have dropped plans to charge differential retail rates following the successful challenge to Poole Borough Council's Draft Charging Schedule by Sainsburys, which resulted in Poole Borough Council dropping its proposed differential retail rates. 

Elmbridge Borough Council's Draft Charging Schedule had proposed a levy of £125 per sq m for retail development over 2,500 sq m and a levy of £50 per sq m for retail development of between 280 sq m and 2,500 sq m. The Council had proposed a zero rate levy for any retail development of less than 280 sq m.

"This is the first time that a challenge on this basis has been made," said Elmbridge Council. "Whilst opinion is currently divided as to the validity of this challenge, it is considered that, given that the Elmbridge Draft Charging Schedule currently makes such a variation within the retail use class, the Draft Charging Schedule should be modified to set a standard rate of £50 per sq m for all retail development rather than a differential rate that increases to £125 per sq m for retail developments over 2500 sq m."

The Council also delayed the consultation process on its proposed Charging Schedule in order to obtain formal confirmation from the Department of Communities and Local Government (CLG) that the Government was satisfied that the Community Infrastructure Levy regulations provided a legal and appropriate way to collect funds to mitigate the impact of new development on the Thames Basin Heaths through the provision of Suitable Accessible Natural Greenspace (SANGs).

CLG has now confirmed that CIL is an appropriate mechanism for the collection of funds to deliver SANGs mitigation and meets the requirements of the Habitats Regulations, the letter said.

Supermarket chain Asda made representations on the Council’s Draft Charging Schedule, which requested that the charging rate for retail be £50 per sq m for all types of retail, the Council said.

As a Government 'frontrunner’ the Council’s advisors suggested that it would be prudent to modify the Council's Draft Charging Schedule in order to remove any uncertainty about its conformity with the regulations, the Council said.

"Given the advice of the Council’s advisors, it is considered appropriate to modify the Draft Charging Schedule and remove the differential rate between larger and smaller retail uses," the Council said.  "It is recommended that the charge be set at the lower rate of £50 per sq m for all new retail floorspace."

"The higher rate of £125 per square metre for retail development above 2500 sq m should be removed," the Council said.

The Council hopes to submit its Draft Charging Schedule for examination on 21 September, with an aim of adopting CIL in February 2013.