9 October 2013, Oxford City Council adopted its first Community Infrastructure Levy (CIL) Charging Schedule on 30 September 2013. The CIL is a tariff based approach to securing developer funding towards the provision of new infrastructure.

When does it come into effect?

This new mechanism comes into effect on 21 October 2013 and will be based on a flat-rate per m² of new floor space.

Any planning applications not determined before this date may be subject to the charge.

Which developments will be liable for CIL?

• Development that creates 100m² or more of new build floor space measured as Gross Internal Floor Area (GIA)
• Development of less than 100m² new build GIA, that results in the creation of one or more dwellings
• The conversion of a building that is no longer in lawful use

What will the charge rates be?

The charge rates will vary by the type of development with housing, retail, eating and drinking establishments and student accommodation liable to a charge of £100 per m² and other forms of development, including new offices and hotels, liable to a charge of £20 per m².

Which developments will be exempt from CIL?

• Development that creates less than 100m² of new build floor space measured as GIA and does not result in the creation of one or more dwellings
• Buildings into which people do not normally go, or only go to perform maintenance
• Buildings for which planning permission was granted for a limited period
• Affordable housing, subject to an application by a landowner for CIL relief
• Development by charities for charitable purposes subject to an application by a charity landowner for CIL relief

With the introduction of CIL, the use of Section 106 legal agreements is to be scaled back to cover only site-specific mitigation (e.g. highway improvements to allow access into a site) and the delivery of affordable housing.

Ian Gillespie, Head of Planning in Carter Jonas’ Oxford office said:

“Oxford City Council is one of the first authorities in the South East to adopt CIL. The CIL charge rates are non-negotiable, meaning that where the viability of a development is in question, the applicant and Council will need to negotiate on other issues – potentially to include the form of the development and the mix of uses, or the level of affordable housing to be provided.”