Mayor of London Sadiq Khan has published a consultation on the mayoral Community Infrastructure Levy, which will help fund Crossrail 2.
Office developments in central London and the Isle of Dogs would face a charge of £185 per sq m from March 2019 under the proposals.
Retail space would be charged £165 per sq m, while the hotel rate would be £140 per sq m.
Known as MCIL2, the new levy is intended to supersede MCIL1, which was introduced in 2012 to help finance Crossrail.
It is intended MCIL2 will be levied from April 2019.
The consultation also proposes that a Crossrail section 106 policy, which currently applies to new office developments above a 5,000 sq ft threshold within London’s Central Activities Zone and northern Isle of Dogs, is scrapped.
Instead, office, retail and hotel developments in central London and the Isle of Dogs would be required to pay an increased level of CIL from 2019.
MCIL1 is intended to raise £600m towards the cost of the Crossrail project, with £300m coming from the CIL and £300m from the mayoral section 106.
As with MCIL1, MCIL2 would be split into three charging bands, ranging from £25 per sq m to £80 per sq m.
Under the proposals, the councils in the existing levy’s highest value band − Camden, City of London, City of Westminster, Hammersmith and Fulham, Islington, Kensington and Chelsea, Richmond-upon-Thames and Wandsworth − would remain in the highest value band for MCIL2.
Waltham Forest and Enfield, currently in the lowest value band for the existing Crossrail levy, would join the middle value band for MCIL2, while Greenwich would drop from the middle value band to the lowest value band.
No funding package has yet been agreed for the Crossrail 2 project. However, the consultation states that MCIL2 would need to be brought forward regardless to “fund other strategic transport projects for which there is a significant funding gap”.
A spokesperson for the mayor of London, said: “Money collected through this levy from April 2019 will help to deliver Crossrail 2, which will transform journey times and connectivity across London and the wider South East, and support some 200,000 new homes and 200,000 jobs along the line of the route.
“The mayor continues to make the case to government that Crossrail 2 is crucial to unlocking future economic growth and crucial to ensuring the capital’s transport system does not grind to a halt.”
The consultation runs until 7 August 2017.
To send feedback, e-mail Louisa.Clarence-Smith@egi.co.uk or tweet @LouisaClarence or @estatesgazette
