Permitted Development, Commercial Space and Business Rate Retention

Meeting: 
MQT on 2016-06-22
Session date: 
June 22, 2016
Reference: 
2016/2192
Question By: 
Nicky Gavron
Organisation: 
Labour Group
Asked Of: 
The Mayor

Question

Has the Mayor assessed the impact of the loss of commercial space under the relaxation of permitted development rights on borough finances, given the introduction of business rate retention?

Answer

Answer for Permitted Development, Commercial Space and Business Rate Retention

Answer for Permitted Development, Commercial Space and Business Rate Retention

Answered By: 
The Mayor

The GLA's latest monitoring figures show that since 2013, over 1.47 million square metres of office space could potentially be converted into residential units in London using the Government's permitted development rights (PDR). The impact varies across the London boroughs and has been particularly strong in outer London where, on average, almost a fifth of the office stock could be lost. For some boroughs, including Brent, Sutton, Harrow, Richmond and Croydon, more than a quarter of the office stock could be affected.

The GLA monitors business rates income closely through the returns it receives from the 32 boroughs and the Corporation of London. The GLA is also funding a number of borough led projects which seek to maximise business rates income across the capital.

I will work with the boroughs and London Councils to explore the implications of permitted development rights including potential impacts on business rate income.