The London Borough of Croydon is investigating a community infrastructure levy (CIL) charging scheme over the next six weeks.
The aim is to put a possible CIL schedule out to consultation in September and possibly adopt the levy by the end of 2012.
Presenting to members of the Develop Croydon Forum, the council’s head of spatial planning, Tim Naylor, said that workshops would be scheduled for the summer, with full details revealed at the Develop Croydon conference in November.
Director of planning and building control Mike Kiely said: “It provides us with a rate per square metre which will give us much greater transparency [than Section 106 agreements, which CIL will replace] as to what the council requires of developments, and provides more confidence for developers.”
Kiely said that section 106 delivers about £1.5-£2m a year to Croydon, compared to an anticipated £7m annually through the CIL.
“With a known income stream, the local authority can borrow against it and therefore, be much better at planning and delivering the infrastructure needed to support new development,” he added.
Nick.whitten@estatesgazette.com
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