Community Infrastructure Levy

The Community Infrastructure Levy (CIL) is a tax that councils are starting to charge on new developments in their area. The money raised is used to fund a ‘Project Bank’ which will pay for additional infrastructure that local community and neighbourhoods want but that the council can’t afford. On large developments it will replace the current Section 106 agreement but it will now be introduced on all new development including new single houses and basements and house extensions over 100sq metres in area. Once the rates have been agreed they are non-negotiable.

Southwark is currently consulting on the proposed rates for Southwark’s CIL and has prepared a ‘Preliminary Draft Charging Schedule’. The suggested rates for residential development range from £400sqm on the riverside to £50sqm in central Southwark. Rates for offices range from £100sqm on the riverside to £0 elsewhere in the borough. Retails ranges from £0-£250 but education, health, industrial, and public funded sports/community facilities will be exempt.

The current consultation closed during October but there will be further consultation in January 2013.

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