Purpose

This report has been prepared
to progress the Council’s review of the charges levied
through the Borough’s Community Infrastructure Levy (CIL),
which was adopted in 2013. Following consultation and agreement
with the Executive Mayor, the Cabinet Member for Planning and
Regeneration and subsequent reporting of this decision to Cabinet
in March 2024, this report seeks agreement from the Corporate
Director of Sustainable Communities, Regeneration & Economic
Recovery to:  
 
Approve the publication of the
Council’s Community Infrastructure Levy (CIL) draft Charging
Schedule and consultation exercise, to include the draft Charging
Schedule, consultant’s review assessment and any other
relevant documents, in accordance with The Community Infrastructure
Levy Regulations 2010 as amended in
2019.   
 
CIL is a charge which can be
levied by local authorities on development in their area and is a
tool for local authorities to help fund the infrastructure needed
to support development. 
 
The proposed charges have
increased to reflect changes to land values in Croydon and to take
into account the need for additional infrastructure and community
facilities across the borough to support our growing population.
The CIL rates vary depending on the type of development involved
and where the development will take place. The draft CIL Charging
Schedule provided at Appendix 9.1 sets out the proposed new rates
required for different types of development and where exemptions
apply. 
 
CIL revenue currently supports
the delivery of the Mayor’s Business Plan 2022-26, Croydon
Local Plan and CIL revenue contributes towards the Council’s
Capital Programme. It is estimated that the updated CIL rates could
yield almost £34 million in planned growth up to 2040 in the
Croydon Metropolitan Centre, with other less significant gains
across other uses across the borough. 
 
A review of the CIL Charging
Schedule is timely as the Borough’s extant CIL charging rates
were adopted in 2013. As this is a specialist piece of analysis,
the Council has instructed consultants BNP Paribas to undertake a
viability assessment to test alternative rates, CIL liable uses and
CIL Charging zones, make recommendations and prepare an updated
draft CIL Charging Schedule. It is a statutory requirement to
consult on a draft Charging Schedule and supporting documents. This
is recommended to be for a 6-week period, prior to the examination
of the draft CIL Charging Schedule by an appointed Examiner. The
proposed statutory consultation will commence in Spring
2025.  
 

Content

For the reasons set out in the
report and its appendices, the Corporate Director of Sustainable
Communities, Regeneration & Economic Recovery,
AGREED: 
 
A statutory consultation on the
Borough’s Charging Schedule (appendix 1) under
Regulation 16 of the Community Infrastructure Levy Regulations 2010
as amended in 2019, to include the draft Charging Schedule,
consultant’s review assessment evidence (appendix 2)
and supported by any other relevant documents (see background
documents).