Cambridge City Council is considering introducing new charges on developers building in the city, in order to raise more money to be spent on infrastructure projects.
Developers building in Cambridge could face new charges to make sure they pay their “fair share” towards the city’s infrastructure. Cambridge City Council is considering introducing Community Infrastructure Levy (CIL), charges, which would see developers pay fixed amounts towards infrastructure in the city.
Other councils in the area already have these charges, including in Huntingdonshire and East Cambridgeshire. Councillor Katie Thornburrow (Labour), cabinet member for planning and transport, said there is not currently enough money available to deliver “all the necessary transport improvements” the city needs.
She said: “Simply put, CIL is a fixed charge that developers must pay to build new homes or commercial spaces. The money raised is pooled together to fund essential infrastructure, such as transport and community facilities, that our growing city needs.
“Cambridge currently relies on Section 106 contributions, which are negotiated site by site. Moving to CIL will secure more funding and speed up the planning process.
“There is a funding gap for transport issues, the Greater Cambridge Partnership has identified it does not have enough funds to deliver all the necessary transport improvements. If we introduce CIL we will have a more reliable way to reduce that gap and ensure developers pay their fair share towards what the city needs.”
The proposed charges developers could face include £175 per square metre for offices and research and development projects; £60 per square metre for houses, flats, retirement homes, and student accommodation; £50 per square metre for shops, restaurants, financial and professional services, and hotels; and £35 per square metre for industrial buildings and data centres.
A report published by the city council said if these proposed charges are introduced, based on previous levels of growth, it could generate at least £25million over the next five years.
The city council’s cabinet agreed this week (February 10) to move forward with the plans by holding a four week public consultation about the proposals, which is due to take place between February 16, and March 16.
Councillor Anna Smith (Labour) said she was “very much in favour of holding developers to account and making sure they pay their fair share”.
Councillor Naomi Bennett (Green Party) highlighted that CIL was introduced as an option for planning authorities in 2010, she asked why the city council held off introducing it.
She also raised concerns that it could be “avoided” by developers and asked what steps the city council plans to take to prevent developers from avoiding the charges.
Cllr Thornburrow said the city council had considered introducing CIL charges in the past, but had paused this work to see if the national government would be replacing it with a different system.
She said the government had confirmed in 2024 that CIL would not be scrapped, which she explained had offered the authority the “opportunity to rethink”.
Stephen Kelly, joint director of Greater Cambridge Shared Planning and 3C Building Control, said there was actually “quite widespread avoidance through Section 106 regime”.
He explained that there are enforcement measures available under CIL, which he said included being able to stop developments if a developer has failed to pay any up front CIL charges required.
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