London boroughs still ‘in dark’ over infrastructure levy

19 November 2008

London boroughs ‘remain in the dark’ over how the community infrastructure levy (CIL) will work in practice, fearing they will lose out on transport funding if the mayor collects most of the proceeds from the proposed planning charge.

Under the Government’s plans to introduce the CIL through the Planning Bill, boroughs and the mayor will be able to levy a planning charge on all new developments in London in order to fund any improvements necessary to minimise the impact on the local area.

London Councils had called on peers, ahead of a House of Lords debate last week, to ensure that boroughs kept the majority of the money raised through the CIL so local residents were not unfairly penalised.

Following the debate, it welcomed a commitment from the Government to consult on whether the boroughs should be the collection authority in London, but was left frustrated by the continuing lack of detail regarding the levy, as well as the decision to delay publication of vital regulations.

‘We remain concerned over the boundary between CIL and Section 106, as well as what proportion the mayor of London will be able to demand,’ a London Councils spokesman said. ‘We are, therefore, disappointed that the regulations which will answer most of these concerns will not now be published for consultation until spring 2009.’

London Councils’ executive member for planning, Cllr Chris Roberts, said: ‘Unless there is a cap on the amount the mayor can levy on developers, there could be some major implications for councils.

‘The proposed levy could lead to developers pulling out of much-needed regeneration schemes and community projects because of the expense of paying both the council and the mayor.’

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