Tower Hamlets Council is considering implementing a new levy on Research & Development (R&D) projects in the borough, aiming to boost infrastructure funding. The council estimates that the proposed £117 per square meter R&D levy could generate approximately £24.36 million in additional infrastructure funding over the Local Plan period, assuming employment demand supports full delivery of 208,200 sqm of new floorspace.
The proposal was discussed at a Cabinet meeting on Wednesday, 17 December 2025.
The proposed Community Infrastructure Levy (CIL) would introduce a rate of £117 per square metre for R&D developments. The council adopted the current schedule in April 2015, with a revision in 2020. According to the Public reports pack, a viability assessment commissioned in 2024 found that this rate is viable and would align with the adopted Local Plan.
The 2024 viability assessment, detailed in the LBTH Research & Development CIL Study (Appendix. 2 for The draft CIL Partial Review Draft Charging Schedule - Consultation.pdf), found that:
- Potential maximum CIL rates for R&D developments vary widely based on building height and benchmark land value.
- Taller buildings, the most typical form of R&D development, can generally support CIL rates in the mid-range of £100–£150 per square metre.
- Setting the CIL rate for R&D developments at approximately £117 per square metre aligns with the adopted indexed office rate, which is a logical approach as developers often consider R&D and office spaces interchangeable.
- A uniform CIL rate across the entire borough is justified, as there is no evidence of differing rent levels elsewhere in the Borough.
According to the The draft CIL Partial Review Draft Charging Schedule - Consultation, the council is seeing a rise in planning applications for R&D uses, particularly within the life sciences sector. These developments are emerging as a viable alternative to traditional office space in specific areas of the borough.
The proposal aims to ensure that R&D developments contribute fairly to infrastructure improvements. Currently, R&D uses fall under the 'All Other Uses' category in the Council's 2020 CIL Charging Schedule, which carries a nil rate. The new levy seeks to address this discrepancy.
The cabinet is expected to approve a public consultation on the proposed revisions to the CIL Charging Schedule. The public consultation is scheduled for six weeks, commencing in early January 2026. Feedback will be gathered through various channels, including an online platform, hard copies at public locations, and notified to statutory consultees, developers and community groups. All representations received will be published and considered prior to submission for examination. The Agenda frontsheet for the meeting indicates that there is delegated authority to progress from consultation to submission for examination without returning to Cabinet if no material modifications are necessary. However, the proposals will be reviewed and endorsed by the Corporate Director for Housing and Regeneration and the Mayor prior to submission to ensure transparency and oversight.
According to the Public reports pack, the council has ensured that the proposal for the new rate is informed by appropriate evidence, is viable, and aligns with the adopted Local Plan.
