Minutes:
Community Infrastructure Levy
Tim Cutts, Team Leader - Planning Policy, explained that the Community Infrastructure Levy (CIL) would replace most Section 106 payments. CIL would not be negotiated, but was mandatory; and payments due would be established before the development started. There were some exceptions to this, for example for developments by charities and affordable housing developments. The moneys raised could only be used for infrastructure. After 2014, the use of Section 106 would be very limited. Under CIL, it would also not be possible to pool moneys to be spend on a larger improvements, for open spaces or public transport, for example. After the introduction of CIL, Section 106 would be more site specific and could be used for things like access roads.
Tim went on to outline the different zones and charges which would be applied under CIL, and which were currently being consulted upon. These ranged from payments of £400 per square meter in the most expensive zones to £50 per square metre around the Old Kent Road and in Peckham. Office developments would only be asked to pay in the most expensive zone. He went on to say that some of the CIL could be used to fund projects on the project bank, and that its main purpose was to support growth. The “CIL infrastructure plan” was going to be adopted over the next year. Guidelines around CIL were expected from central government over the course of the year.
In answer to questions from the floor and from councillors Tim
explained that the proposed charges reflected the land value in the
area. He explained that transport links had been a factor in
putting together the proposed pricing and zones, as well as the
fact that property prices west of Shad Thames increased enormously.
He went on to explain that, in principle, CIL moneys could be used
all over the borough, on strategic aims, and that it could include
issues like the traffic on Lower Road. Tim reminded the meeting
that the council was about one year away from generating CIL
funding.
The chair remarked that the new regime would bring more freedom, but that the council needed to make a list of its strategic priorities. The meeting also heard that Strategic Section 106 funding could be used further away from the proposed development (see item 15), as long as a “a meaningful proportion” was used for local infrastructure.
In answer to further questions, Tim explained that where developers chose to build was up to them, but that the zones and charges reflected the market value of the land. Developers tended to locate their developments in areas, where they stood to make the most profit. The zones and charges would be reviewed periodically and if changes were proposed, there would be a formal consultation process about this. In terms of using CIL to improve the current housing stock, this was currently under discussion with the Mayor of London.
For further information about CIL, please contact Tim Cutts, Team Leader Planning Policy, tim.cutts@southwark.gov.uk or 020 7525 5380.
Cleaner Greener Safer
Michelle Normanly, Senior Project Manager, informed the meeting that the application process for the Cleaner Greener Safer Fund 2013/2014 was now open. There was a combined budget of just under £550,000 for capital programmes (for physical changes/improvements to the area) and revenue funded projects (like extra street cleaning, reusable shopping bags) in the Bermondsey and Rotherhithe Community Council area. There was only one application form for both funds, and officers would direct eligible projects to the right programme. In a further change to the procedures, organisations could now apply for funding and manage the project themselves. The current round of applications closed on 30 November 2012.