How will a charging authority set a rate for their levy?

Charging authorities must produce a document called a charging schedule which sets out the rate for their levy.

The levy is intended to encourage development by creating a balance between collecting revenue to fund infrastructure and ensuring that the rates are not so high that they put development across the area at serious risk.

These rates should be supported by evidence, such as the economic viability of new development and the area’s infrastructure needs.

The charging authority can set one standard rate or it can set specific rates for different areas and types of development.

Any differential rate must be justified by the economic viability of new development.

Charging authorities must consult their local communities – including local businesses and neighbouring authorities – regarding their proposed rates for their levy.

Anyone has the right to give their views on the formally published draft charging schedule.

It must also undergo a public examination by an independent person (for example, a qualified planning professional, such as a planning inspector, or a chartered surveyor) before the charging authority can formally approve it.

Reproduced from the Communities and Local Government summary pdf on CIL