The Council has proposed four separate charging zones across the Borough, which each attract differential rates dependent on the use class of the proposed development.
The Preliminary Draft CIL Charging Schedule proposed a rate of between £400 per square metre and £50 per sq m for all residential and student housing development.
"Given the experience of differential CIL for retail being tricky to convince examiners on elsewhere, e.g. at Poole, it will be interesting to see how the differential retail rate at Southwark progresses," said Richard Ford, a planning expert at Pinsent Masons, the law firm behind Out-Law.com.
The highest levy is proposed for residential development along the river, which would be charged at £400 per sq m. The highest zones and in the south of the Borough are for residential development, which is proposed to be charged at £250 per sq m. A band across the centre of the Borough would attract a levy of £50 per sq m under the proposals.
The Council's cabinet will consider the levy at a meeting next week and will be asked to approve the Preliminary Draft Charging Schedule for consultation.
All retail development across the Borough would be charged at different rates depending on the size of the proposed developments.
For retail developments of between 280 sq m and 2,499 sq m the Charging Schedule proposes a charge of £125 per sq m and for retail developments of 2,500 sq m and above, the proposed levy would be £250 per sq m.
If a retail development is less than 280 sq m there is no charge under the Draft Charging Schedule.
Office and industrial developments and hotels attract the highest levy in the western edge of the Borough along the river. In zone 1 hotel development is proposed to be charged at £250 per sq m and office and industrial development is proposed to be charged at £100 per sq m.
There is a nil rate levy proposed for many developments in the Borough.
The Council hopes to consult on its Draft Charging Schedule in December 2012 and to bring CIL into effect in 2013.
