Developers in Birmingham have been told that proposed new spin-off charges to pay for schools, transport links and other public facilities will be reasonable.
bosses are keen to ensure that the new Community Infrastructure Levy, or CIL, charges do not stop developers and investors in the city coming forward with new projects.
It is through CIL charges that developers can compensate the city council and communities for the impact their activity has on a neighbourhood by providing or improving community facilities.
CIL takes over from the existing Section 106 payments which now have to be invested on the development site itself.
Details of proposed new CIL charges will be presented to the council's cabinet on September 15 before being issued for public consultation and talks with developers.
Cabinet member for development Coun Tahir Ali said: "These revised charges are a direct result of engaging with the private development sector.
"While the city council can decide the level of the charges, once we decide to make a Community Infrastructure Levy charge it is mandatory and therefore we have to consider what is reasonable in the current economic climate.
"It is important that we strike a balance between funding necessary infrastructure from the levy and the potential impact on the economic viability of development.
"These revised charges will still support growth and investment and will allow us to develop the infrastructure needed to support that growth and improve the well-being of local people."
Once set, the CIL charges will come into force from April.
