COMMUNITIES in Swindon will soon have more certainty about how much cash developers must contribute to support infrastructure improvements on smaller and medium-sized projects.

The Community Infrastructure Levy (CIL), a new national scheme under the Localism Act, will replace so-called section 106 agreements for new developments smaller than 850 homes.

The scheme, which comes into force on April 1, 2013, will set a fixed rate for each square metre of new floorspace, rather than a rate based on number of units.

Section 106 agreements, legal agreements between the council and the developer, will remain for 850-plus home estates because officials believe this is still the best way to secure cash to offset the effects of “strategic expansion areas”.

Coun Dale Heenan, Swindon Council’s cabinet member for strategic planning and sustainability, said: “It’s non-negotiable. So a developer wouldn’t be able to say ‘we want to build this, and your section 106 charge doesn’t make the scheme viable anymore and we’ll lose money on it’.

“That’s when we have to go to viability and a whole lot of red tape and we renegotiate what the figure should be. With CIL, it’s a non-negotiable flat rate. If the developer pays too high a price for the land, that’s their problem.”

GVA, an independent property advisor, has recommended the rate should be £55 per square metre for residential homes, with different rates for non-residential properties ranging from nothing for a small business to £200 for a supermarket.

Under this measure, the developer would pay about £2,750 for an average one-bed flat, £4,125 for a two-bed house and £5,775 for a four-bed house.

The cash goes towards infrastructure including roads and other transport facilities, flood defences, schools, medical facilities, sports and recreational facilities and open spaces.

Swindon Council is consulting with residents, parish councils and developers on the proposed rates.

Coun Heenan said: “It’s to give clarity to developers that if they build a house in Swindon, they know what’s required of them. Likewise, it allows the council to say this is the infrastructure we need in Swindon and this is how we’re going to pay for it.

“The consultation is to ask if that figure is appropriate.”