Greater Norwich councils to reduce CIL rates due to viability concerns

The Greater Norwich Development Partnership's (GNDP) produced a draft charging schedule (14-page/2.77MB PDF) for Norwich, South Norfolk and Broadland councils. The proposed CIL for residential properties in zone A was up to £160 per square metre, but this could be reduced to £115 per sq m, the Council said.

The CIL is a new way of collecting developer contributions to help fund infrastructure projects. It allows local authorities to charge a tariff, at a locally set rate, on many types of new development.

The money can then be used to pay for a wide range of additional infrastructure that is required as a result of development. This can include transport schemes, green infrastructure and community facilities. 

The responses to the consultation on GNDP's draft charging schedule, which closed in November, have led to a recommendation that the CIL be set at rates lower than those first put forward. House builders, parish councils and other interested parties said the levy would make many schemes unviable. They argued that the proposed CIL rates were too high for the current economic conditions, the GNDP said.

“We have carefully listened to the views put forward and recognise the tough economic conditions out there," said Andrew Proctor, chairman of the GNDP. "Our response is to reduce the charges so that they are more equitable for developers while still helping deliver the building blocks and infrastructure associated with growth on this scale.”

A meeting of the GNDP board today is being asked to recommend to the three constituent authorities that the levy is set at £115 per sq m for properties in Norwich and parts of Broadland and South Norfolk closest to the city (Zone A). The proposed rate of £75 per sq m for residential development in the rural parts of Broadland and South Norfolk (Zone B) would not be changed, the GNDP said.

The original CIL rates proposed a levy of up to £160 for residential development in Zone A, which would mean developers would have had to contribute about £15,000 per property. Under the new proposal of £115 per sq m, this falls to about £11,000 per property. The CIL for residential development in zone B would remain unchanged, meaning a contribution from developers of about £7,500 per property, according to the GNDP.

"Without key infrastructure we can not hope to create the thriving communities which people want to live in and this levy will go a long way to achieving that vision. It gives local authorities extra resources to invest in these facilities and also gives developers greater certainty and clarity about their role and contribution," said Proctor. “But after talking and listening to them, we appreciate that they are facing challenging conditions at present, hence the reduction we are now proposing.”

The Greater Norwich Development Partnership (GNDP) made up of Norwich, South Norfolk and Broadland councils is planning a Joint Core Strategy that proposes the building of 37,000 homes and the creation of 27,000 new jobs.