Croydon Council is set to revise its Community Infrastructure Levy (CIL) charging schedule, aiming to generate increased revenue for infrastructure development across the borough. The proposed changes, which have received approval from the Council's Cabinet and are recommended for adoption by Full Council, will update rates and introduce CIL charges for new development types.
The current CIL charging schedule, based on 2011 viability assessments, has been in place since 2013 and is considered outdated. The revised schedule, supported by an independent examiner's report, aims to reflect current economic conditions and better support growth outlined in the Croydon Local Plan.
Key changes include the introduction of CIL charges for residential developments in the Croydon Metropolitan Centre, which previously had no CIL rate. The revised schedule also proposes an increase in residential rates elsewhere in the borough and the inclusion of various development types previously not subject to CIL. These include business development in the rest of the borough, and a new chargeable category for development comprising community, sport and leisure facilities by a publicly funded or 'not for profit' organisation, which will have a nil charge.
While a definitive projected figure for the overall increased revenue is not provided, a theoretical example for the Ruskin Square development estimates between £9 million and £13 million in CIL funding for the residential portion under the revised schedule. The meeting information states that the revised CIL Charging Schedule is considered to strike an appropriate balance between funding infrastructure and development viability, and would not undermine the deliverability of the Croydon Local Plan.
An independent examiner's report concluded that the proposed rates strike an appropriate balance between funding infrastructure and development viability, and would not undermine the deliverability of the Croydon Local Plan. However, two modifications were recommended and accepted by the Council: a reduction in the CIL rate for industrial and warehousing development in the Rest of the Borough zone from £50 to £35 per square metre, and the introduction of a nil rate for community, sport, and leisure facilities developed by publicly funded or not-for-profit organisations.
The revised schedule is expected to generate increased CIL income, which will be invested in infrastructure projects across the borough. The allocation of this income will be determined annually through the Council's budget-setting process.
The Council has also noted measures for implementing the schedule, including exceptional circumstances relief and infrastructure in kind approaches, which can be engaged when justified.
