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Policy T9 Funding transport infrastructure through planning

T9

  1. The Mayor will charge the Mayoral Community Infrastructure Levy (MCIL) to secure funding towards transport infrastructure of strategic importance such as Crossrail 2, and potentially other strategic transport infrastructure.
  2. In consultation with the Mayor, boroughs should identify a package of other strategically-important transport infrastructure, as well as improvements to public realm, along with other funding streams to deliver them.
  3. Planning obligations (Section 106 agreements), including financial contributions, will be sought to mitigate impacts from development, which may be cumulative. Such obligations and contributions may include the provision of new and improved public transport services, capacity and infrastructure, the expansion of the London-wide cycle networks and supporting infrastructure, and making streets pleasant environments for walking and socialising, in line with the Healthy Streets Approach.

Use of MCIL is restricted by Regulation to funding strategic transport infrastructure in London. The Mayor’s first MCIL (MCIL1) was introduced in 2012 to contribute to Crossrail 1 (the Elizabeth Line) funding, and was designed as a single rate community infrastructure levy for each London borough, covering all development other than education and health. Running alongside MCIL1 was a Section 106 contributions scheme which applied to office, retail and hotel developments in central London, the northern part of the Isle of Dogs and around Crossrail 1 stations. In June 2017, the Mayor published proposals for an MCIL2 to contribute to Crossrail 2 funding[146]. This would be levied from April 2019, and would replace both MCIL1 and the Crossrail 1 Section 106 contributions scheme.

[146] https://www.london.gov.uk/what-we-do/planning/implementing-london-plan/m...

Negotiations on the Crossrail 2 scheme are still underway and there is no agreed funding package at present. However, MCIL2 does need to be brought forward now to avoid a charging gap at the end of Crossrail 1 construction and to allow for early funding of the Crossrail 2 scheme. Should no funding deal be achievable, the Mayor will apply the MCIL2 proceeds to fund other strategic transport projects for which there is a significant funding gap.

Other transport infrastructure and improvements to public realm will be necessary to support London’s growth. Through Development Plans, boroughs should work with the Mayor to identify current and future requirements and funding streams for transport infrastructure and other measures which support growth and create a high-quality public realm in line with the Healthy Streets Approach.

As part of individual development proposals, comprehensive assessment should both inform appropriate levels of mitigation and highlight opportunities for improvements. In some instances, this may include securing planning obligations and the development and implementation of strategies to improve public realm.

Alongside the development of income streams described above and maximisation of funding that they could generate, the Mayor will work with strategic partners to investigate new mechanisms to support the funding of new and improved transport services and infrastructure.