'Astonishing' new tax on Wimbledon developers

Published by Surrey Comet


A new tax on residential developments could be nine times higher in Wimbledon Village and town centre than Mitcham and Morden. Merton Council’s planned community infrastructure levy (CIL) of £385 per square metre in parts of SW19 has been branded “astonishing”.

The proposed rate for Mitcham and Morden is just £42, while the rate for Raynes Park and Colliers Wood is £140. But the councillor in charge of planning said the provisional rates had been based on viability assessments by experts – and their studies showed they would not impair development.

The council launched a consultation about the rate, which is likely to come into force next year, on Monday. The tax, which will be levied on developers for most new projects, will be used to fund infrastructure improvements including work on schools, parks and transport.

The Government announced councils must use CILs to largely replace section 106 agreements, which currently do a similar job but are set on a case-by-case basis. Jason Orme, editor of Homebuilding and Renovation magazine, called the planned Wimbledon rate “astonishing”.

Writing on his blog he said: “I suspect we won’t see too many new homes in Wimbledon for a while.” But councillor Andrew Judge, cabinet member for environment and regeneration, said analysis proved they would not deter development.

He said: “There’s a balance to be struck... it’s very important we are able to have decent community infrastructure of whatever kind.” The council has also proposed a CIL of £100 per square metre for new retail premises everywhere in the borough.

Coun Judge said analysis found businesses across Merton were facing similar financial pressures, so there was no reason to vary the charge. The council will not impose a CIL for new office space.

Coun Judge said the authority would look at the provisional rates again later this year and once introduced, they would be regularly reviewed.

What's the picture elsewhere?

Other London authorities revealed their plans for CIL rates on residential building.

Wandsworth announced a rate of £150 per square metre, apart from at Nine Elms in Battersea – where the figure is £575 – and in Roehampton where there is no charge. Croydon has proposed no rate in the town centre, but £120 per square metre outside of it. In Redbridge a flat rate of £70 per square metre was introduced for all developments on January 1.

Where are the lines drawn?

The proposed zone for the top rate includes Wimbledon Park and Village, as well as the town centre east of Edge Hill and north of Worple Road and Alexandra Road. Elsewhere, West Barnes and Merton Park are bracketed with Raynes Park and Colliers Wood in the middle band – while Morden and all parts of Mitcham, including Pollards Hill and Phipps Bridge, fall into the lowest band.


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