London Mayor publishes draft CIL charging schedule
The London Mayor published on 17 January 2011 for consultation proposals for a new London-wide Community Infrastructure Levy (CIL) on development in London to help fund a projected shortfall of £300m for the funding of CrossRail. The setting of a London wide Community Infrastructure Levy is possible by a new power given to the Mayor under the Planning Act 2008.
Once adopted, which is likely to be from the spring 2012 , the money raised will go towards London's share of the Crossrail funding package agreed with Government. The levy will be collected by the London Boroughs once development commences.
With the exception of health and education developments, the levy is to be payable on all new developments which have a 100 square metres or more of gross internal floorspace or involves creating one dwelling even where this is below 100 sq m.
The draft charging schedule is as follows:
|London Boroughs||Rates (£ per sq. m.)|
|1||Camden, City of London, City of Westminster, Hammersmith and Fulham, Islington, Kensington and Chelsea, Richmond-upon-Thames, Wandsworth||£50|
|2||Barnet, Brent, Bromley, Ealing, Greenwich, Hackney, Haringey, Harrow, Hillingdon, Hounslow, Kingston upon Thames, Lambeth, Lewisham, Merton, Redbridge, Southwark, Tower Hamlets||£35|
|3||Barking and Dagenham, Bexley, Croydon, Enfield, Havering, Newham, Sutton, Waltham Forest||£20|
In calculating the rate per Borough, the consultation document concludes that the new CIL levy "will not put at serious risk the overall development of Greater London because of any impact on development viability."
The Mayor does not therefore propose to make exceptions to this charging schedule; he considers that it would be better to address problems of viability caused by the combined demands of CIL and section 106 agreements by making any necessary adjustments to the latter, in accordance with on going planning negotiations. Any outstanding disputes could also be dealt with through the appeals procedures under the Town and Country Planning legislation.
The preliminary draft schedule and this document are open to public consultation from Monday 17 January to Tuesday 1 March 2011.
To view the draft CIL charging schedule and make comments please click here
Before CIL is finally introduced, and in the interim, the Mayor will continue, via the existing tariff based section 106 system, a further £300m towards the cost of Crossrail.