How will changes to the way developers contribute to the cost of local infrastructure affect funding for new schools, libraries and transport links?

The London Assembly’s Planning Committee is holding a review of how the new Community Infrastructure Levy (CIL) will apply in the capital and the risks and opportunities it represents for London boroughs.

Future work

We will return to this investigation later this year.

Our work so far

We have now published our consultation response on CIL, attached below.

The Committee held two meetings about CIL.  The first took place on Thursday 13 September, where the Committee questioned a range of expert guests about how the CIL will play out in London. 

The final of two meetings on CIL took place on 17 October, where the Committee looked at the viability of the levy, the impact on social housing, and pooling the levy between local authorities to pay for cross-boundary projects.

Background

Boroughs will have the option to set a CIL on new developments, per square meter of floor space. The levy is designed to replace Section 106 agreements where developers agree to fund specific local projects – such as a new playground or bus stop - as a condition of planning permission, though it is unclear whether Section 106 will dissapear completely or continue in some other form alongside the new levy.

Earlier this year the Mayor introduced a London-wide CIL designed to raise £300m toward the cost of the Crossrail project. Now local authorities will be able to set an additional levy for their borough and decide where the proceeds are spent. To date, 14 London boroughs have submitted their draft charging schedules, with only two adopted so far. 

The rates vary, both by borough and type of development. The proposed charges for residential development range from £10 per square metre in some parts of Barking and Dagenham, £70 in Redbridge, £120 in Croydon and up to £575 in the Nine Elms area of Wandsworth.

Our investigation

As part of the review the Committee will focus on:

• Collecting information on the borough's work on their CIL schedule to date and the challenges they are facing
• Identifying the potential long-term impact on London
• Examining the principles behind the CIL, in particular the issue of equity between boroughs, and if appropriate, to recommend changes to the Mayor and Government

More details of the scope of the investigation are attached below: