Under the proposals, boroughs will have the option of introducing a Community Infrastructure Levy (CIL) - a charge that can be levied on developers to get them to pay for new improvements to a local area to help off-set the impact of a development on the community.
The levy could be used to pay for local infrastructure improvements, such as improved cycling links, or new community facilities such as sports centres.
However, the Mayor of London will also be able to collect an extra CIL on top of the local borough levy to pay for strategic transport improvements such as Crossrail.
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The level at which the Mayor sets his element of CIL will affect how much a local borough can reasonably charge a developer for community improvements. If the Mayor's element is set too high, local communities could miss out on much-needed facilities.
Under current proposals, the Mayor will not have to take the needs of boroughs into consideration when setting the levels for his part of the levy.
London Councils is a keen supporter of Crossrail but wants to develop a way forward where the Mayor and individual boroughs can work together to provide Londoners with the maximum benefit from CIL.
The organisation has suggested that each individual borough should be allowed to set their local CIL at a level appropriate to the needs of their community. Once this is set, the Mayor should tailor his own element of the levy to be viable in each borough - taking account of both local and strategic needs.
London Councils' Executive Member for Planning, Councillor Chris Roberts said: "Boroughs must not lose out financially as a result of having to collect the Mayor's CIL and we urge the Mayor to work with alongside them to ensure the maximum benefit for all Londoners."
(CD/KMcA)
