Local authorities in Lincolnshire are changing to the way landowners and developers contribute to projects such as Lincoln’s Eastern Bypass with a new charge.
The Central Lincolnshire local authorities will introduce the Community Infrastructure Levy (CIL), which will add investment into various local infrastructure projects.
There will be a number of fixed charges for different types and sizes of developments, with a fixed payment schedule.
The money will then be put towards projects within the Infrastructure Delivery Plan (IDP), like road improvements and secondary schools.
Proposed rates range from £20 to £45 per square metre, with affordable housing projects exempt from the charge.
Within retail, a flat rate of £60 per square metre is proposed, but hotel, leisure, office and industrial development would incur no cost.
Larger developments under CIL would not have to pay upfront, instead being able to pay in instalments once the development has an improved cash flow.
The levy runs alongside the existing planning agreements between councils and developers — Section 106 agreements.
Draft documents have been drawn up by the City of Lincoln Council alongside Lincolnshire County Council, North Kesteven and West Lindsey District Council.
The plans already have backing from the City Council’s Executive.
Leader of the City Council Cllr Ric Metcalfe said: “The CIL will play a vital role in funding projects that are essential to deliver future growth in the city and neighbouring districts.
“At the same time as improving infrastructure in and around Lincoln we have to increase the supply of affordable housing and this can only come from stimulating growth and development which will be aided by the CIL.”
The charges and payment schedule will go through a consultation process and be further refined before aiming for Secretary of State approval.
The final decision and introduction of the charge is expected in autumn 2014.