Community Interest Levy to add up to £175 per sq m on Leeds developments
THE Community Infrastructure Levy (CIL) has come into effect in Leeds this week that will add up to £175 per sq metre for developments within the city.
Although CILs have been introduced by authorities across the country, with Leeds becoming the thirtieth to do so, it is the first in Yorkshire and Humber.
The levy replaces most, but not all, of the obligations under section 106 of the 1990 Town and Country Planning Act, known as s106 agreements. It is used to collect contributions from developers to fund infrastructure programmes from green space to transport.
Richard Serra, director at planning consultancy Quod and CIL spokesman for the Leeds Property Forum said: “The money raised from CIL will be used to fund the infrastructure that will be necessary to support the city’s growth, for example NGT [New Generation Transport, the proposed trolleybus scheme] the flood alleviation scheme, primary and secondary education, green infrastructure, sports facilities, district heating, and public health facilities.”
A CIL will be levied on most new developments. Supermarkets developments above 500 sq m will be levied at £175 per sq m outside the city centre and £110 per sq m inside, while retail developments above 1,000 sq m will be charged at £55 per sq m outside the city and £35 inside.
Office developments within the city centre will have a £35 per sq m levy attached.
“As a Labour initiative originally, CIL is likely to be here to stay irrespective of the outcome of the General Election on May 7,” added Mr Serra.
“Whether it will generate enough revenue to enable Leeds City Council to deliver the city’s growth infrastructure remains to be seen and there will be discussions subsequently around where and how CIL revenues are spent. In the meantime, landowners and developers need to familiarise themselves with an important new component of the planning system.”
