Agenda item

Members’ views were requested on the draft consultation document and charging schedule issued by the Mayor of London as an initial step to setting up a London-wide Community Infrastructure Levy, under powers set out in Part 11 of the Planning Act 2008 and the Community Infrastructure Levy Regulations 2010.  Money raised would go towards London's share of the Crossrail funding package agreed with Government.  London Boroughs were asked to respond with their views by 1^st March 2011. 

The report was initially considered by Members of the Executive at a meeting held on 2 February 2011.  Members had made a provisional decision but requested an extension of time to allow for full and meaningful discussions.  A copy of the Minute was circulated at the meeting. 

Paragraph 3.2 of the report set out three zones in which London boroughs had been placed, together with the rate payable for each zone. 

Although in principle, the Chairman was in favour of Crossrail, she was concerned that charges to Boroughs should be proportionate to the level of benefit gained by each.  As Bromley was least likely to benefit from Crossrail, members were surprised to note that it had been banded in zone 2 with a levy of £35 per square metre whereas Bexley (which would benefit more from Crossrail as it would reach its Borough boundary) had been banded in Zone 3 at £20 per square metre.

Councillor Charles Joel was against the proposed levy and alluded to the consortium set up when the Channel Tunnel was developed. Councillor Joel suggested that the Crossrail development should follow the same route.

Councillor Russell Mellor was bemused by the levying of charges for Crossrail as he was led to understand that funds were already in place.  Councillor Mellor suggested that the Mayor's reasons for the charges be sought.

Councillor Nicholas Bennett J.P. stated that the proposal amounted to extra taxes on developments within the Borough.  Councillor William Harmer agreed, commenting that development should be encouraged not deterred.

Councillor Nicholas Bennett J.P. also commented that Crossrail would not bring any benefits to Bromley and could, in fact, take business away from the Borough. 

A map of the Crossrail route was circulated to Members (attached as Appendix 2) and it was noted that Crossrail did not reach South London at all.

It was estimated that a total sum of £46m could be collected by 2026.

The Chief Planner explained that banding was based on house price values within each zone and used as the basis for measuring a fair charge. 

RESOLVED that:-

1)  the Council write to the Mayor of London highlighting the disproportionate charge levied to boroughs, against the projected benefits of Crossrail to each.  The zonal banding structure should be revised so that it properly reflects the benefits to be gained by the London Boroughs.  The Mayor’s attention should be drawn to the Fares Fair Judgement 1982;

2)  it be noted that the introduction of CIL would take benefits away from Bromley

3)  the comments and recommendations outlined above be referred to Members of the Executive.