Key Points
- Croydon Council is introducing a new version of the Community Infrastructure Levy (CIL) Charging Schedule for obtaining financial contributions from property developers.
- The scheme ensures necessary funding for facilities, transport, and public infrastructures to assist in continuous growth in the area.
- The existing CIL Charging Scheme was introduced in 2013 with a review which proved that increased rates would not hinder the general construction of houses.
- Changes include adjustment in payment systems in the Croydon Metropolitan Centre and the entire borough, including housing development schemes, students’ development schemes, care homes, and industrial sites.
- Private individuals developing their own houses would be exempt from the revised developer contributions.
- After conducting consultations and examinations, the schedule is to be reviewed by councils in September and October 2026.
(South London News) September 9, 2026 – Croydon Council is preparing to adopt a modernised Community Infrastructure Levy (CIL) Charging Schedule designed to adjust the financial requirements placed on commercial and residential property developers across the borough. The local authority confirmed that the revised levy serves to capture crucial developer contributions to fund essential community facilities, public infrastructure, and neighbourhood services alongside ongoing urban expansion. Executive Mayor Jason Perry emphasised that the initiative forms a key pillar of his administrative commitment to managing sustainable growth by aligning local planning developments with high-quality public amenities.
Why is Croydon Council updating its Community Infrastructure Levy?
The policy progression follows a detailed evaluation of the local planning landscape and local property market dynamics. The council’s existing CIL Charging Schedule has remained unchanged since its initial adoption in 2013. According to official council statements, an independent economic review conducted in 2024 revealed that adjusting Croydon’s CIL financial rates upward would not negatively impact housing delivery or discourage regional private development. Instead, experts determined that the modernized fee structure would secure vital additional funding for community assets, supporting sustainable neighbourhood regeneration without placing undue friction on local construction output.
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How will the new levy rates affect developers across the borough?
Under the proposed changes, the revised Charging Schedule introduces targeted levies tailored to specific geographic zones and development classes. Within the Croydon Metropolitan Centre, adjusted rates will apply directly to new residential developments, student housing accommodation, and care homes, alongside established rates already applicable to office, industrial, warehousing, and commercial space.
Across all other areas outside the metropolitan centre, the schedule establishes updated rates for student accommodation, industrial premises, warehousing, commercial offices, and care facilities. Furthermore, the revised terms increase developer contributions for major residential projects comprising ten or more units, as well as smaller-scale residential housing schemes. However, local authority policy confirms that residents who build their own individual homes will remain protected, with self-build projects maintaining an exemption from the levy changes.
What timeline exists for the formal approval of the CIL schedule?
The updated Charging Schedule represents the culmination of a multi-year statutory process involving public and professional consultation. Following a formal public consultation period held between 30 April and 11 June 2025, council officers submitted the proposals for independent examination in November 2025, leading to a public hearing in February 2026.
The approval roadmap now enters its final operational governance stages:
- 15 September 2026: Review by elected councillors at an official Scrutiny committee meeting.
- 23 September 2026: Formal consideration and evaluation by the council’s Cabinet executive.
- 21 October 2026: Final presentation before the Full Council for official adoption.
Background to the CIL Development
The Community Infrastructure Levy was introduced nationally under the Planning Act 2008 and the CIL Regulations 2010, empowering local authorities in England and Wales to raise capital from property developers undertaking build projects. Unlike Section 106 agreements, which generally address site-specific mitigation measures, CIL mechanisms provide councils with a flexible, tariff-based system to fund broader municipal infrastructure, including transport links, educational facilities, healthcare centres, and open green spaces.
Croydon Council initially introduced its baseline CIL Charging Schedule in 2013. In the intervening thirteen years, economic conditions, local property values, and municipal infrastructure pressures transformed significantly across South London. The statutory review initiated in 2024 sought to align local levy policies with contemporary real estate economics, ensuring local taxpayers do not bear the full financial burden of supporting infrastructure expansions required by new physical developments.
What are the future implications of this financial levy?
The adoption of the revised CIL schedule will directly alter the financial frameworks governing land development and municipal planning in Croydon.
Property Developers and Construction Investors
For commercial real estate developers, housing associations, and construction firms operating within South London, the revised schedule represents a structural shift in scheme viability calculations. Increased levy fees on larger housing builds (ten or more units), student housing, and commercial care facilities will require developers to factor higher up-front capital costs into land acquisition models and financial planning. However, because the 2024 independent economic assessment confirmed that the local market can absorb these adjustments, house-building targets across the borough are anticipated to remain resilient.
Local Residents and Communities
For local residents and community organisations, the update signifies increased local government investment in public amenities. As new housing developments increase local population density, the higher levy receipts collected by Croydon Council will provide direct funding for essential services, including public park maintenance, leisure facilities, road repairs, public transport improvements, and community centres. Furthermore, the explicit exemption for self-builders safeguards individual homeowners looking to build custom residences from unexpected financial burdens.
