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New infrastructure levy to fund Crossrail kicks off


A new infrastructure levy to fund the completion of Crossrail comes in to force today. 

The second stage of a the Mayoral Community Infrastructure Levy (MCIL2) has today been launched by London mayor Sadiq Khan to fund the embattled infrastructure project.

The levy was originally set up to fund development of Crossrail 2, but New Civil Engineer understands that themoney will only fund Crossrail. 

Khan has before announced that he expects the second stage of the levy to raise £4.5bn from local authorities. 

London First executive director David Leam told New Civil Engineer: “The intention was that this would be money going towards Crossrail 2. However, [the cost of] Crossrail overran so money is going to be needed to pay for Crossrail for a longer period of time.”

He added: “Crossrail is a hugely important scheme for the London and South East economy which London business has committed to support through thick and thin.

”The mayor’s decision to use the MCIL2 to pay for Crossrail overruns means that business is now shouldering a greater proportion of the costs of this project, and emphasises that other sources of funding beyond business are required to help pay for future transport schemes.”

Deputy London mayor Heidi Alexander previously announced that  a proportion of the funding set aside by the first MCIL for the construction of Crossrail 2 would be used to complete Crossrail.  

The MCIL has been levied on new developments within London since 1 April 2012, with its purpose being to raise funds towards the delivery of Crossrail.

Local planning authorities in London must calculate MCIL charges and collect the payments on behalf of the mayor. The charge is calculated once a planning application is submitted to the local planning authority.

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