Policy 8.3 Community Infrastructure Levy
A The Mayor will work with Government and other stakeholders to ensure the effective development and implementation of the Community Infrastructure Levy (CIL).
B The Mayor will keep under review the charging schedule he approved in accordance with the Community Infrastructure Levy Regulations 2010 to enable him to use the CIL to fund Crossrail, and will bring forward further proposals should that prove appropriate.
C The Mayor will prepare guidance for boroughs and other partners setting out a clear framework for application of the CIL to ensure the costs incurred in providing the infrastructure which supports the policies in this Plan (particularly public transport – including Crossrail – see Policy 6.5) can be funded wholly or partly by those with an interest in land benefiting from the grant of planning permission.
D The Mayor will work with boroughs to ensure that priorities for the application of the CIL for strategically important infrastructure are identified through the LDF process, particularly to support development of opportunity and intensification areas.
8.15 National Government has introduced the Community Infrastructure Levy (CIL) – a charge which local authorities (including the Mayor) can levy on most types of development to help fund infrastructure needed to support the development of an area in line with local development plans. Initially at least, the Mayor will only be able to use the CIL to support transport infrastructure (including Crossrail). The process for setting a CIL is set out in the Community Infrastructure Levy Regulations 2010 (as amended), and involves two rounds of consultation and a public examination before the charging schedule – the legal document setting a CIL for an area – can be approved. The Mayor approved his charging schedule, intended to raise £300 million towards the cost of Crossrail, as required by the Crossrail funding agreement (see Policy 6.5) in February 2012, with charging starting from 1 April. In making these proposals he had regard to the potential effect on the economic viability of development across Greater London, and the potential effect on the area’s overall development. He has made clear his intention to monitor the effects of his CIL, and to conduct two-yearly formal reviews to ensure the rates and other details of his CIL remain appropriate.
8.15A The CIL is likely to play an important part in ensuring delivery of the infrastructure required to support London’s sustainable growth. The Mayor will work closely with boroughs to ensure the CIL is applied appropriately and effectively to achieve the objectives set out in this Plan and, in particular, to support optimisation of the opportunity/ intensification areas and other strategic development opportunities identified in Chapter Two.
8.16 The introduction of the CIL will affect use of planning obligations to help fund the infrastructure. Under the CIL Regulations, obligations can continue to be used to address issues specific to particular developments; limited pooling of contributions to contribute to the costs of particular projects or types of infrastructure across not more than five individual developments is also permitted. However, it is not permitted to seek contributions through planning obligations towards infrastructure which the charging authority has indicated it will use the CIL to fund. These restrictions do not apply to contributions sought under Policy 6.5, but in putting forward his proposals for a CIL (see para. 8.15), the Mayor has sought to ensure that decisions on both the CIL charging schedule and the level of section 106 contributions for Crossrail are taken in tandem. He will also take steps to ensure that CIL payments will be offset from contributions made under Policy 6.5. Planning obligations will continue to be used to fund affordable housing and non-infrastructural items, such as revenue costs of new or enhanced bus services.
8.17 The Mayor is working with boroughs and other stakeholders to ensure the CIL is introduced in London smoothly and to ensure underlying infrastructure planning is carried out effectively (particularly as regards the strategic infrastructure for which he and his functional bodies are responsible). With this in mind, he may issue further guidance in consultation with all relevant stakeholders and provide local authorities with appropriate support.