A NEW scheme being proposed by Shropshire Council will mean retail developers won’t have to pay a penny towards local infrastructure, when a new development is built.
Under the new Community Infrastructure Levy, retailers will not be required to give money back to the community to help off-set the effect of a new development on the local infrastructure.
In the past, agreements have been drawn up between the council and big supermarkets such as Sainsbury’s in Shrewsbury, which recently pledged £130,000 over three years to provide local infrastructure improvements in the form of a bus service and improved signage in the town centre, when it extends its premises.
A consultation period on the draft charging structure ended last week, and the plans will now be looked over by an independent inspector before they come into effect from October.
Shrewsbury Town Centre Residents Association noted their concerns about the proposed changes in a statement to the council.
John Simblet, from the association, said: “We have some anxieties on the nil levy rate for all nonhousing developments, some of which might impose considerable infrastructure costs without contributing to them, and which might impact unfavourably on services and facilities available in centres of market towns.”
The council will still have the power to enforce Section 106 agreements, on a discretionary basis, for large retail developments that will have significant impact.
Helen Howie, principal policy officer at Shropshire Council said: “We are proposing a nil rate for employment related developments because a viability study showed that the majority of businesses in this category do not make money on the actual development site.” She added: “For employment-related and other non-residential developments, section 106 agreements will continue to be the main mechanism for ensuring that contributions are made where necessary.”
By Catherine Ferris