DCSIMG

‘Extension tax’ to help plug council cash gap

editorial image

editorial image

Householders and businesses face having to shell out for large extensions and new builds to help pay for public projects in Dacorum.

The Community Infrastructure Levy could charge up to £250 per square metre (psm) on developments from March 2014.

Dacorum Borough Council’s cabinet has agreed to a public consulation on the proposed charges, which won’t apply to small residential extensions.

Under the plans, Dacorum would be split into three zones. Zone 1 would be Berkhamsted and surrounding areas, Zone 3 would cover Hemel Hempstead and Markyate and Zone 2 would be everywhere else.

Zone 1 would have the highest rate for residential development, £250 psm, and Zone 3 the lowest at £100 psm. Retirement housing would be charged at £125 psm and large shops £200 psm. Other developments would not be taxed.

Councillor Terry Douris, Dacorum Borough Council’s planning and regeneration supremo, said: “The charge will apply to the next increase in floorspace. Developments of the same size will not have to pay CIL.”

The council believes the CIL could bring in £2.9million a year for roads, schools and urban spaces although the funding gap for projects is put at more than £60million. Mr Douris added it was important the CIL wasn’t set too high as it might prevent developments happening.

Councils already have powers to charge large developments so-called Section 106 contributions for specific projects. CIL will be examined independently and be passed by the full council.

 

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