Crossrail Development Levy Faces Inquiry

The Mayor of London Boris Johnson's proposals to secure contributions from developers towards the cost of Crossrail were restated at a public examination, which has opened at City Hall.

Crossrail, the capital's first new major railway in a generation, will employ some 14,000 people at its peak, providing a crucial boost to London and the UK's economy. It is anticipated that over 200 million passengers will use Crossrail in the first year of operation and main construction works begin in 2010.

Following initial consultation with the London Assembly, the Mayor published proposed draft alterations to the London Plan and supporting guidance in May this year. The proposals sought to introduce new policies to use planning obligations to secure financial contributions towards Crossrail through the planning system. Office developments in central London, the north of the Isle of Dogs and areas near new Crossrail stations outside central London would pay the contribution.


The Mayor then published amended draft planning guidance on Crossrail in October, which included measures to boost development in London by providing an incentive for work to start on new schemes. The guidance proposed a 20 per cent discount on the Crossrail levy for those office developments that are granted planning permission and start work during the three-year period after the new policy is formally published in Summer 2010.

Mr Johnson said: "Crossrail is vital if London is to remain on course for prosperity throughout this century and beyond.

"The benefits of the improved links across the capital include the easing of congestion on the existing transport network and the creation of many thousands of jobs. While Crossrail will make a substantial contribution to the whole UK economy, London will benefit most and therefore it is right that we pay our fair share of the costs. In particular, it is fair that developers whose buildings will add to congestion should contribute towards this project, which will make the largest dent on the problem.

"This examination is an important milestone in the journey to an even greater London. I thank the Panel in advance for its time considering these proposals which are crucial to the continued success and international competitiveness of the capital," he said.

(CD/BMcC)