Developers could be hit with increased ‘infrastructure levy’

Developers face paying up to double to build in one borough after planning chiefs voted to increase charges.

Lambeth council wants to bump up the amount firms have to pay for roads, pipes and lighting for their building projects.

It would be a first rise in the borough’s Community Infrastructure Levies (CILs) since 2014.

In Zone A, which includes Waterloo and Vauxhall, the council is proposing a charge of £500 per square metre for residential developments, £350 per square metre for Zone B, which includes Kennington, Oval and Clapham, £250 per square metre for Zone C, which includes Tulse Hill, Brixton and Herne Hill, and £200 per square metre for Zone D, which includes West Norwood and Streatham Hill.

Previously developers had to pay £265 per square metre for Zone A, £150 per square metre for Zone B, and £50 per square metre for Zone C and D, which were merged.

For ‘large retail developments’ of more than 280 metres squared, and retail warehouses of more than 1,000 metres squared, a charge of £250 per square metre is proposed for Zone A, up from £115, and a charge of £200 is proposed for Zone B to Zone D, up from £115.

Developers building hotels would be charged £200 per square metre in Zone A to Zone D, double the cost currently.

Sheltered housing, care homes and self-contained extra care schemes would be charged £250 per square metre in Zone A, £175 per square metre in Zone B, and £100 per square metre in Zone C and D.

This type of development was not included in the previous charges.

No CIL for Zone C and D is proposed for office space, while developers would pay £225 in Zone A, up from £115, and £225 in Zone B, up from nothing.

Developers building student accommodation face the highest charges at £400 per square metre in Zone A to D, up from £215.

Smaller retail developments will not pay any CIL under the proposals.

Councillor Matthew Bennett, cabinet member for planning, investment and new homes, said the rises have been assessed to make sure they do not hit affordable housing or work space in Lambeth.

He said: “In brief, this is making sure we are capturing as much value as possible from development in the borough.

“So yes, we’d like to charge more money from developers, please.”

A second consultation on the rises will run from January 31 to March 13.

Pictured is the skyline of Vauxhall