Agenda item

[Report of the Assistant Director for Planning. To be introduced by the Cabinet Member for Housing, Regeneration and  Planning.] Cabinet will be asked to approve the Preliminary Draft Charging Schedule for consultation, the draft Regulation 123 list and the governance arrangements for the spending of CIL funds before approval of the Draft Charging Schedule following consultation later in the year.

 The Cabinet Member for Housing, Regeneration and Planning introduced the report which set out: the findings of viability evidence and supported an increase in CIL rates in certain parts of the borough, namely Seven Sisters, St. Ann’s, West Green, Bruce Grove, Tottenham Green, and Tottenham Hale wards, a proposed partial review of the CIL Charging Schedule to update Council’s Regulation 123 List – [the list of infrastructure that the Council intends to spend CIL on] and proposals on how to manage CIL expenditure.

The Cabinet Member advised that the Planning service had started work on review of CIL rates in 2013 and at this time there was no evidence, in values, that more than £15 per square metre could be levied to developments in the Tottenham area. However, in part, because of work on AAP in Tottenham, land values had increased and development in this area had become more valuable, meaning the Council could secure benefits for residents in the charging process of the CIL. In South East Tottenham this would mean increasing the charge to developers from £15 per square foot to £130 per square foot and reflected Tottenham’s reputation change in the land market. The Cabinet Member referred to Table 4 which set out some initial modelling undertaken on existing site allocations, on which planning applications were anticipated in the period 2018-2026, which showed that with an increase in the CIL rate, if approved, following consultation, this could provide the Council with a potential £19m to spend on vital infrastructure projects such as school, parks, roads and health centres.

Councillor Doron advised that Regulatory Committee approved of the proposed new CIL rate for consultation. The Committee welcomed more money for infrastructure in the borough but were surprised at low CIL values included for North Tottenham. There had been discussion on CIL expenditure being restricted to infrastructure projects that drive growth and it was suggested there be a process for non Cabinet members to make recommendations for CIL expenditure. The cycling champion suggested consulting with local groups as they can also suggest ideas relating to transport infrastructure projects.

The Cabinet Member responded to the comments of Regulatory Committee and advised that the CIL rate for North Tottenham had been assessed by an independent advisor and outlined that there was still progress to be made on ensuring stakeholders such as Housing Associations see North Tottenham as an investment area. The Council would continue to monitor planning and development activity in North Tottenham, regularly, to capture benefits from regeneration for residents.

The Cabinet Member advised that Ward members could influence the local funding but he recognised this only involved a minority of the funding, 15 to 20 %, and if their ward was in the plan area. Non Cabinet members could help shape the priorities and, during the consultation on the CIL, would be able to put forward ideas.

Councillor Strickland further agreed to speak with Councillor Mallett on opportunities for local engagement.

In response to a question from Councillor Newton, the 5% allocation of CIL receipts to admin costs was set by statute so all Councils were required to allocate this percentage of income, from the CIL, to fund administration and monitoring of the governance processes.

Spend on CIL was included in the Annual Monitoring report which is considered by both Regulatory Committee and Cabinet.

RESOLVED

1. To approve publication of the revised CIL Charging Schedule (the Preliminary Draft Charging Schedule) and Regulation 123 List as set out at Appendix A for public consultation, in accordance with the CIL Regulations.

2. To approve publication of the proposal for the governance of CIL expenditure (as detailed in paragraphs 6.22 – 6.43) for public consultation.

Reasons for decision

Amending the CIL charging schedule will increase the scope of CIL receipts from new development to fund strategic infrastructure improvements in the borough.

Governance arrangements are required to ensure CIL expenditure is appropriately managed and the processes for allocating both the strategic and neighbourhood proportions of CIL are made clear.

Alternative options considered

The Council has been charging CIL on qualifying developments since 1^st November 2014. This includes a significant differential in rates between the west and centre of the borough (£265/m² & £165/m²), and the east of the borough (£15/m²). An alternative is to do nothing, and keep the rates as they are, however, evidence suggests that the majority of the eastern area can support a higher CIL rate. It is considered appropriate that a higher CIL rate is proposed for this area, to create additional funding for strategic infrastructure in the borough to support the growth planned.

In respect of the governance of CIL expenditure, there are a range of options for how the neighbourhood proportion of CIL could be allocated. These options were explored in the ‘Scrutiny in a Day’ exercise that was undertaken by Overview & Scrutiny that resulted recommendations to advance the proposal put forward in this report.

With regard to the strategic proportion of CIL, the only reasonable alternative was to have a bidding process for the use of CIL monies. However, this option was dismissed in favour of using established processes.