Mayor’s Crossrail Levy to apply to planning permissions granted in London from 1 April


Author: Mark Harnett


In 2008, the Government introduced new legislation which gave local authorities the power to charge a new levy on developments in their area. The money that is raised by the levy can be used to fund local infrastructure. Most local authorities are preparing to introduce a levy and a few local authorities already have a levy in place. In London, the Mayor also has a power to introduce a levy which will be charged in addition to any levy that is imposed by the relevant local authority.

The attached briefing note from the Mayor of London confirms that a levy which will be used to fund Crossrail will be charged in relation to developments in London that receive planning permission from 1 April. As is evident from the communication, virtually all development in London which receives planning permission after the end of this month will be subject to the levy although different rates will apply depending upon which part of London the development is located in. The charge will apply even if the planning application in question was submitted prior to the end of the month.

Anyone who has a planning application which is currently being considered by a local authority in London should therefore try to ensure, if possible, that permission is granted prior to the end of this month in order to avoid having to pay the levy.

For further information, please contact Fladgate planning partner Mark Harnett (mharnett@fladgate.com

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