Croydon's draft CIL Charging Schedule submitted for examination

The Borough's draft Charging Schedule proposes differential rates for most new developments dependent on whether the development falls within the 'Croydon Metropolitan Centre' or outside of that zone, but within the borough.

As part of the 'examination in public' the examiner will schedule a series of hearings focusing on key issues. The hearings are likely to commence on 24 September 2012.

The 'examination in public' is due to take place in the week commencing the 24 September and the Council hopes to implements its proposed Charging Schedule from 1 April 2013.

Croydon's draft Charging Schedule proposes a zero rate for new residential development and institutions located within the 'Croydon Metropolitan Centre' zone. However business development and all other development located within that zone would be charged at £120 per square metre.

For all other areas within the Borough outside the 'Croydon Metropolitan Centre', the Council proposes to levy a charge of £120 per sqm for residential development and institutions. However business development and all other development within that area would be charged a zero rate.

If approved, Croydon's proposed CIL would be charged in addition to the Mayor's CIL, which was implemented in April 2012. The Mayoral CIL is aimed at raising funds to help pay for Crossrail and the Borough's CIL would be charged to raise funds for new infrastructure and facilities in the Borough.

"CIL will be chargeable on the net additional floorspace of all new development apart from that exempt under the Community Infrastructure Levy Regulations," the Council said in its draft Charging Schedule. 

The Council wants to ensure that additional funding for necessary infrastructure can be provided without generally slowing development, it said. The CIL draft charging schedule was submitted to the examiner for examination on 18 June.

The independent examiner will consider the representations made and a number of legal requirements and whether the CIL draft Charging Schedule has been prepared having regard to the actual and expected costs of infrastructure in Croydon, other sources of funding of infrastructure and the economic viability of development.

During the examination the Council's evidence base that was used to set the CIL, rates will be assessed and a number of examination hearings will take place to conclude whether the CIL draft charging schedule is appropriate for adoption.

The examiner will publish a report of his conclusions on whether the Charging Schedule is approved. The report may include a number of recommendations, the Council said.

Last November London First objected to Croydon's CIL viability assessment on the grounds that it incorrectly uses development sites' "current use value" rather than the "market value" in its calculations of the levy.

In a letter to Croydon's spatial planning team, London First has said that the Council's methodology of using "current use value" in the viability assessments, rather than "market value", is inconsistent with guidance and is "not appropriate".