Bond Street platform tunnel

Mayoral Community Infrastructure Levy

The Mayor’s current Community Infrastructure Levy (MCIL1) was introduced in 2012 to help finance Crossrail, the major new rail link that will connect central London to Reading and Heathrow in the West and Shenfield and Abbey Wood in the East.

MCIL2 will be subject to independent examination and it is intended that MCIL2 will be levied from April 2019, and will supersede MCIL1. MCIL2 will contribute to the funding of Crossrail 2. Further information on MCIL2 can be found below.

 

MCIL2

The intention is that from April 2019 MCIL2 will supersede the current Mayor’s Community Infrastructure Levy (MCIL1) and the associated planning obligation/S.106 charge scheme applicable in central London and the northern part of the Isle of Dogs. MCIL2 will be used to contribute £4.5 billion of funding for Crossrail 2.

Crossrail 2 is a proposed new railway serving London and the wider South East. It connects the National Rail networks in Surrey and Hertfordshire via a new tunnel and stations between Wimbledon, Tottenham Hale and New Southgate, linking in with London Underground, London Overground, Crossrail 1, and national and international rail services.

Like Crossrail, Crossrail 2 will address major emerging pressures on the transport network. Population and employment in London and the South East are forecast to grow strongly – by a further 20 per cent over the next 15 years. Without action to relieve crowding, boost connectivity and unlock new housing, London and the wider South East will struggle to grow sustainably in coming decades.

MCIL2 Programme

Before MCIL2 charging can commence the Mayor must carry out a minimum of two rounds of consultation on the proposed MCIL2 Charging Schedule and undertake an Examination in Public (EiP). Below is a summary of the key dates in the MCIL2 programme:

MCIL2 Key Dates:

Preliminary Draft Charging Schedule 26th June 2017 - 7th August 2017
Draft Charging Schedule - Consultation 18th December 2017 - 4th February 2018
Examination in Public 11th - 12th September 2018
MCIL2 Charging Commences* 1st April 2019

* Provisional - subject to Mayoral and Examiner approval

MCIL2 Examination in Public (EiP)

The Mayor has now undertaken two rounds of public consultation on a proposed MCIL2 Charging Schedule. The Mayor has considered the responses received and, in line with Regulation 19 of the Community Infrastructure Levy 2010 (as amended), he has submitted the Draft Charging Schedule for Examination in Public. Further details of the examination are provided on the MCIL2 EiP webpage.

In line with the requirements of Regulation 19, a copy of the Draft Charging Schedule, a summary of the responses received, copies of these representations, and the relevant evidence is available for public inspection from:

City Hall (Reception)
The Queen's Walk
London
SE1 2AA

Subject to a satisfactory examiners report, the Mayor then intends to commence levying MCIL2 charges from 1st April 2019. MCIL2 charges will supersede the current MCIL1 levies and the associated planning obligation/S.106 charge scheme applicable in central London and the northern part of the Isle of Dogs.

MCIL2 Draft Charging Schedule (DCS)

The MCIL2 DCS and its two supporting documents – the Supporting Information and the Viability Evidence Base – were open to public consultation from 18th December 2017 to 4th February 2018. These three documents can be downloaded here:

The DCS consultation attracted 43 responses, these responses can be found here:

Summary of Responses Received on the Draft Charging Schedule

Full responses on the Draft Charging Schedule

Any person or organisation that indicated in their response to the DCS that they wished to attend the Examination in Public (EiP) has the right to be heard. The Mayor has a further opportunity to make changes to the Draft Schedule and, if he does so, he has to allow a further four weeks for public consultation on these changes.

MCIL2 Preliminary Draft Charging Schedule (PDCS)

The MCIL2 PDCS and its two supporting documents – the Supporting Information and the Viability Evidence Base – were open to public consultation from 26th June 2017 to 7th August 2017. These three documents can be downloaded here:

The PDCS consultation attracted 59 responses, a summary of these responses can be found here:

Summary of Responses Received on Preliminary Draft Charging Schedule

Having considered the comments made on the PDCS, the Mayor then issued a second round of consultation on a Draft Charging Schedule (see above).

MCIL1 - Current Mayoral Community Infrastructure Levy

The Mayor’s current Community Infrastructure Levy (MCIL1) aims to raise up to £600 million to help finance Crossrail. It intends to achieve this by seeking contributions from developers for additional floorspace they create across London.

The size of the contribution is calculated once a planning application is submitted to the local authority. The figure is based on the amount of additional floorspace created, the location and how the development is to be used. MCIL is payable when work begins on the new development, and payment of large sums for major developments may be paid in instalments (see instalments policy below). In certain locations (central London, the northern part of the Isle of Dogs and around the new Crossrail stations) developments may also be liable to pay a Crossrail S.106 charge.

In March 2016 the GLA released a concise, user-friendly and up to date Crossrail Funding SPG.  It explains how the MCIL and S.106 charge are calculated and collected.

The document can be found here:

Crossrail Funding SPG updated March 2016

How MCIL1 Works

MCIL is calculated based on the net additional floorspace, measured in square metres of Gross Internal Area. Note that there are exceptions - for example floorspace for medical or education purposes are exempt, as are developments by charitable organisations, including those delivering affordable housing.

To help applicants judge the amount of MCIL they are likely to be charged, Jones Lang LaSalle have developed a CIL Calculator. Please remember that this calculator is for illustrative purposes only, it should not be relied upon for a formal assessment of liability.

Interaction with other Planning Obligations

MCIL is used specifically to fund Crossrail. It is separate to Borough Community Infrastructure Levies (CILs) which are set and implemented by each authority to raise funds for local infrastructure projects.

Developers may also be required to enter into a section 106 agreement, under which mitigation is sought to offset negative impacts caused by the development. Typical examples include the provision of affordable housing and local transport improvements. More information is available on the Government's Planning Practice Guidance site.

MCIL1 Charging Rates

The rates of the charge can be found in the table below. Please note the below MCIL rates are tied to the Royal Institute of Chartered Surveyors ‘All in Tender Price Index’, therefore will alter depending on the year planning permission is granted. For further information on the charging schedule please view the document here:

Charging schedule

Mayoral CIL charging rates

Zone

London boroughs

Rates

(£ per sq. m.)

1

Camden, City of London, City of Westminster, Hammersmith and Fulham, Islington, Kensington and Chelsea, Richmond-upon-Thames, Wandsworth

£50

2

Barnet, Brent, Bromley, Ealing, Greenwich, Hackney, Haringey, Harrow, Hillingdon, Hounslow, Kingston upon Thames, Lambeth, Lewisham, Merton, Redbridge, Southwark, Tower Hamlets

£35

3

Barking and Dagenham, Bexley, Croydon, Enfield, Havering, Newham, Sutton, Waltham Forest

£20

Use

Rate

(£ per sq.m.)

Development used wholly or mainly for the provision of any medical or health services except the use of premises attached to the residence of the consultant or practitioner

Nil

Development used wholly or mainly for the provision of education as a school or college under the Education Acts or as an institution of higher education

Nil

Regulation 123 List

The Mayor is using his CIL income to support the funding of the Crossrail schemes.

The money raised by the MCIL2 is required by law to pay for strategic transport infrastructure needed to support London’s development. The Mayor proposes to use his MCIL2 income to help meet part of the cost of the Crossrail 2 project, which is a strategic priority to support the growth and development of Greater London and lies at the heart of the draft London Plan and draft Mayor’s Transport Strategy.

MCIL1 Instalments Policy

The Mayor introduced a first CIL instalments policy, which was effective from 1 April 2013. From the 1st January 2018, a new instalments policy superseded the first instalments policy.

The new instalments policy lowered the threshold from which instalments can be applied from £500,000 to £100,000. The instalments policy is set out below:

 Mayoral CIL instalments policy

Amount of CIL liability

Number of instalment payments

Amount or proportion of CIL payable in any instalment/time at which payments are due

 

£100,000 or less

no instalments

total amount payable within 60 days of commencement of development

 

£100,001 or more

two

- the greater of £100,000 or half the value of the total amount payable within 60 days of commencement of development

- the remainder within 240 days of

CIL No Payment Procedure

The Community Infrastructure Levy is applied to most forms of development. It would be unfair for some to pay the CIL while others, who should pay, do not.

The CIL Regulations 2010 (as amended) set out the financial and penal consequences of trying to avoid paying the CIL.

The CIL no payment procedure can be found below.

CIL No Payment Procedure

Reviewing MCIL1

In adopting MCIL1 the Mayor agreed to review it every two years. Since adoption of MCIL1, two reviews have taken place in December 2014 and February 2017. These documents can be viewed here:

MCIL1 Collected to Date

The amount of MCIL1 money collected by each borough on behalf of the Mayor is recorded in line with Regulation 62 of the Community Infrastructure Levy Regulations 2010 (as amended).

The amount of money transferred to Transport for London (TfL) by each collecting authority is shown in the document below. The total sums shown in the table are after administrative fees have been applied by the collecting authorities.

MCIL Annual receipt update 2012/13 - 2017/18