Examiner approves Richmond CIL charging schedule

Out-Law News | 14 Apr 2014 | 2:30 pm | 1 min. read

An examiner has recommended that the London Borough of Richmond upon Thames' community infrastructure levy (CIL) charging schedule be adopted (13-page / 90KB PDF) subject to modifications.

The examiner issued his report on the draft charging schedule (DCS) last month following an examination by written representations.

The council had proposed to create two residential zones, with a 'higher band' rate of £250 per square metre to apply in the northern parts of the borough and a 'lower band' rate of £190 per sq m to apply in the southern parts.

The examiner said in his report that the levy rates for residential development were justified by "appropriate available evidence". He said that they struck "an appropriate balance between helping to fund new infrastructure and its effect on the economic viability of new housing across the borough".

For convenience retail developments, the council had proposed a borough-wide rate of £150 per sq m. The same draft rate would apply to comparison retail developments in Richmond town centre according to the DCS. For all other uses, the council had proposed a 'standard charge' of £25 per sq m.

The examiner said that the £25 per sq m standard charge did not meet drafting requirements because it was proposed to apply to a number of uses which had not been viability tested.

He recommended that a rate of £25 per sq m should be specified as applying to care homes and hotels in the higher band area and to offices in Richmond town centre. The standard charge should be reduced to a nil rate levy, he said.

The council said in a statement that it will now present the charging schedule for adoption by its cabinet and at a full council meeting. It said it anticipates that CIL will come into effect in the borough on 1 September 2014.