Agenda item

Haringey's Community Infrastructure Levy - Draft Charging Schedule and Updated Community Infrastructure Plan

(Report of the Director of Place and Sustainability. To be introduced by the Cabinet Member for Economic Development and Social Inclusion). The report provides an update on the progress in preparing for the introduction of Haringey’s Community Infrastructure Levy (CIL) and seeks approval for public consultation on the Draft Charging Schedule.

 

Minutes:

Cabinet considered a report, introduced by the Cabinet Member for Economic Development and Social Inclusion, which sought approval to proceed with public consultation in April-May 2013 for four weeks on the Draft Charging Schedule for Haringey’s Community Infrastructure Levy (CIL).

 

As detailed in the report the Cabinet Member for Economic Development and Social Inclusion advised that in order to ensure that the building of affordable housing remained viable the rates for the borough had been set at a level slightly below maximum threshold of viability identified in the report conducted by BNP Paribas.

 

RESOLVED:

 

  1. That it be agreed to proceed to public consultation in April-May 2013 for four weeks on the Charging Schedule for Haringey’s Community Infrastructure Levy (CIL), as set out in Appendix 1 of the report, with the Draft Schedule keeping the CIL tariff levels and boundaries, as agreed by Cabinet in July 2012, with two newly added categories into the CIL tariff; student housing and miscellaneous/all other uses.

 

  1. That the list of priority project categories (Re. 123 list) that could be partially funded by the CIL be agreed, noting that this  formed part of the Charing Schedule set out in Appendix 1 of the report.

 

  1. That it be agreed that the Community Infrastructure Plan (CIP) and the Reg 123 list be kept under review and the most up to date versions of both documents be provided before submission of the CIL Draft Charging Schedule for independent examination.

 

  1. That it be agreed that the Cabinet Member for Economic Regeneration and Social Inclusion be delegated authority to agree minor changes to the Draft Charging Schedule, if needed, before the public consultation commenced.

 

  1. That the Council’s draft response to the Preliminary Charging Schedule consultation outcomes, set out in Appendix 4 of the report,  be noted and agreed.

 

  1. That it be agreed that, subject to there being no major issues requiring changes to the charging schedule arising from the consultation, sign off by the Cabinet Member for Economic Regeneration and Social Inclusion would be sought prior to submission of the schedule and the relevant body responsible for undertaking the Examination in Public.

 

Alternative Options Considered

In order to fully assess the potential for higher revenues that CIL may bring towards the cost of essential infrastructure, we have modelled the following options for CIL charging tariff since the July 2012 consultation draft:

 

Ø  Reassess the level of CIL tariff in certain wards in the east with a view of increasing it, especially south east Tottenham.

Ø  Consider higher rates for employment land which may be subject to change to residential use

Ø  Include development types in the CIL schedule that we have not considered before. This would require an evidence base as to why these developments are not included in the CIL.

 

To assess the viability of these approaches, further evidence was sought from our consultants BNP Paribas. They confirmed that the first two options were not viable and therefore are not currently being pursued. The third option yielded two new development types, student accommodation and a miscellaneous rate which are now recommended for inclusion in the draft CIL charging schedule.

 

We also considered sliding scale CIL tariff levels against differing percentages of affordable housing; however, this option was not pursued further as it was not considered to conform to current CIL regulations.

 

Reasons for Decision

The Community Infrastructure Levy Regulations 2012 (as amended) allows councils to introduce CIL, being a charge on new buildings and extensions to help pay for supporting infrastructure. The Council intends to introduce a Community Infrastructure Levy by April 2014,  and in line with CIL regulations, it  will have to consult on the Draft Preliminary Charging Schedule for its proposed Community Infrastructure Levy. This is required to be a Cabinet decision.  

 

This report recommends that we consult on the draft CIL rates. The Draft Schedule includes information on the recommended tariff, exemptions, links between s106 and CIL and other relevant information as required by the CIL Regulations (2010 and revised 2012 regulations). 

 

This is in accordance with the Regulations and the Council is obliged to take into account consultation responses received before deciding to formally adopt the CIL Charging Schedule.

 

Supporting documents: