Out-Law / Your Daily Need-To-Know

Developers of residential developments within Hertsmere Borough Council's administrative area will be liable for one of three different community infrastructure levy (CIL) rates depending on location, under proposals in the Council's preliminary draft charging schedule (14-page / 2.37MB PDF (PDCS).

The Council has proposed in the PDCS, which it published for consultation earlier this month, that the Borough is divided into three different charging zones for residential developments.

Zone 1 will cover Borehamwood, Potters Bar and Elmstree and is proposed to be subject to a CIL rate of £120 per square metre. The proposed rate for Zone 2, which will cover Radlett and Bushey, is £210 per sq m and the proposed rate for Zone 3, covering the Elstree Way Corridor, is £60 per sq m. For care homes, a Borough-wide rate of £163 is proposed.

Retail developments are proposed to be subject to a Borough-wide rate of £84 per sq m. For hotel developments the proposed rate is £145 per sq m. A zero rate levy is proposed for office and industrial developments.

The Council's viability assessment had shown that only St Albans could support a CIL rate whilst remaining viable and had therefore recommended a zero rate levy. The assessment had shown that industrial development could support a rate of £20 per sq m, but had recommended to "err on the side of caution" as it said small variables could impact on the CIL rates to make it unviable.

The consultation will be open until 3 April. The Council said it expects to adopt CIL early next year. 

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