Details of a new levy on “most new developments” granted planning approval from Spring 2012 which will provide part of London’s share of the Crossrail funding have been published for consultation by City Hall.
Under proposals published yesterday there will be three geographic tiers of levy:
£50 per square metre for developments in Camden, City of London, City of Westminster, Hammersmith and Fulham, Islington, Kensington and Chelsea, Richmond-upon-Thames and Wandsworth
£35 per square metre for developments in Barnet, Brent, Bromley, Ealing, Greenwich, Hackney, Haringey, Harrow, Hillingdon, Hounslow, Kingston upon Thames, Lambeth, Lewisham, Merton, Redbridge, Southwark and Tower Hamlets
£20 per square metre for developments in Barking and Dagenham, Bexley, Croydon, Enfield, Havering, Newham, Sutton, Waltham Forest
It is expected the levy will raise around £300m for the scheme which, along with a business rate supplement expected to raise £4bn, will provide the capital’s share of the scheme’s £16bn cost.
There have been calls for areas outside the capital which will be served by, or benefit from, the project to also contribute funding.
In a statement Mayor of London Boris Johnson said: Every corner of London will benefit once construction is complete and 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. However, through this important consultation I want to ensure we have heard and considered every point of view.”
London First, which represents the capital’s business lobby, said it was “vital” the levy “is not set too high thus preventing development and the very growth it is supposed to support.”
Chief Executive Baroness Jo Valentine said the body would “examine the detail of the Mayor’s proposals with our business members and respond to the consultation.”
The consultation process will run for six weeks, with comments to be received by 1 March 2010. For more details visit http://www.london.gov.uk