Boris Johnson to levy developers across all boroughs to raise £300 million for Crossrail
PUBLISHED: 11:45 17 January 2011
2010 Getty Images
The Mayor of London plans to levy developers in a bid to raise the £300 million his office needs to contribute to the £16 billion Crossrail project.
Although the government pledged £15.9 billion to the project which will link Heathrow to Canary Wharf, with stations at Abbey Wood and Woolwich, the mayor’s office has to pledge £300 million.
Boris Johnson’s proposals published on Monday (17) could result in a levy on new developments approved from next Spring (2012).
Mr Johnson said: “There is no underestimating how important Crossrail is to the future of this great city. Every corner of London will benefit once construction is complete and despite the current financial pressures, I am committed to ensuring London meets its fair share of the cost.
“It is right that the sector that will benefit so much should make its contribution and I am confident that this will not hinder development in the capital. However, through this important consultation I want to ensure we have heard and considered every point of view.”
City Hall estimates that every London borough, not just those on the Crossrail route, will see an annual boost to its economy ranging from £15 million to £115 million.
In the proposals the fee per square metre for Bexley is £20 and in Bromley and Greenwich it is £35, while in Camden and Westminster it would go up to £50. The Community Infrastructure Levy (CIL) will be paid by most new developments which consist of buildings that are usually used by people, has 100 square meters or more of gross internal floorspace or involves creating one dwelling even where this is below 100 square metres.
This comes a week after the chief executive of Crossrail Rob Holden announced he was stepping from the top job down as he was unable to commit until 2018 when the project is due to be finished.