Out-Law / Your Daily Need-To-Know

Chelmsford Borough Council has unveiled its proposed Community Infrastructure Levy Charging Schedule. The Levy would be charged on new specified new developments in the Essex district and would be used to fund local infrastructure.

Chelmsford Borough Council's preliminary draft Charging Schedule proposes two charging zones for residential development, which range from a zero rate per square metre to £125 per sq m.

Under the preliminary draft Charging Schedule (23-page / 601KB PDF), Chelmsford has been split into two zones for the purposes of residential development.

Zone A covers a small area of greenfield land to the north east of Chelmsford town centre and is subject to zero rate per sq m. Zone B covers the rest of the Chelmsford borough and imposes a levy of £125 per sq m
"The viability evidence base indicates that most new residential development can sustain a CIL charge without compromising the overall economic viability of development across the Borough," the Council said.

"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," it added.

The Charging Schedule imposes a flat rate of £87 per sq m for all new non-food retail development and a flat rate of £225 per sq m for all new food retail development.

All other uses are charged at zero rate per sq m, the Council said. There are also certain exemptions under the CIL Regulations, which include affordable housing, new buildings and extensions of less than 100 sq m gross internal floorspace and charity landowners. 

CIL is a new planning charge introduced by Government which allows Local Authorities to raise funds from developers who wish to build in their areas.

The receipts would then be used to help fund a wide range of infrastructure needed as a result of new development, which could include new roads or transportation schemes, flood defences, schools, hospitals and healthcare, green spaces and leisure centres.

The consultation on the preliminary draft Charging Schedule will close on 26 April and the Council plans to publish its draft Charging Schedule by July 2012.

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