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.

On 26 June 2017 the Mayor published for public consultation the Preliminary Draft Charging Schedule (PDCS) for an MCIL2. It is intended that MCIL2 will be levied from April 2019, and will supersede MCIL1. MCIL2 will contribute to the funding of Crossrail 2.

Public consultation on MCIL2 PDCS 26 June to 7 August 2017

On 26 June 2017 the Mayor published for public consultation the Mayor of London Community Infrastructure Levy 2 Preliminary Draft Charging Schedule (MCIL2 PDCS). 

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. MCIL1 and the S.106 scheme are being used to contribute to funding for Crossrail. MCIL2 will be used to contribute to 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.

The MCIL2 PDCS and its two supporting documents – the Supporting Information and the Viability Evidence Base – are open to public consultation from 26 June to 7 August 2017. You can download these three documents here:

The PDCS consultation attracted 59 responses. They will be available to view soon.

Second Round Consultation on MCIL 2 Draft Charging Schedule

The MCIL2 DCS and its two supporting documents – the Supporting Information and the Viability Evidence Base – are open to public consultation from 18 December to 4 February. You can download these three documents here.

We welcome your comments. Please respond by Sunday 4 February 2018, referencing your comments to the relevant section of the MCIL2 DCS or its supporting documents.

  • by email to [email protected] with ‘MCIL2 PDCS’ in the email subject title. If you send in a response by email it is not necessary to also send us a hard copy.
  • or by post (no stamp required) to:

             MCIL2 Preliminary Draft Charging Schedule

             FREEPOST LON15799

             GLA City Hall post point 18

             The Queen’s Walk

             London SE1 2BR

Please note that all responses will be made available for public inspection.

 

MCIL2 – what happens next?

The Mayor must carry out two rounds of public consultation on a proposed CIL Charging Schedule:

The MCIL2 Preliminary Draft Charging Schedule was out for public consultation in the summer of 2017. Having considered the comments made on the preliminary draft, the Mayor has issued a second round of consultation on a Draft Charging Schedule for a period of at least four weeks. Any person or organisation that makes comments at this stage will have the right to be heard at the CIL public examination. (The Mayor then 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).

Following this consultation, the Mayor will appoint an independent examiner to conduct an Examination in Public (EiP) into the Draft Charging Schedule.

The Mayor intends to consult on the MCIL2 Draft Charging Schedule later in 2017, and to hold an MCIL2 EiP in 2018. This may form part of the EiP to be held into the Mayor’s new London Plan, also to be held in 2018.

The Mayor intends to commence levying MCIL2 charges from 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.

What is the Mayor’s current Community Infrastructure Levy, MCIL1?

The Mayor’s current Community Infrastructure Levy (MCIL1) aims to raise up to £600 million to help finance the Crossrail project. 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 floorspace created, the location and how the development is to be used. The MCIL is payable when work begins on the new development, although payment of large sums for major developments may be paid in phases.

In certain locations (central London, the northern part of the Isle of Dogs and around the new Crossrail stations) developments may also be liable for a planning obligation/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.  It builds on the April 2013 SPG (Use of planning obligations in the funding of Crossrail, and the Mayoral Community Infrastructure Levy) and reflects changes to the national CIL Regulations.  It also charts progress to date in securing funding from the Crossrail S.106 and MCIL mechanisms and gives advance notice of proposed arrangements for dealing with likely changes to MCIL and Crossrail S.106 liability from April 2019.

Details and further guidance can be found below.

Crossrail Funding SPG updated March 2016

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

How does it work?

The 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.

How does it affect other infrastructure levies and contributions?

The MCIL is used specifically to fund Crossrail. It is separate to other borough community infrastructure levies (CILs) that 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 at the Government's Planning Practice Guidance site.

How much does MCIL1 cost?

The rates of the charge can be found in the table below. For more information see the charging schedule below. 

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

Instalments policy

The Mayor introduced a CIL instalments policy, which became effective from 1 April 2013.

For developments where the contribution to the CIL is £50 - £500,000, the amount should be paid in full no more than 60 days after development has begun.

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

  1. £500,000 or half of the amount owed – whichever of these two is the greater amount – to be paid 60 days after development has begun
  2. The remainder 240 days after development has begun.

From the 1st January 2018, a new instalments policy will apply, lowering the threshold from which instalments can be applied from £500,000 to £100,000. The instalments policy can be found below.

Instalments policy

Reviewing MCIL1

The level of the MCIL was agreed following an Examination in Public in February 2012.

In adopting MCIL1 the Mayor agreed to review it every two years. Details of the latest review, published February 2017, and the previous review can be found below.

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

How much has been raised so far by MCIL1?

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 CIL transferred to Transport for London (TfL) by borough is shown in the document below. This includes the amount taken in administrative fees by the boroughs and by TfL

MCIL Annual receipt update 2012/13 - 2016/17