Colchester town centre retailers are set to get a bargain of their own under new guidelines being drawn up by Colchester Council.

The council is piloting a new scheme which sets out how much developers should contribute when they build a new project.

Its draft community infrastructure levy charging schedule proposes developers of retail schemes in the town centre pay only half the rate of the backers of out-of-town projects.

Nick Barlow, the council’s portfolio holder for planning, said the proposals were designed to balance costs, but denied the authority was against out-of-town development.

Developers were previously requested to contribute to community facilities or infrastructure when building major projects.

Under the new levy, a set rate would be fixed so all developers know what they would be expected to pay.

The draft schedule proposes a rate of £120 per square metre of retail floorspace in the town centre, or if the scheme is less than 430 sq metres in size. All other retail schemes would be subject to a rate of £240 per sq metre.

Mr Barlow said: “The aim of the lower rate is to avoid pricing developers out-of-the-town centre. There are high infrastructure costs in the town and we don’t want to price people out of the market.

“Therefore, we are setting the rate lower so in town developers are encouraged to go ahead.”

But Mr Barlow denied the cards were stacked against out-of-town development.

The council has been criticised for the stringent rules governing what developments are allowed at out-of-town shopping centres, such as Tollgate in Stanway.

It has faced criticism for insisting areas allocated for employment are used for offices and industry, as opposed to retail developments.

Mr Barlow said: “We are not opposed to out-of-town development, where it is appropriate. It is a question of getting the balance right.”