Purpose

This report has been prepared
to progress the Council’s review of the Borough’s
Community Infrastructure Levy (CIL) which was adopted in 2013. This
report aims to provide an overview of the statutory consultation
outcomes including highlighting the key issues raised and the
Council’s response which is intended to be submitted along
with the proposed draft charging schedule and evidence documents
for independent examination.
 
Following consultation with the
Executive Mayor and Cabinet Member for Planning and Regeneration,
this report has been prepared and seeks agreement to
approve:
 

The submission of the
CIL Draft Charging Schedule (Appendix 8.1) and supporting documents
(Appendix 8.2 (a-g)) for independent examination in accordance with
Regulation 19 of the Community Infrastructure Levy Regulations 2010
(as amended).

 

Content

For the reasons set out in the
report and its appendices, the Executive Mayor, AGREED to
approve:
 
The submission of the CIL Draft
Charging Schedule (Appendix 8.1) and supporting documents (Appendix
8.2 (a-g)) for independent examination in accordance with
Regulation 19 of the Community Infrastructure
Levy Regulations 2010 (as amended).
 

Reasons for the decision

It is a statutory requirement
for the charging authority (the Council) to submit the Draft
Charging Schedule, relevant evidence and supporting information to
an independent Examiner for examination as set out in the CIL
Regulations 2010 (as amended).
 
Further to 3.1, it is
considered that:
a)   
the Council has complied with the legislative
requirements set out in the Planning Act 2008 and the Community
Infrastructure Levy Regulations 2010 (as amended);
b)   
the Draft Charging Schedule is supported by
background documents containing appropriate available
evidence;
c)   
the Council has undertaken an appropriate level of
consultation;
d)   
the proposed charging rates are informed by, and
consistent with, the evidence on viability across the borough of
Croydon; and
e)   
the proposed charging rates would not undermine the
deliverability of the adopted Croydon Local Plan 2018 and its
partial review.
 
Reasons for recommendations are
further explained in the proceeding sections of this
report.
 

Alternative options considered

Proceed to
examination based on the Draft Charging Schedule and supporting
evidence documents published for statutory consultation:
BNPPRE have advised that there are no major issues
arising from the consultation that would require the Council to
significantly modify the proposed Draft Charging Schedule prior to
examination. This is the preferred option.
 
Revisit the project after
the partially reviewed Local Plan is adopted and reassess viability
to reflect the market conditions at time of
recommencement:It
is noted that the Croydon Local Plan partial review examination is
currently underway. The inspector could recommend modifications to
the plan that could have an implication on the CIL charging
schedule. The Viability Study considered the draft policies in the
Local Plan partial review, however any change arising from the
examination would not have a significant impact to the outcomes of
the overall viability assessment. Therefore, the examination of the
Local Plan partial review and CIL Draft Charging Schedule can
proceed in parallel to each other. Any delays to the
CIL Charging Schedule examination would have a significant impact
on CIL income and pose a risk to the delivery of infrastructure
needed across the borough to support new developments, which is not
supported. Additionally, any extended delays could require further
viability assessment resulting in additional costs, time and
resources for the Council.
 
Recommend that large scale
residential development sites in the CMC be nil rated in the CIL
Draft Charging Schedule: Although the CIL
rate in the Croydon Metropolitan Centre (CMC) is currently nil, the
Viability Study (BNPPRE, 2024) confirmed that this area has also
seen the steepest increase in residential values in the Borough
which has consequently narrowed the historic differences in
viability across the Borough. Bringing the CMC into line with the
rest of the Borough would raise significant additional income for
the Council to support the infrastructure need from the growth
planned in the Croydon Opportunity Area. Adopting a nil rating for
specific sites is an inflexible approach that does not allow for
changing development market conditions over time. Additionally,
this would set a precedent for other development sites in the
borough, undermining the integrity of the CIL funding mechanism and
overarching objectives of the charging schedule review.