New development levy to help improve town’s infrastructure

News
08/08/2018

Developers looking to build in Tamworth will be asked to contribute towards projects which benefit the whole town, as part of a new infrastructure levy adopted by Tamworth Borough Council.


From August 1, certain planning permissions granted in Tamworth will be subject to the new Community Infrastructure Levy (CIL), which will generate a pot of money to be spent on improving the town’s infrastructure as a whole.


A list of projects that could be funded wholly or partly by the new CIL has been identified, consisting of schemes or works that are not already being provided for through other channels. These include the refurbishment of the Castle Grounds play area, a new multi-purpose community leisure centre, a new skate park, improvements to existing sports facilities and play areas and new footpaths and cycleways.


Tamworth Borough Councillors approved plans to adopt the Community Infrastructure Levy, which requires developers to contribute towards the fund which can then be allocated to a variety of infrastructure projects across the town.


CIL differs from the more specific Section 106 agreements - which are used to make particular developments acceptable in planning terms - and is designed to ensure the town’s wider infrastructure keeps pace with the overall rate of growth.


Section 106 agreements will still be used in certain circumstances where required, such as for affordable housing and any site specific mitigation measures, but only where it wouldn’t lead to developers paying for the same infrastructure through both routes.


The Community Infrastructure Levy can be used to support projects such as roads and transport, flood defences, open spaces, medical facilities, sporting and recreational facilities and ‘green’ infrastructure.


The current list of projects identified has been taken from the recently updated Infrastructure Delivery Plan which sets out the infrastructure required to support the development of Tamworth.


Referred to as the ‘Regulation 123 list’, it can be viewed in full via www.tamworth.gov.uk/cil and will be updated on a regular basis.


Not all development is liable for CIL, such as small scale builds of less than 100 square metres, and exemptions are available for developments such as self-build, social housing and charitable development.


Rates payable will depend on the size and nature of a development and are calculated in pounds per square metre of the gross internal floor space created. For residential dwellings, for example, the rate for three to 10 units will be £68 per square metre, and for schemes of 11 or more units, it will be £35 per square metre. Schemes of less than three dwellings, and other types of residential development such as retirement and care homes, won’t pay anything on the basis that it would likely make them unviable.


Retail development in the town, local and neighbourhood centres also have a £0 rate for reasons of viability, while for other retail developments, the rate payable will be £200 per square metre.


Rates have been set based on viability evidence provided by specialist consultants as part of the in-depth CIL consultation process.


There is also a process to offer relief from the charge in exceptional circumstances where CIL could make a development unviable, such as where there are significant abnormal additional costs associated with a particular development.


The adoption of the Community Infrastructure Levy was approved at a meeting of the Full Council on July 17 and will be implemented on August 1. It will therefore apply to eligible proposals which are granted planning permission after this date.


The CIL scheme is supported by a new Planning Obligations Supplementary Planning Document (SPD) which sets out how it will work alongside other types of planning obligation. The new SPD supersedes two existing documents - Planning Obligations July 2007 and Open Space for new Residential Development July 2007 – which will both be revoked on August 1.


Cllr Steve Claymore, Tamworth Borough Council’s Cabinet member for Heritage and Growth, said:

“When new building projects are proposed for Tamworth, measures are often required to mitigate the wider impact of these works.

“This could be providing things like new school places, an access road, a play area and so on. Previously, this money has been collected through Section 106 agreements, and while this will still be used in certain circumstances, the new Community Infrastructure Levy means money is not tied to a particular development or infrastructure project.

“As well as providing greater certainty up front to a developer about the costs associated with a development, it means we can be more flexible about how money is spent and it should help us deliver the appropriate infrastructure at the right time to support the growth of the town.

“There are various exemptions and eligibility criteria to ensure the charge does not affect the viability of a particular development and CIL is only applied where a development would still be considered viable.

“The bottom line though is that Tamworth is growing and it is vital that this growth is supported by the necessary level of infrastructure and services across the town as a whole.”


Contact Linda Ram on 01827 709571, mobile 07791 782802, or email Linda-ram@tamworth.gov.uk or Michelle Eldred on 01827 709572, or email Michelle-Eldred@tamworth.gov.uk.

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