Greenwich see substantial increase in revenue from new developments

Greenwich Council have seen a substantial jump in revenue related to new developments in the borough according to a new report.

After languishing around the bottom for all London borough’s for some years, revenue from the Community Infrastructure Levy increased to £7,358,927 last year as seen in a report before the council’s cabinet this week.

In other welcome news Greenwich have started to issue information that was common for most other London borough reports but long excluded, including how many Demand Notices were issued to developers for payment.

Funding from CIL is a key source of revenue for many councils across the country during and time of cuts and an issue where Greenwich have long struggled.

They adopted low rates for development in 2015 despite a Viability Report stating higher totals were possible in prime parts of the borough. They also promised to look into revising rates in 2018. Despite income shortfalls quickly becoming evident that never happened which has seen potential revenue lost.

One of the biggest sources of revenue in the last financial year was from Kidbrooke Village. Back when it became clear Greenwich was obtaining far less income than almost all other London councils one excuse given by council officers was that major developments such as Kidbrooke Village was approved before 2015 and only Section 106 was applicable.

That ignored that many revisions had been made since 2015 which were liable for Community Infrastructure Levy payment – and that has now appeared in figures.

Woolwich Elizabeth line

The borough’s charge for Woolwich Elizabeth line station has also been fully paid off.

If higher levels were adopted in 2015 at prime areas of the borough – as was possible under the Viability Report drawn up in 2014 – then the Crossrail bill would have been paid off sometime before it eventually was enabling additional funding across the borough. If Greenwich had revised rates in 2018 as promised then too more funding would have been available.

Those mistakes cost big, but in the past year newly revised rates were finally implemented. It should be noted that the recent increased total predates that change.

The recent review however didn’t increase rates for student housing which is a major area of growth. It also set a low level for co-living units which is another major growth area.

That’s quite unusual, with many councils including co-living within the same level as general residential rates or even putting it at a higher level.

How much that will cost the borough in revenue – as low levels in 2015 and a failure to revise in 2018 did – remains to be seen.

Local element

By law a minimum of 15 per cent of the Borough element of Community Infrastructure Levy revenue must be spent on local projects. In Greenwich this has been branded as the “Neighbourhood Growth Fund“.

A wide range of local projects have benefitted from funding and greater income will only see that increase to the benefits of many residents.

After 4 per cent is retained for administration, 81 per cent of revenue goes into the strategic pot. Across London (and beyond) we’ve seen this go towards areas such as substantial park upgrades, youth centres, transport projects, health centres, libraries and much more.

I’m sure all readers can think of areas that will benefit from the recent uplift in Greenwich.

Let’s hope officers and councillors are on the ball in getting funding spent to benefit various areas across the borough. Still, things are finally looking up after many squandered years under previous leadership.

 

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