Policy 6.5

Policy

Strategic, Planning decisions and LDF preparation

A  In view of the strategic regional importance of Crossrail to London’s economic regeneration and development, and in order to bring the project to fruition in a suitably timely and economic manner, contributions will be sought from developments likely to add to, or create, congestion on London’s rail network that Crossrail is intended to mitigate. This will be through planning obligations, arrangements for the use of which will be established at strategic level, in accordance with relevant legislation and policy guidance.

B  The Mayor will provide guidance for boroughs and other partners for the negotiation of planning obligations requiring, where appropriate, developers to contribute towards the costs of funding Crossrail having regard to:

a  the requirement for contributions from development of up to £600 million under the arrangements for funding Crossrail agreed with Government

b  central Government policy and guidance

c  strategic and local considerations

d  the impacts of different types of development in particular locations in contributing to transport needs, and

e  economic viability of each development concerned.

C  In addition, the Mayor has produced guidance on the Use of Planning Obligations in the Funding of Crossrail[1] which should be taken into account in the handling of planning applications. The guidance includes:

a  criteria for identifying developments in respect of which Crossrail contributions should be required in accordance with national policy guidance

b  standard charges and formulae for calculating fair and reasonable contributions to be sought and guidance on how these should be applied in specific localities and different kinds of development

c  the period over which contributions will be sought and arrangements for periodic review

D  The Mayor will, when considering relevant planning applications of potential strategic importance, take account of the existence and content of planning obligations supporting the funding of Crossrail among other material planning considerations.

E  In consultation with the Mayor boroughs should identify strategically important transport infrastructure that is suitable for funding through the Community Infrastructure Levy (see Chapter 8).

[1] Use of Planning Obligations in the Funding of Crossrail and the Mayoral Community Infrastructure Levy (April 2012) Mayor of London.

Supporting text

6.21  Crossrail is essential to delivery of the strategic objectives of this Plan. Demand for public transport into and within central London is nearing capacity, with crowding on Network Rail services and on London Underground routes towards the West End, the City and Isle of Dogs. The employment growth expected over the period covered by this Plan will further increase demand.  Unless this is addressed, continued development and employment growth in central and eastern London will be threatened. In particular, Crossrail is critical to supporting the growth of the financial and business services sectors in central London and in the Isle of Dogs, where there is market demand for additional development capacity. It will also provide much-needed additional transport capacity to the West End, where it will support the future development of that area as London’s premier retail and leisure location. The scheme will also improve links to Heathrow, thereby supporting connections for London’s global businesses. By linking these areas, Crossrail will help reinforce the development of London’s economic and business core. It is also crucial to the realisation of regeneration and intensification opportunities around key interchanges within the Central Activities Zone and to its east and west. Crossrail will make a vital contribution to improving the accessibility and attractiveness of the Thames Gateway to the east of the Isle of Dogs, through its cross-river link to south-east London and connection with the DLR network. It is expected that Crossrail will be fully operational by 2019.

6.22  It will be important that other public investment is co-ordinated to maximise these benefits. To this end, the GLA Group is seeking to identify and prioritise potential interventions that would give further regeneration benefits to the areas around key Crossrail stations.

6.23  Given the strategic regional importance of Crossrail, and that the funding arrangements for the scheme announced by Government makes clear that it will not proceed without contributions from developers, the use of planning obligations to secure resources to support funding Crossrail from developments that give rise to additional demand for public transport that Crossrail will help address is appropriate in terms of Government guidance and other policies in this Plan. The funding agreement for Crossrail between the Mayor, Transport for London and the Government envisages that a total of £600 million might be raised towards the cost of the project from developers, as follows:

  • £300 million from use of planning obligations or any similar system that might replace them; and
  • £300 million from the Community Infrastructure Levy (see Chapter 8).

6.24  Policy 6.5 relates to the first of these sums. The Mayor has brought forward supplementary planning guidance setting out detailed advice about the principles to be applied to this end, including timing and phasing, pooling arrangements, formulae to fix ‘indicative contribution levels’ and how they will be applied In specific localities and to particular kinds of development. This guidance takes appropriate account of relevant legislation and policy guidance.

6.25  Contributions will be sought in respect of developments in central London, the northern part of the Isle of Dogs and around Crossrail stations (the extent of the relevant areas are set out in the supplementary guidance) which include an increase in the amount of office, retail and hotel floorspace. They will also be sought from developments in the rest of London where this is appropriate under Government guidance, policies in this Plan and in local development frameworks. This approach has been taken in order to ensure contributions are sought from the uses that make the most significant contribution to congestion on the rail network. Any changes by the Mayor to the indicative levels of contribution would be made through new supplementary guidance, and this would be the subject of full consultation. Any new figure would be set to take account of the effect it might have on the viability of development, through considering development benchmarks set in this Plan (in Policy 4.2, with regard to offices for example) and associated guidance. The selected approach will ensure that contributions are sought only from developments which create, or add to, congestion on London’s rail network.

6.27  There will be other transport infrastructure necessary to support the sustainable development of strategically important parts of London, particularly to enable the maximum contribution towards delivery of the strategy and policies in this Plan. One example is a proposal for the extension of the Northern Line to serve the Battersea area. This would be needed to realise the full potential of the Vauxhall, Nine Elms and Battersea Opportunity Area, delivering 20,000 new homes, 25,000 jobs and regeneration of Battersea Power Station. Boroughs should work with the Mayor to identify strategically important infrastructure of this kind, particularly through the LDF process, and to develop appropriate proposals for use of the Community Infrastructure Levy (see Chapter 8) to contribute towards its cost.

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