How will changes to the way developers contribute to the cost of local infrastructure affect funding for new schools, libraries and transport links? How can boroughs strike the right balance between raising money in the long-term without deterring development? Is this the end for Section 106 and what will the implications be for affordable housing?

The London Assembly’s Planning Committee will next week examine how the new Community Infrastructure Levy (CIL) will apply in London and the risks and opportunities it represents for London boroughs^[1].

Boroughs will have the option to set a CIL on new developments, according to 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 disappear completely or continue in some other form alongside the new levy.

The Mayor already has a Levy in place across London 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^[2].

Ahead of the meeting, Nicky Gavron AM, Chair of the Planning Committee said,

“London has an urgent need for funding for more social infrastructure like education, health and transportation and CIL could be the answer. At the same time, there are a number of risks, including that developers will be deterred by the fees and build instead in nearby local authority areas with lower levies. There are also serious concerns that social housing will be squeezed.

“This meeting is an opportunity for the Committee to quiz local authorities and experts about the risks and opportunities the CIL represents for the capital.”

Next week’s meeting is the first of two public hearings as part of the Committee’s investigation into the introduction of CIL in London^[3].

The meeting will take place on Thursday, 13 September from 2pm in the Chamber at City Hall (The Queen’s Walk, London SE1). Media and members of the public are invited to attend. The meeting can also be viewed via webcast

Notes to Editors

1. On 17 October the Committee will hold a second meeting on this subject to discuss with invited experts the impact of CIL and the Mayoral CIL on London regeneration and also what guidance the Mayor could offer in this respect to boroughs.
2. London boroughs are at different stages in developing or adopting their charging schedules.  To date, nine London boroughs have submitted their draft charging schedules, with only one adopted so far (Redbridge).  The rates vary, both by borough and type of development: for example, for residential development, the proposed charges range from £10 per square metre in some parts of Barking and Dagenham or £70 in Redbridge, to £120 in Croydon or £575 in the Nine Elms area of Wandsworth.
3. More information about the investigation
4. Read the full agenda papers for the meeting.
5. The Chair of the Planning Committee, Nicky Gavron AM, is available for interview.  See contact details below.
6. As well as investigating issues that matter to Londoners, the London Assembly acts as a check and a balance on the Mayor.

For media enquiries, please contact Alastair Cowan on 020 7983 4504.  For out of hours media enquiries, call 020 7983 4000 and ask for the London Assembly duty press officer.  Non-media enquiries should be directed to the Public Liaison Unit on 020 7983 4100.