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Richard Desmond’s development company offers to pay £43m CIL charge for Westferry site
The development company owned by Richard Desmond has offered to pay a £43m Community Infrastructure Levy (CIL) charge on the proposed Westferry Printworks development, after his initial application controversially escaped the levy, Inside Housing can reveal.
In response to the government’s call for new information on the 1,500-home east London development, Westferry Developments offered to pay the £43m CIL charge but has refused to increase the quantum of affordable housing – a major point of contention in the initial application.
The High Court quashed the planning application for the development in May, after housing secretary Robert Jenrick admitted the decision to approve it one day before Tower Hamlets’ CIL charge was introduced in January showed “apparent bias”.
Mr Jenrick then became embroiled in controversy after it was revealed he had approved the application after sitting next to Mr Desmond at a party fundraiser. Mr Jenrick initially said he “refused to discuss” the application with Mr Desmond, but the property developer later admitted showing him a promotional video for the scheme at the dinner.
Just two weeks after the approval, Mr Desmond donated £12,000 to the Conservative Party.
Amid mounting public and media pressure, Mr Jenrick released documents relating to his approval of the project that revealed he pushed civil servants to fast track the decision so that Mr Desmond would not have to pay the CIL charge, sparking calls for his resignation.
Following the public furore, the government called for new information. Another minister who is yet to be named will now decide whether to grant planning approval.
A letter sent to the government by planning consultants DP9 on behalf of Westferry Developments and seen by Inside Housing said the group is “ready, willing and able to commence development of the appeal scheme and pay the associated CIL liability promptly following a grant of planning permission”.
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The group, owned by Richard Desmond, said the additional cost would “inevitably” have an impact on the viability of the scheme, which would typically be reflected in a reduction in the quantum of affordable housing.
But the company said it is “prepared to maintain the 21% affordable housing offer and the same housing mix, despite the additional CIL liability placing significant further downward pressure on the viability of the proposed development”.
An initial application for the Westferry Printworks site, submitted in 2016, offered 35% of the scheme for affordable housing but an expanded version of the plan was then submitted in 2018, offering a higher total number of affordable homes, but this reflected just 21% of the overall development.
Westferry Developments lodged an appeal in March 2019, arguing that Tower Hamlets was taking too long to decide on the planning application.
Mr Jenrick then became involved in the planning case when he overruled his independent planning inspector’s decision to reject the project following a public inquiry in 2019.
The company said that there was “no reason” to reopen the public inquiry into the planning decision, as there has been “no material change in circumstances”.
A spokesperson for the Ministry of Housing, Communities and Local Government (MHCLG) said: “This is a live planning application so it is not appropriate to comment.”
A Tower Hamlets spokesperson said its planning team is continuing to cooperate with MHCLG ahead of the reconsideration of the decision.
They added: “There are a number of key issues, including the scale of the development, the provision of affordable housing and the funding of community infrastructure, that must be given full consideration ahead of any further decision.”
Westferry Developments has been approached for a response.
