Out-Law News 2 min. read
18 Jun 2012, 5:27 pm
Both local authorities propose to charge the same levy across the whole of their respective boroughs, which includes £93 per square metre for all residential open market housing and £100 per square metre for all retail development over 280 square metres.
The Preliminary Draft Charging Schedules also contain proposals to allow two categories of housing a substantial discount, to ensure that it is not made unviable. Consultation on the document is open until 27 July 2012.
It is proposed that housing for essential rural workers' dwellings would be levied at a 50% discount on the levy imposed in residential open market housing and dwellings that have a 'holiday use' restriction on them will be levied at 30% less than market housing.
The levy imposes a tariff payment on most new development and is considered by the Government to be a "fairer and more transparent system of collecting infrastructure payments from developers", the Councils said.
This is the first of two public consultation exercises which will lead to a public examination of the document which will be conducted by an independent examiner prior to the proposed implementation of CIL in Autumn 2013.
The West Dorset, Weymouth & Portland Local Plan will provide the development strategy for both local authority areas to 2031. The plan considers how to meet future housing, employment and leisure needs. Although it is a joint plan, each council will still have sole responsibility for planning decisions in its area. The Local Plan is scheduled for adoption by September 2013.
The Council's viability studies found that, in current market conditions, all non-residential development except larger retail schemes are not sufficiently viable to pay CIL. It also found that residential development can withstand a CIL rate of £93 per sq m in the weakest market areas and also make a separate contribution towards affordable housing.
It is acknowledged that rural workers’ dwellings can have an important role in meeting the needs of some rural enterprises but it is also the case that residents in these homes require the same community services and infrastructure as the population at large, according to the viability study. "The suggested CIL discount of 50% attempts to strike the right balance between these two objectives," the Council said.
The viability study did suggest that higher rates could be charged in higher value areas, however "practical experience of the impact of differential rates on development viability indicates that this creates viability issues", the Council said.
"The proposed levy in both council areas is set at a uniform rate based on viability evidence and on what developers can afford to pay now," it added. "The charging schedules can be reviewed regularly following the adoption of CIL and changing economic conditions can be reflected in future schedules."
