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Retail and hotel developers to help pay for Crossrail?
Published: 2010-03-10 08:46:32
Developers of hotels and shops, as well as offices, should contribute to the cost of London's Crossrail project, according to a report by a panel of planning inspectors assembled by London Councils.
The Mayor of London's proposal for funding Crossrail only targets developers of offices in excess of 500sq m. But the panel's report recommends bringing other developers into the scheme.
London Councils' concern is that the existing plans could deter office developers and have a detrimental impact on new jobs and the economy.
Broadening the payment load by including shops and hotels would ease the burden on office developers. It would also, London Councils argued, be more equitable as they all stand to gain from Crossrail.
However, the panel's findings recommend that hotels and shops should pay less than offices because they have a smaller impact on overcrowding on public transport at peak times.
The panel has not specified the threshold at which retail and hotel developments would become eligible, but London Councils believes that it should be in line with the Mayor's proposal for offices.
London Councils also welcomed the panel's suggestion that the government should intervene to ensure that areas outside London that stand to benefit from Crossrail should contribute towards its costs. "It is only fair that areas outside the capital should contribute to the cost of Crossrail," said London Councils executive member for planning, councillor Chris Roberts, "as it is not just London but the South East which stands to gain an immense amount from the railway."
These, though, are no more than recommendations. The Mayor will announce the final policy on who should pay what for Crossrail over the next few weeks.