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Merton publishes CIL draft charging schedule

The London Borough of Merton has reduced its proposed community infrastructure levy (CIL) rates for residential developments in Wimbledon by over 40% in its second round of consultations on the levy.03 Apr 2013

The Council last week launched a consultation on its draft charging schedule (DCS) (3-page / 6.18MB PDF) in which it proposes to divide its administrative area into two charging zones for residential developments.

One zone covers Colliers Wood, Raynes Park and Wimbledon where a residential rate of £220 per square metre has been proposed. A rate of £115 per sq m has been proposed for the other zone, which covers Mitcham, Morden and West Barnes.

For retail developments, the Council has proposed a Borough-wide rate of £110 per sq m. A proposed zero rate levy will apply to all other types of development.

The proposed rates differ from the rates set out in the Council's preliminary draft charging schedule (PDCS) which it consulted on between January and March last year.

The PDCS had proposed to divide the Borough into three residential charging zones, with a rate of £385 per sq m to apply in Wimbledon, a rate of £140 per sq m in Raynes Park and Colliers Wood and a rate of £42 per sq m in Mitcham and Morden. A flat rate of £100 per sq m was proposed to apply to all retail developments.

Following the PDCS consultation the Council undertook a further viability study in November last year. It said that this study produced different rate recommendations compared to an initial viability study in 2011 because of differences in the methodologies and range of assumptions tested by each study.

In addition to CIL charged by the Council, any developments in the Borough will also be subject to Mayoral CIL. The Mayoral CIL charge in Merton is £35 per sq m on all uses except for health and education purposes, which are exempt from Mayoral CIL.

The consultation will be open until 10 May. The Council said it expects to adopt CIL by February 2014.