Issue - meetings

[Report of the Director of Regeneration, Planning and Development. To be introduced by the Cabinet Member for Climate Change and Sustainability.]

The report seeks Cabinet's approval to publish the Draft Charging Schedule and associated evidence base documents for public consultation; and seeks that the Director for Housing, Regeneration and Planning is given delegated authority to finalise and approve the proposed Submission documents,  and submit the Draft Charging Schedule for examination.

The Cabinet Member for Climate Change and Sustainability introduced this report which sought Cabinet’s approval to publish the Draft Charging Schedule and associated evidence base documents for public consultation; and sought that the Director for Housing, Regeneration and Planning be given delegated authority to finalise and approve the proposed Submission documents, and submit the Draft Charging Schedule for examination.

The Cabinet Member informed the Community Infrastructure Levy (CIL) was a charge based on the floor space of new buildings to help fund infrastructure needs arising from new development. CIL can generally be spent in any part of the borough. CIL rates were calculated based on financial viability of development. As financial values of development were different across Haringey CIL rates vary geographically to reflect this. Financial values were also why affordable housing had a big impact on CIL rates. While a private home and a social rented home cost broadly the same amount for a developer to build, a developer can sell a private home for a greater price than a social rent home. This meant that the more affordable housing the Council seeks and the more affordable the tenures are for residents, the lower the financial value of development to a developer and the less money that is available to contribute towards CIL.

The Cabinet Member highlighted that the report proposed to increase CIL rates levied by the Council in the east of the borough for residential development, build to rent and student accommodation. It also proposed to introduce a new rate for warehouse living. Until now, the CIL rate for residential development in the east of the borough had been extremely low at £15 per square metre. This report proposed increasing it to £50. In setting CIL rates the Council was required by national guidance to strike a balance between investment to support development and the potential effect on the financial viability of developments. A comprehensive review had been carried out to decide how much to increase CIL rates in the east of the borough. The proposed rates maximise financial contributions from development towards infrastructure whilst ensuring the economic viability of development and protecting the Council’s ability to secure its preferred affordable housing tenures as part of new development.

The Cabinet Member closed by noting the proposed rates were set out in a Draft Charging Schedule for consultation. They were subject to approval by an independent examiner.

In response to a question from Cllr Emery, the Cabinet Member noted that the three strategic development sites already in existence at Tottenham Hale were not affected by the higher CIL rate because the rate increase was not being applied retrospectively. Only new developments would be affected by the revised CIL rates as set out in the Draft Charging Schedule.

RESOLVED

1.            To note that following the clarifications set out in Section 8, the proposals were endorsed by Regulatory Committee for approval by Cabinet without any changes for consideration

2.            To note the update on the Haringey CIL.

3.            To note  ...  view the full minutes text for item 79