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Council calls for rethink on Crossrail development levy

July 26, 2011 - Martin Hoscik@MayorWatch

Richmond Council says boroughs hosting Crossrail stations should face the highest levy. Image: Crossrail
London Mayor Boris Johnson has been urged to rethink plans for a development levy which City Hall expects to raise £300m towards the costs of building Crossrail.

The proposals split the capital into three zones with developers paying a ‘per square metre’ rated based on the location of their development.

The three zones are:

Zone 1 boroughs – £50 per square metre
Camden, City of London, City of Westminster, Hammersmith and Fulham, Islington, Kensington and Chelsea, Richmond-upon-Thames, Wandsworth

Zone 2 boroughs – £35 per square metre
Barnet, Brent, Bromley, Ealing, Greenwich, Hackney, Haringey, Harrow, Hillingdon, Hounslow, Kingston upon Thames, Lambeth, Lewisham, Merton, Redbridge, Southwark, Tower Hamlets

Zone 3 boroughs – £20 per square metre
Barking and Dagenham, Bexley, Croydon, Enfield, Havering, Newham, Sutton, Waltham Forest

Speaking in January Mayor Johnson said he was “confident” the levy would not “hinder development in the capital.”

Councillors in Richmond say it is unfair they have been included in the highest band as there will be no Crossrail station in the borough and have called on the Mayor to charge the highest rate in those boroughs which will directly benefit from the project.

Cllr Virginia Morris, Richmond’s Cabinet Member for Environment, said: “This levy does not provide value for money local people and I believe the Mayor needs to think again.

“It is not equitable – we would pay over the odds but get little in return. We may even lose out because the costs of building new employment premises and homes will rise. That would lead to less business development, lower quality buildings and more intensive housing, none of which we want for this borough.”

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Tagged With: Crossrail

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