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The Mayor has formally submitted his proposals for a new London wide Community Infrastructure Levy (CIL) on development in the Capital for public examination. The public examination will be held during late 2011.

Following thorough consultation and the public examination, the Mayor intends that the levy will be payable on most new developments from April 2012.

The levy is intended to raise £300 million towards the delivery of Crossrail, which is essential to the capital's growing economy and to ensuring it remains a competitive global business centre in the 21st century. It forms part of the funding package for the project agreed between the Mayor and ministers. It is proposed to charge the Levy on most developments in London at the following rates:

  • Zone 1 boroughs - £50 per square metre (Camden, City of London, City of Westminster, Hammersmith and Fulham, Islington, Kensington and Chelsea, Richmond-upon-Thames, Wandsworth)
  • Zone 2 boroughs - £35 per square metre (Barnet, Brent, Bromley, Ealing, Greenwich, Hackney, Haringey, Harrow, Hillingdon, Hounslow, Kingston upon Thames, Lambeth, Lewisham, Merton, Redbridge, Southwark, Tower Hamlets)
  • Zone 3 boroughs - £20 per square metre (Barking and Dagenham, Bexley, Croydon, Enfield, Havering, Newham, Sutton, Waltham Forest)

    The London wide strategy will be applied in addition to the borough's individual CILs. This will have a big financial impact on development in these areas, and should be factored into the viability of any scheme coming forward. It is recommended that developers should consider the cost implications now, and try and put planning applications through, where possible, prior to the CIL being adopted. It is imperative that development appraisals / viability assessments consider the current and future charges. In a number of instances, such as the London Borough of Kingston the CIL for that area may not be adopted until the Autumn 2013.

    For further advice contact James Lacey or, another member of our planning team.