Mayor plans to boost payment of development charge to 30% as consultation launched

The London mayor has extracted only 20% of the Crossrail levy due from developers since introducing the development charge at the beginning of the year.

A spokesman for Boris Johnson said that he was hoping to increase that to 30% of the £213.30/m2 tax on office developments within London's central activity zone (CAZ).

“We're looking for up to 30% these difficult times,” he said.

The news came as the mayor launched the public consultation into the section 106 tax intended to raise £300m towards the cross-London transport scheme.

Crossrail train
A public consultation has been launched into the section 106 tax to raise cash towards Crossrail

In it the mayor said he would consider the “viability” of schemes when seeking a contribution; consider asking for new office developments in central London and the Isle of Dogs to contribute; and lobby transport minister Geoff Hoon to shake down developers outside London who would benefit from the transit line.

The spokesman said the changes proved the mayor was “listening” to the development community.

“We will [continue to negotiate] with developers once the plans are in and if they show us that the development is not viable we will look at figures and continue to take a pragmatic approach,” he said.