London First calls for Government to hold off London borough CIL for three yearsOctober 18, 2012
London First has called on the Government to suspend the introduction of the borough Community Infrastructure Levy (CIL) in London for three years.
In a letter to Eric Pickles MP, Secretary of State for Communities and Local Government, London First’s chief executive, Baroness Jo Valentine, argues that the financial viability of many redevelopments in London could be undermined by the charge for incremental development. She also points out that some local authorities are setting the CIL at rates that also render some proposed developments uneconomical.
Speaking at the opening of the first London Property Summit today, London First’s chief executive, Baroness Jo Valentine, said:
“Planning and regeneration can help drive economic recovery but the introduction of the CIL in its current form could threaten that.
“The CIL in its current structure, charging for incremental development, will damage growth – not just in the sectors directly affected, such as construction and development, but also for those businesses that need new, modern premises. Coupled with the fact that local authorities have set unrealistic CIL levels, this could make many major developments uneconomic at a time of constrained demand.
“We urge the Government not to implement in haste and then find itself repenting at leisure.”
For further information contact Paul Large 020 7665 1428
Notes to editors:
Following discussions with Government officials, some technical amendments to the original CIL Regulations 2010 have now been laid in Parliament. These deal with unforeseen consequences in the regulations that could have led to developers making repeated payments for the same developments. View the amendments.
London First is a business membership organisation whose mission is to make London the best city in the world in which to do business. London First undertakes this by mobilising the experience, expertise and enthusiasm of the private sector to develop practical solutions to the challenges facing London. London First also seeks to persuade central and London government to make the investments that London needs in its infrastructure.
London First delivers its activities with the support of the capital’s major businesses in key sectors such as finance, professional services, property, ICT, creative industries, hospitality and retail. Membership also includes all of London’s universities as well as further education colleges and NHS hospital trusts. London First members represent over a quarter of London’s GDP.