Potential Community Infrastructure levy rates

The Community Infrastructure Levy (CIL) is a levy which local authorities can introduce to require developers make financial contributions towards the provision of infrastructure to support new development. It was introduced in 2010 as the Government’s preferred approach for local planning authorities to secure contributions from developers. Most development has some impact on the need for infrastructure and services, or benefits from them. CIL helps ensure the infrastructure that is needed to make development acceptable is funded and delivered.

Rates of Community Infrastructure Levy (CIL) are set out in a document called a Charging Schedule. Rates are expressed in pounds per square metre for all qualifying development. A Charging Schedule can set different rates for different types of development and different rates for different areas of the charging authority. Unlike the current section 106 system for developer contributions as used in Great Yarmuth, CIL is a non-negotiable fixed charge. CIL is discounted based on existing buildings present on a site and certain types of development such as affordable housing are exempt from paying CIL. Self-build developments can also claim relief from CIL.

It is considered there are a number of potential benefits arising from introducing a CIL in Great Yarmouth. A CIL would reduce the time spent on negotiating section 106 obligations, give developers and the community greater certainty of the likely contributions required and potentially raise a greater amount of funding for infrastructure across the Borough.

This consultation seeks feedback on potential rates of CIL which could be introduced alongside a new Local Plan. A consultation on a first draft of the new Local Plan (under regulation 18 of the Town and County Planning (Local Planning) Regulations 2012) is taking place at the same time as this consultation. The First Draft Local Plan has been written on the assumption that a CIL will be introduced alongside the adoption of the plan. Following the consultation on the rates of CIL and the First Draft Local Plan, the Council will consider whether to progress with a CIL or not. If it decides to progress with a CIL it will consult on a Draft Charging Schedule alongside the consultation on a Final Draft Local Plan.

Comments on the potential rates of CIL can be made by emailing localplan@great-yarmouth.gov.uk

The regulations governing the introduction of a local CIL require Local Authorities to have evidence to support a charging schedule and must ensure that the rates of CIL set in a Charging Schedule aim to strike an appropriate balance between the desirability of funding infrastructure through CIL and the potential effects (taken as a whole) of the imposition of CIL on the economic viability of development across its area. Government guidance requires Charging Schedules to demonstrate this by being supported by evidence of infrastructure need and evidence of the financial viability of development with respect to proposed rates.

The Borough Council’s Infrastructure Needs Study (2023) identifies and costs all the infrastructure needed to support development planned within the Great Yarmouth Borough Council plan area. The study also examines whether there are any existing or future funding streams for infrastructure and calculates a funding gap that CIL will need to help address.

The study identifies that the Local Plan requires £56,822,598.66 for essential infrastructure funding with a further £9,036,604.47 considered to be desirable infrastructure to support more sustainable forms of development and deliver place-making objectives. The total infrastructure need of the plan is therefore £65,859,203.13. The introduction of a CIL could help fund this requirement.

The rate of CIL for an area cannot just be set at a rate which closes the funding gap for infrastructure. This rate for all types of development is unlikely to be viable and lead to development not coming forward in the Borough. The Borough Council commissioned specialist consultants, HDH Planning & Development Ltd, to prepare a full Viability Assessment which includes examining the maximum viable rates of CIL that different types of development in different areas of the Borough can afford to viably pay.

The Local Plan Viability Assessment (2024) concludes that in terms of residential development, the viability evidence indicates that £80 per sqm could be charged on most sites across the Borough when 25% affordable house is also sought, with the exception of brownfield sites in the urban area where it would not be viable to charge CIL. The viability assessment advises it will also be difficult and not advisable to charge £80 per sqm CIL at Nova Scotia Farm to the west of Caister. It is best practice for large sites to continue to rely on section 106 contributions so that contributions can be phased in such a way to ensure the viability of development alongside the timely delivery of infrastructure.

The evidence also indicates scope to charge CIL on supermarket developments and retail warehouse developments. It is not, however, viable to charge CIL on sheltered housing, office and industrial development and other types of development in the borough.

This section sets out the CIL rates that the Borough Council proposes to charge across the local planning authority area. The council proposes that given the different viability between types of development and differences in viability for residential development in different areas of the Borough that a single rate of CIL would not be desirable. Therefore, the council proposes to charge differential rates. The rates set out below are in pounds per square metre for net additional increase in internal floorspace.

Residential Zone 1 - £80 per square metre Standard Borough Rates

Residential Zone 2 - £0 per square metre Allocated brownfield sites Great Yarmouth Town Centre Haven Bridge Quayside Area Great Yarmouth Back of Seafront Area

Residential Zone 3 - £0 per square metre Allocated strategic site at Nova Scotia Farm, Caister

Sheltered and extra care housing - £0 per square metre

The zones are shown on the interactive map below

Residential zones and rates have been set with reference to the recommended rates from the Local plan Viability Assessment (2024). The viability assessment identifies that brownfield sites within the urban area of Great Yarmouth generally won’t be able to support CIL. As such it is proposed to have a zero rate of CIL for the brownfield sites proposed to be allocated in the new Local Plan and those parts of the town where new housing is being promoted, such as the town centre and back of seafront area and the Haven Bridge improvement area. Brownfield development elsewhere will be subject to the standard rate of CIL which may create some viability issues. However, these sites will not be essential to the delivery of the new Local Plan and in many cases will receive a substantial discount from CIL due to existing buildings on the site being converted or redeveloped. The First Draft Local Plan also allows the level of affordable housing to be reduced where brownfield residential development is found to be unviable.

It is not proposed to have a CIL rate for the large site proposed to be allocated to the west of Caister (Policy CAS 1 – Nova Scotia Farm). It is best practice for large sites to continue to rely on section 106 contributions so that contributions can be phased in such a way to ensure the viability of development alongside the timely delivery of infrastructure. As such proposed Policy CAS1 of the First Draft Local Plan indicates that the development allocated by the policy will need to make financial contributions towards infrastructure through section 106 planning obligations.

Sheltered and extra care housing inevitably require higher build costs given the special needs of the residents that they cater for. Based on the viability assessment analysis, specialist older peoples housing will not have capacity to bear CIL.

• Supermarkets - £240 per square metre
• Retail Warehousing - £100 per square metre
• All other development - £0 per square metre

The Viability Assessment identified that supermarkets can viably achieve a rate of £240 per square metre with retail warehousing at £100 per square metre. All other non-residential uses (including office uses, for example) would need to be zero rated as they cannot bear the costs of a CIL charge.