Below are some extracts from a Planning Resource article, which suggests that some councils are using CIL as a mechanism for discouraging unpopular developments.
Charging different rates for different types of development is extremely common - most charging authorities have taken this approach. It is also clear, from the charges adopted so far, that residential developments and large-scale retail developments attract the most expensive rates.
Interestingly, there is evidence to suggest that the more controversial developments (such as housing developments outside of existing allocations or student accommodation) do attract higher rates than less contentious schemes (office buildings and small retail schemes).
To date, this has been justified on the basis that these developments tend to be more profitable than their smaller counterparts, but it is not hard to see how there could be a policy dimension to it.
"Unite Students’ associate acquisitions and development director, Alex Taylor, told a London seminar organised by property industry lobby group the British Property Federation (BPF) last month that some authorities were using the levy to hinder student accommodation developments." "An analysis of CIL rates in London by Planning shows that maximum charges for student accommodation exceed £350 per square metre in four London boroughs – Tower Hamlets, Hackney, Camden and Islington – with the charges outstripping maximum residential rates in three of those four authorities" "BPF director of communications, Ghislaine Halpenny, agreed there is evidence that some councils are using CIL as a "policy tool" to hamper student accommodation developments. She said this is "unhelpful" for the higher education sector, which "desperately needs" more growth, with one implication being that availability of other homes falls as they are taken by students"