Use of planning obligations in the funding of Crossrail, and the Mayoral Community Infrastructure Levy - SPG

The Mayor has updated his Supplementary Planning Guidance (SPG) on the ‘Use of planning obligations in the funding of Crossrail, and the Mayoral Community Infrastructure Levy’.

It will come into operation on the 1 April 2013. This updates guidance on implementation of London Plan policies on the funding of Crossrail, planning obligations and the Community Infrastructure Levy (CIL) and it replaces the SPG on "use of planning obligations in the funding of Crossrail" published in July 2010.
 
It is available as either a pdf or a rtf file to download, below:

Crossrail PDF (opens in new window)
Crossrail RTF (opens in new window)

In November 2012, the Mayor issued for public consultation draft supplementary planning guidance on 'Use of planning obligations in the funding of Crossrail, and the Mayoral Community Infrastructure Levy'. The SPG was subject to 6 weeks public consultation. The Mayor has carefully considered the representations received and his response is set out below in both pdf and rtf format:

Consultation responses PDF (opens in new window)
Consultation responses RTF (opens in new window)

In line with the Department of Communities and Local Government (DCLG) Guidance on the Community Infrastructure Levy (paragraph 101) the Mayor will be introducing a CIL instalments policy, effective from the 1 April 2013.

For developments where the CIL payable is £50 - £500,000 the whole amount shall be paid not more than 60 days after commencement of the development.

For developments where the CIL payable is £500,000+, developers have the option to make two instalment payments:

• The greater of £500,000 or half the value of the total payable amount 60 days after commencement and;
• The remainder 240 days after commencement.

Instalments policy PDF (opens in new window)
Instalments policy RTF (opens in new window)

Use of planning obligations in the funding of Crossrail, and the Mayoral Community Infrastructure Levy - draft SPG

The Mayor has issued for public consultation draft supplementary planning guidance on 'Use of planning obligations in the funding of Crossrail, and the Mayoral Community Infrastructure Levy'. This provides guidance on implementation of London Plan policies on the funding of Crossrail, planning obligations and the Community Infrastructure Levy (CIL). When published it will replace the SPG on "use of planning obligations in the funding of Crossrail" published in July 2010.

The draft guidance includes:

• Details of the Mayor's policy for using planning obligations (often known as "section 106 agreements") to seek contributions towards the cost of Crossrail
• Information about the Mayor's Community Infrastructure Levy
• Guidance on implementation issues relating to both policies
  Information about the Mayor's role in borough CIL-setting, and general guidance on the CIL.

Use of planning obligations in the funding of Crossrail, and the Mayoral Community Infrastructure Levy PDF (opens in new window)
Use of planning obligations in the funding of Crossrail, and the Mayoral Community Infrastructure Levy RTF (opens in new window)

Comments should be received by 6pm on Tuesday 15 January 2013

Mayor agrees CIL to commence on 1 April 2012

On 29 February 2012, the Mayor agreed his CIL charging schedule, accepting the recommendation of Keith Holland, the independent examiner.  The levy will apply to developments consented on or after 1 April 2012, and will be collected by London boroughs once development commences.

CIL charging schedule April 2012 PDF (opens in new window)
CIL charging schedule April 2012 RTF (opens in new window)

The setting of a Londonwide Community Infrastructure Levy is a power given to the Mayor under the Planning Act 2008 designed to raise money for the infrastructure needed to develop an area. The Levy will be charged on most developments in London at the following rates:

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

The Mayor and TfL have prepared a short note for applicants for planning permission:

CIL note February 2012 PDF (opens in new window)
CIL note February 2012 RTF (opens in new window)

The Mayor will be providing further guidance in due course. Please see below for a scanned copy of the report to the Mayor which he agreed on 29 February 2012:

CIL report to Mayor 29 Feb 2012 PDF (opens in new window)

Use of the CIL

The levy will raise £300 million towards the delivery of Crossrail, which is essential to the capital's growing economy and to ensuring it remains a competitive global business centre in the 21st century. It forms part of the funding package for the project agreed between the Mayor and ministers.

Crossrail will bring significant benefits across London improving the transport system, creating thousands of new jobs. It is estimated that every London borough, not just those on the Crossrail route, will see annual benefits to its economy ranging from £15 million to £115 million. It will support development in key parts of London, including the West End, the Isle of Dogs and the Thames Gateway.

Under Regulation 123 of the Community Infrastructure Levy Regulations 2010 (as amended), an authority charging CIL can publish a list of infrastructure projects or types of infrastructure that it intends may be funded in whole or in part by CIL.  This allows the continued use of planning obligations (S.106 agreements) for other projects or types of infrastructure.  For the purposes of this regulation, the Mayor’s list is as follows:
1.    Scheduled works within the meaning of Schedule 1 to the Crossrail Act 2008

CIL Examiner’s Report to the Mayor

On 27 January 2012 the Mayor received the report of Keith Holland BA (Hons) DipTP MRTPI ARICS, the independent examiner who conducted the Examination in Public (EiP) into the Mayor’s proposed community infrastructure levy (CIL) charging schedule.  Mr Holland recommended that the charging schedule be approved.

CIL EiP Examiner’s report PDF (opens in new window)
CIL EiP Examiner’s report RTF (opens in new window)

Mayoral CIL Examination in Public

On 31 August 2011 the Mayor formally submitted his proposals for a new Londonwide CIL for public examination. Keith Holland, the independent examiner appointed by the Mayor, conducted an Examination in Public (EiP) into the Mayor’s CIL proposals. This was held in City Hall from 28 November to 2 December 2011.

The Mayor submitted to the examiner the documents required by the CIL legislation:

Draft charging schedule (August 2011) PDF (opens in new window)
Draft charging schedule (August 2011) RTF (opens in new window)

CIL supporting evidence PDF (opens in new window)
CIL supporting evidence RTF (opens in new window)

Mayoral CIL Draft Charging Schedule

On 8 June 2011 the Mayor launched a four week public consultation on a draft charging schedule – the second step in setting a Mayoral CIL.

The consultation document:

• Gives some background information about the CIL and how it is set
• Explains the Crossrail project and the arrangements for its funding, including the part identified for the CIL
• Sets out the preliminary draft charging schedule, to which this consultation formally relates. This can be found on pages 25-32 of the PDF version of the document (and on pages 32-42 of the RTF version of the document).
• Explains the development viability evidence on which the CIL proposals are based
• Describes the considerations the Mayor has taken into account in developing these proposals
• Sets out how responses should be made to the Mayor’s proposals and how you can make sure you will be involved in the next stages of the process (this is what the CIL Regulations call the 'statement of the representations procedure').

Mayoral CIL draft charging schedule (June 2011) PDF (opens in new window)
Mayoral CIL draft charging schedule RTF (opens in new window)

The draft schedule and consultation document were open to public consultation from 8 June to 8 July 2011, and responses to the consultation were considered by the Examination in Public.

Mayoral CIL Preliminary Draft Charging Schedule

On 17 January 2011 the Mayor launched a six week public consultation on a preliminary draft charging schedule – the first step in setting a Mayoral Community Infrastructure Levy. This consultation closed in March 2011.

The preliminary draft charging schedule consultation document:

• Explains the Crossrail project and the arrangements for its funding, including the part identified for the CIL
• Sets out the preliminary draft charging schedule, to which this consultation formally relates. This can be found on pages 17 to 24 of the document.
• Explains the development viability evidence on which the CIL proposals are based
• Describes the considerations the Mayor has taken into account in developing these proposals
• Gives some background information about the CIL and how it is set

Mayoral CIL preliminary draft charging schedule PDF (opens in new window)
Mayoral CIL preliminary draft charging schedule RTF (opens in new window)