Examiner backs Poole CIL but recommends dropping retail levy

The Examiner's report found that the Borough's CIL Charging Schedule provided "an appropriate basis for the collection of the levy", subject to the removal of the Borough's proposed levy for superstores. 

The Draft Charging Schedule had proposed a levy of £200 per square metre for superstores over 3,000 square metres, but the Examiner's report said (9-Pages / 170 KB PDF) that, in order for the schedule to meet statutory requirements and be approved, the Borough must "delete [the] CIL rate of £200 per sq m for superstores".

The Borough's viability assessment found that in current market conditions, most retail development would not be able to support CIL at any level. Further viability testing corroborated this and found that "large retail developments on town centre sites are not capable of supporting a CIL charge".

However, the evidence also found that "a large retail development of 3,000 square metres, on a site of low-grade industrial land, could support a CIL rate of £211" per sq m. 

"The Council’s proposed £200 per sq m CIL rate flows directly from this evidence," the Examiner said.  "There is nothing in the CIL regulations to prevent differential rates for retail development of different scales. However guidance states that where a charging authority is proposing to set differential rates, it may want to undertake more fine-grained sampling to identify a few data points in estimating the zonal boundaries or 'different categories of intended use'," the Examiner said.  

"In this case the viability assessment has identified a marked difference between the capability of a small retail development and that of a large retail superstore built on low-grade industrial land to support a CIL charge," he said. "However based on just two examples, with additional testing showing a complex picture, the Council accepts that there is insufficient fine grained evidence to support the use of the proposed threshold to differentiate between the different scales of retail use." 

"With clear evidence that the majority of retail development cannot sustain a CIL charge, this leaves no alternative but to set a nil rate of CIL for all retail development. I therefore recommend that the schedule is modified to delete the retail charge," the examiner said. 

Any changes sought by an Examiner are ‘recommendations’ because there is no statutory requirement for a local planning authority to adopt a development plan document. However, if a local planning authority does choose to proceed to adoption, then the Examiner’s recommendations will be binding.

This means that if Poole does decide to proceed to implement its proposed Draft Charging Schedule, it must take account of the Examiner's recommendation to delete the CIL rate of £200 per sq m for superstores.

The Borough's proposed residential rates were all found to be appropriate by the Examiner and his report noted that "particular care" had been taken to ensure that CIL rates would not put at risk development in the regeneration areas, the major local centres and the main transport corridors which together will accommodate 83% of the new housing planned to 2026. 

The Examiner also agreed with the Borough's proposed nil rate levy for new commercial development and said "until market conditions improve to increase rents and make new commercial development viable there is no merit in setting CIL and the nil rate is justified".

Mitigation for the impact of development on Habitats Regulations fall outside the remit of a CIL examination, the Examiner said. However, the issue was the subject of a short discussion at the examination hearing "for completeness" because it is a significant issue for Poole and neighbouring authorities, the Examiner said.

The Council hopes to progress the adoption of CIL, which is planned to take effect in early 2013.