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Agenda Item No

 

The Vale of Glamorgan Council

Cabinet Meeting: 17th December 2012

Report of the Cabinet Member for Regeneration, Innovation, Planning and Transportation

Community Infrastructure Levy (CIL) Draft Charging Schedule - Consultation by Caerphilly Council and Rhondda Cynon Taff Council

Purpose of the Report

1.         The purpose of this report is to inform Cabinet about the Community Infrastructure Levy (CIL) draft Charging Schedules that have been published for consultation by Caerphilly County Borough Council and Rhondda Cynon Taff Council and to seek Cabinet's endorsement of the consultation responses. 

Recommendations

1.         That the Cabinet notes the content of the report and endorses the consultation responses attached at Appendix C and D.

Reasons for the Recommendations

1.         The report is for noting and to inform Caerphilly and Rhondda Cynon Taff Councils of the Vale of Glamorgan Council's views on their draft Charging Schedules.

 

Background

2.         Members will recall earlier reports on the Community Infrastructure Levy (CIL) Regulations 2010 and their implications for delivering infrastructure in the Vale of Glamorgan in the future. CIL is a new charging system that can be applied to most forms of development to fund infrastructure improvements that support the development of the authority area in accordance with the Local Development Plan (LDP).

3.         On 21st February 2011 Cabinet resolved to commence work on preparing a Community Infrastructure Levy for the Vale of Glamorgan. Whilst this preparatory work is ongoing, it cannot be progressed to adoption until the Council proceeds to adopt a Local Development Plan.

4.         The Council has recently been consulted on Draft Charging Schedules from nearby Charging Authorities Caerphilly Council and Rhondda Cynon Taff Council who are able to progress their CIL to adoption because they already have adopted Local Development Plans in place. This report outlines their proposals and implications for the Vale of Glamorgan.

 

Relevant Issues and Options

CaerphillyCountyBorough Council

5.         On the 9th October 2012 Caerphilly County Borough Council approved their CIL Preliminary Draft Charging Schedule as the basis for a consultation exercise. Having undertaken a development viability appraisal and prepared a draft Infrastructure List the Council propose to introduce the following CIL rates in respect of residential and commercial developments. A map showing the residential zones is attached at Appendix A.

 

Geographical Area

Rate £ per square metre (Affordable housing funded through S.106)

Rate £ per square metre (Affordable housing funded through CIL)

Lower Viability Area

£0

£0

Mid-Range Viability Area

£25

£125

Higher Viability Area

£40

£250

 

 

Type of Development

Rate (£ per square metre)

A1 Retail Development

£100

B1 Office Development

£0

B2 – B8 Industrial Development

£0

Care & Nursing Home Development

£0

*D1 Primary Healthcare Development

£60

D2 Hotel Development

£0

D2 Cinema Development

£0

A3 Restaurants, Café & Drinking

Establishments

£25

*Excludes all other uses within Class D1 of the Town & Country Planning (Use Class) Order 1987

 

6.         Having undertaken a viability appraisal for their area, Caerphilly CBC have determined that there are three zones of residential viability which require a differential CIL rate set in each zone. Whereas, commercial developments are set at a flat rate across the area and only in respect of a select few types of development; namely A1 and A3 retail and Primary healthcare facilities.

RhonddaCynon Taff Council

7.         On the 21st November 2012 Rhondda Cynon Taff Council advised that their CIL Preliminary Draft Charging Schedule will be subject to a consultation exercise between 4th December and 14th January 2013. Having undertaken a development viability appraisal and prepared a draft Infrastructure List the Council propose to introduce the following CIL rates in respect of residential and commercial developments. A map showing the residential zones is attached at Appendix B.

 

Residential CIL Rate

Zone

CIL Rate £ per square metre

1

 

£0

2

 

£40

3

 

£100

 

 

Type of Development

Rate (£ per square metre)

A1 Retail Development

£100

D1 Primary Healthcare Development

£60

A3 Restaurants, Café & Drinking

Establishments

£25

 

8.         Having undertaken a viability appraisal for their area, Rhondda Cynon Taff Council have determined that there are three zones of residential viability which require a differential CIL rate set in each zone. Whereas, commercial developments are set at a flat rate across the area and only in respect of a select few types of development, namely A1 and A3 retail and Primary healthcare facilities. This is the same approach as Caerphilly but the residential rates are higher.

 

Implications for the Vale of Glamorgan

9.         Given that Caerphilly, RCT and the Vale of Glamorgan are all in the South East Wales region and are similar distances to the regional hub Cardiff, there are potential implications for the Vale of Glamorgan and its future decisions on CIL rates which result from these proposals. For example, if the Vale of Glamorgan Council set a residential or commercial CIL rate far higher than that of Caerphilly or RCT it could adversely affect development viability in the Vale of Glamorgan and make other authority areas more attractive to developers by comparison, which could undermine the deliverability of the Vale of Glamorgan Local Development Plan. Thus, it will be vital that in setting our CIL rate the Council base it on sound financial viability information. Regulation 14 makes it clear that it is up to the Council to strike what appears (to the Council) to be an appropriate balance between funding infrastructure required to support the development of its area, and the potential effects of CIL on the economic viability of development across its area. Therefore this will be given careful consideration in due course.

10.      Having considered the evidence supporting these Council's proposals it is generally accepted that their approach is sound. However, Caerphilly Council do appear to be adopting a cautious approach and propose to set CIL rates at the lower end of the range suggested to be viable by their evidence. This has been noted in the consultation response attached at Appendix C.

11.      In terms of infrastructure delivery, neither authority is proposing to deliver regional infrastructure projects through their CIL revenue at this stage. Therefore, these proposals do not have a significant direct affect on infrastructure delivery in the Vale of Glamorgan.

Resource Implications (Financial and Employment)

12.      This report has been prepared within existing budgets and has no direct impacts on resources.

Sustainability and Climate Change Implications

13.      None arising from this report.

Legal Implications (to Include Human Rights Implications)

14.      The Planning Act 2008 makes provision for local authorities to prepare a Community Infrastructure Levy. On the 6th April 2010 The Community Infrastructure Levy Regulations 2010 (the CIL Regulations) came into force in England and Wales which established the procedure for introducing CIL. The Localism Bill may make further changes to the CIL Regulations.

Crime and Disorder Implications

15.      None arising out of this report.

Equal Opportunities Implications (to include Welsh Language issues)

16.      None arising out of this report.

Corporate/Service Objectives

17.      The contributions paid by Developers through CIL will have a wide impact on many of the Council’s functions including education, community facilities, highways and public transport.

Policy Framework and Budget

18.      This report is a matter for Executive Decision by Cabinet.

Consultation (including Ward Member Consultation)

19.      None as this matter does not relate to a single ward in the Vale of Glamorgan.

Relevant Scrutiny Committee

20.      Economy & Environment.

Background Papers

Town and Country Planning Act 1990

The Planning Act 2008

The Community Infrastructure Levy Regulations 2010

 

Contact Officer

Victoria Robinson, Principal Planner (Development Control)

Tel: 01446 704662

 

Officers Consulted

Operational Manager Committee Reports

Senior Accountant

 

Responsible Officer:

Rob Thomas

Director of Development Services