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Wandsworth considers zero CIL for office schemes to ensure viability


The London Borough of Wandsworth may reduce the Community Infrastructure Levy (CIL) rate it charges for new office and retail development, following concerns that the levy could make office developments unviable.

Its draft CIL charge for new office and retail development was provisionally set a £100 per square metre across most of the borough. However, following a consultation in July Wandsworth is now considering changing the rate to zero.

Wandsworth Borough Council is "looking to change the commercial and retail rate to a zero" across the borough, said Nick Cuff, the chair of the Council's planning committee, Planning Resource reported.

"I don't think that Wandsworth is a borough that is going to see office-led development going forward. What you will see is developers coming forward and renewing their existing office space," said Cuff. "Potentially, having a CIL charge on that net additional floorspace will remove any upside that developers will have."

Under the CIL Regulations 2010, Wandsworth must show that to achieve the level of growth set out in its Local Development Framework, new or improved infrastructure is necessary. The Regulations also state that it must develop CIL rates in its charging schedule that do not make new development unviable.

Wandsworth Borough Council's draft charging schedule published in June proposed a rate of £100 per square metre to be levied on all new office and retail developments, except for those within the ‘Roehampton Exemption Area’, where no levy was proposed for any new developments.

"We are considering a reduced charge for retail and offices in our existing town centres. We've commissioned a report examining viability in relation to these developments, which will help inform our final decisions," said a spokesman for the council, according to Planning Resource.

Any changes that Wandsworth Borough Council intends to make to its proposed CIL charging schedule will be set out in a 'Statement of Modifications' which would be made available four weeks prior to the examination of the Charging Schedule by an independent Planning Inspector, the Council said.

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