Purpose

The Council
adopted the current Tower Hamlets Community Infrastructure Levy
(CIL) Charging Schedule in April 2015, followed by a revision in
2020. Since then, development patterns and land values have evolved
significantly. A new viability assessment commissioned in 2024 has
demonstrated that certain uses, particularly Research &
Development (Use Class E(g)(ii)) can support a CIL charge without
undermining development viability.

This paper seeks approval to undertake public consultation on
proposals to revise the 2020 Tower Hamlets CIL Charging Schedule,
to include a new rate of £117 per Square Metre (Sqm) of CIL
liable development for Research & Development uses in the
borough.

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.

Content

DECISION

 

1.    
Approves the Draft CIL Charging Schedule – partial
review and supporting evidence for a 6 week public consultation
(shown in Appendix 1 for LBTH Draft CIL Charging Schedule –
partial review).
 

2.    
Approves the proposed consultation strategy for the Draft CIL
Charging Schedule, in accordance with the Community Infrastructure
Levy Regulations 2010 (as amended). (shown in Appendix 4 for CIL
Statement of Representations Procedure)
 

3.    
Authorises the Corporate Director of Housing &
Regenersation in consultation with the Mayor to:
 

•        
Approve minor modifications to the Draft Charging Schedule
(“DCS”) following the public consultation.

•        
Where no material modifications are required following the
consultation on the Draft Charging Schedule – partial review,
to approve the submission of the Council’s proposed Charging
Schedule – partial review and associated evidence base for
public examination.
 

4.    
Note that if material modifications to the Draft Charging
Schedule – partial review are required following
consultation, that approval to undertake a subsequent consultation
or submit for public examination as necessary will be referred to
the Mayor in Cabinet.
 

5.    
Notes the supporting evidence base produced to support the
Draft Charging Schedule – partial review, meaning:

 

•        
Appendix 2 – LBTH Research & Development CIL
Study

•        
Appendix 3 – CIL Funding Gap Statement - R&D
review
 

6.    
Note the Equalities Impact Assessment Screening shown in
Appendix 5 of the report submitted.

Reasons for the decision

The decision to
approve public consultation on revising the CIL Charging Schedule
to include a specific rate for R&D uses is driven by the need
to ensure that the borough’s infrastructure funding
mechanisms remain responsive to evolving land use patterns and
economic priorities.
 
Tower Hamlets is
experiencing increasing interest in R&D-led development,
particularly in areas such as life sciences, technology, and
innovation. These sectors contribute to the borough’s
long-term economic resilience and diversification, and their growth
presents both opportunities and infrastructure demands. However,
the current CIL Charging Schedule does not differentiate R&D
uses from other commercial categories, potentially leading to
under-collection of contributions from developments that place
unique pressures on local infrastructure.
 
Introducing a
tailored CIL rate for R&D uses will:
 

•        
Reflect the distinct nature of R&D developments: These
uses often have different spatial, employment, and infrastructure
impacts compared to traditional office or industrial
uses.
 

•        
Ensure fair and proportionate contributions: A specific rate
will help secure appropriate funding from R&D developments to
support the infrastructure needed to accommodate them.
 

•        
Support strategic planning objectives: The revised schedule
will align with the borough’s Local Plan and economic
development strategies, which promote innovation-led
growth.
 

•        
Enable meaningful stakeholder engagement: Public consultation
will provide transparency and allow developers, businesses, and
residents to contribute to shaping a fair and effective charging
framework. 

Alternative options considered

Retain the adopted
Charging Schedule with R&D uses remaining as a nil charge and
do not undertake a public consultation on the draft amendment to
include a new R&D charge.
 
Not consulting on
amending the CIL Charging Schedule to introduce a specific rate for
Research and Development uses is not recommended because it would
leave the borough’s infrastructure funding mechanisms
unresponsive to the growing presence of R&D-led developments.
Without consulting on the potential
of a tailored rate, the borough risks under-collecting
contributions and missing strategic planning
opportunities.