Islington consults on Community Infrastructure Levy charges

The Borough has proposed one charging zone with single levies for most development, except for office development, for which it has proposed two charging zones with differential rates.

The preliminary Draft Charging Schedule includes rates from between £300 per square metre, for residential development across the whole borough, to a nil rate per sq m, for office development that is located in zone B.

Office development that is located in zone A, in the south of the Borough, attracts a proposed charge of £150 per sq m. The variation in the rates reflects the variation in viability across the borough, the Council said.

"The council is proposing variable rates by area for offices reflecting the significant variation in office viability across the borough," it said. "Offices attract higher values in the south of the borough which is closer to the City of London, compared with elsewhere. The charging zone boundary is based on the Central Activity Zone boundary which identifies the part of London considered to be its geographic, economic and administrative core."

The proposed rate for residential development has been set at a higher rate than levies for other forms of development. The Borough's viability study found that the "majority of likely development scenarios would be viable and that significant affordable housing contributions (or higher infrastructure charges) could be supported".

However, the Borough also said that on average only 45% of residential development would be liable for the charge. This is because the Borough is densely developed and so a "significant proportion" of new residential development would be "replacement floorspace", which is not liable for CIL.

"This together with the affordable housing exemption will mean that CIL will not apply to a significant proportion of new residential floorspace in the borough," the Council said.

Over the last five years 8,159 new homes have been build in Islington, which far exceeded the London plan target of 4,960 homes, the Council said.

For student accommodation, apart-hotels and hotels, the Borough has proposed a levy of £450 per sq m. Retail development is proposed to be charged at a flat rate across the Borough of £200 per sq m.

"The Council is proposing CIL charging rates that are aligned to the relative viability of different uses with higher rates for high value uses (student accommodation, hotels, residential, retail), lower rates for lower value uses (assembly and leisure and sui generis) and nil rates for uses which are much less viable (industrial/ storage/ distribution and community uses)," it said.

The consultation on the Preliminary Draft Charging Schedule will run until 20 August.