Community Infrastructure Levy FAQ's
What is a community infrastructure levy?
The community infrastructure levy is a local ‘tax’ that local Council’s can impose on new development in order to collect funds to pay for local infrastructure provision and improvements. It is charged on a square metre bases, although household extensions and small business developments are exempt by law.
How is the community infrastructure levy calculated?
The community infrastructure levy must be set at a level that does not affect the overall viability of development within an area. Work has therefore been undertaken to understand the local housing market and the market for different types of commercial development.
- Convenience Retail (Food) - £140 per sqm
- Out of town centre comparison retail (non-food) - £60 per sqm
- Restaurants, Pubs and Takeaways - £40 per sqm
- Residential Care Homes - £80 per sqm
- Hotels - £40 sqm
What can the community infrastructure levy be spent on?
Community infrastructure levy receipts can be spent on local infrastructure improvements and new infrastructure where it supports and/or mitigates the impacts of new development. This can include road improvements, open space provision and the provision of new community buildings and facilities.
Will the community infrastructure levy pay for the entire infrastructure needs in Castle Point?
Due to the restrictions viability places on the amount of levy that can be charged, it is unlikely that it will pay for the borough’s entire infrastructure needs.