The PDCS (18-page / 4.58MB PDF) divides the Borough into three charging zones for residential developments. Developments in Zone 1 will be subject to a proposed CIL rate of £200 per square metre; Zone 2 has a proposed rate of £65 per sq m and Zone 3 has a proposed rate of £35 sq m. The Council said that the proposed rates were generally not more than 5% of typical new build residential sales in the Borough and that it considered that the application of CIL is "unlikely to be the overriding factor in determining whether or not a scheme is viable."
For office uses, CIL will only be charged if the developments are located in the 'City Fringe' or 'North Docklands' areas. A proposed rate of £125 will apply whilst developments elsewhere in the Borough will be subject to a zero rate levy. The Council said that developments outside the City Fringe and North Docklands were unlikely to come forward in the short to medium term as the capital values such developments would generate would be insufficient to cover development costs.
Large retail developments, measuring above 280 sq m, will be subject to a proposed borough-wide rate of £200 per sq m. Small retail developments, measuring 280 sq m or less, will be subject to a proposed rate of £100 per sq m if they are located in the City Fringe or North Docklands. A proposed zero rate levy will apply to small retail developments in the rest of the Borough. Student housing and hotel developments across the Borough will be subject to a proposed rate of £425 per sq m.
In addition to CIL charged by the Council, any developments in the Borough will also be subject to Mayoral CIL. The Mayoral CIL charge in Tower Hamlets is £35 per sq m on all uses except for health and education purposes, which are exempt from Mayoral CIL.
The Council said that if its CIL comes into effect before the London Legacy Development Corporation (LLDC) introduces CIL in the LLDC area, the Tower Hamlets CIL will apply across the part of the LLDC area which falls within Tower Hamlets until LLDC's own CIL comes into effect. The LLDC is responsible for planning policy and decisions in the Olympic Park and surrounding area and it has expressed an intention to introduce CIL.
The consultation will run from 16 November to 2 January. The Council said it expects to adopt CIL in October 2013.
