Mayor Boris Johnson intends to charge up to £50 per m² for £14.5bn rail link
London mayor Boris Johnson is to charge developers up to £50 per m² on new developments in the capital in order to pay for the construction of Crossrail.
Johnson launched a consultation this morning of the proposed charging schedule for the contributions from developers, designed to raise £300m. They will be levied at a variety of rates in all London boroughs on every development above 100m² in size, aside from hospitals and schools.
Even boroughs likely to see very little benefit from Crossrail, such as Croydon and Barnet, will have to charge developers the levy. The charge, between £20-50 per m², will be collected under the government’s proposed Community Infrastructure Levy (CIL) system.
Under the original funding agreement for the £14.5bn Crossrail scheme, a third of the cost was to be paid by central government, a third by London government, and a third by businesses.
Schemes which are given planning approval from spring next year will be liable for the charge, which will be ratified after a public examination scheduled in the autumn. The contributions are separate from those expected under Section 106 agreements, but the mayor promised that any Section 106 contributions would be taken off expected CIL payments.
Johnson said every corner of London will benefit from Crossrail. He said: “Despite the current financial pressures, I am committed to ensuring London meets its fair share of the cost. It is right that the sector that will benefit so much should make its contribution and I am confident that this will not hinder development in the capital.”
The charges are proposed to be levied as follows:
£50 per m² Camden, City of London, City of Westminster, Hammersmith and Fulham, Islington, Kensington and Chelsea, Richmond upon Thames, Wandsworth
£35 per m² Barnet, Brent, Bromley, Ealing, Greenwich, Hackney, Haringey, Harrow, Hillingdon, Hounslow, Kingston upon Thames, Lambeth, Lewisham, Merton, Redbridge, Southwark, Tower Hamlets
£20 per m² Barking and Dagenham, Bexley, Croydon, Enfield, Havering, Newham, Sutton, Waltham Forest