Chelmsford CIL has zero rate zone for major urban development

The proposed  charge for all residential development in the "North East Chelmsford development" was set at a zero rate, to improve the viability of the proposed 4,350 home scheme.

The preliminary draft charging schedule (23-pages / 600 KB PDF) has proposed splitting the borough zones. Zone one would cover the proposed North East Chelmsford development and would be charged at a zero rate per square metre and zone two would cover residential development in the rest of the borough and would be charged at a rate of £125 per sq m.

The Council's viability study concluded that residential development across the borough "can sustain a CIL charge without compromising the overall economic viability", with the exception of the proposed new urban development.

"The exception is development on the strategic greenfield allocation at north east Chelmsford which accounts for over half of the new homes to be built in the period to 2021, the draft Charging Schedule said. 

"The evidence shows that the cost, need and requirement for strategic infrastructure to serve the greenfield location in north east Chelmsford in the period up to 2021 makes the imposition of an additional CIL charge very likely to prejudice the overall viability and deliverability of strategic development in north east Chelmsford." 

The Council has proposed a differential food and non-food retail levy. For food retail development, a proposed rate of £225 per sq m has been consulted on, and non-food retail is proposed to be charged at £87 per sq m.

The proposed retail rates, for food and non-food, apply across the Borough and do not include differential rates across different zones, as with the residential development.

Thurrock Council has also finished consulting on its proposed preliminary draft charging schedule. It proposed two residential zones, which attract a levy of £38 per square metre and a zero rate per square metre. 

All other non residential rates are proposed to be charged either a nil rate, £25 per square metre, or up to £150 per sq m. 

Both Councils will consider the representations made on their respective preliminary draft Charging Schedules before producing a draft Charging Schedule. The draft Charging Schedule will then be published for consultation and examined by an inspector before it can be adopted, subject to the Examiner declaring the Charging Schedule "sound".