Key Points
- Croydon Council is pushing the revised CIL Charging Schedule through decisions after the statutory consultation and independent examination process.
- The revised CIL Charging Schedule proposes ending the local zero rate of CIL charged within the Croydon Metropolitan Centre since 2013.
- The proposed CIL town centre rates are £225 per square metre for development of 10 units or more, and £300 per square metre for development of nine units or less.
- A revised CIL Charging Schedule would raise about £112 million in five years and would cover the gap of £54 million in infrastructure funding.
- Croydon Council will discuss the CIL Charging Schedule at scrutiny meetings on 15 September 2026, cabinet meeting on 23 September 2026, and Full Council meeting on 21 October 2026.
Croydon Moves Proposed Developer Levy Forward for Town Centre Schemes (South London News) September 11, 2026— Croydon Council is pushing forward with an updated Community Infrastructure Levy charging schedule that seeks to introduce new town-centre rates for housing developments, potentially ending a long-standing exemption for builders operating in the heart of the borough.
As reported by LDN Editor of London Daily News, the local authority stated that the updated schedule follows a statutory consultation and an independent examination. The independent examiner concluded that the proposed levy provides an appropriate basis for collection and that the rates do not threaten the delivery of the Local Plan. However, the schedule remains pending formal scrutiny, Cabinet, and Full Council decision stages before any rates are formally adopted or brought into force.
Local reporting by Harrison Galliven of MyLondon and independent South London News details the specific charges proposed for the Croydon Metropolitan Centre. Both outlets note that the draft charging schedule outlines a proposed rate of £225 per square metre for residential developments providing 10 or more homes, and a higher proposed rate of £300 per square metre for smaller schemes consisting of nine or fewer homes.
According to those reports, these proposed charges would effectively bring an end to a local zero CIL rate that has remained in place for town-centre developments since 2013. While developers in the area have previously been exempt from paying the council’s CIL—relying instead on Section 106 agreements and the Mayor of London’s CIL—an independent assessment commissioned by the council found that strong housing growth and rising property values mean town-centre housing schemes can now viably contribute.
Harrison Galliven of MyLondon further outlines that smaller schemes of nine homes or fewer face a higher per-square-metre rate because they are exempt from statutory affordable housing requirements and are consequently deemed better able to absorb the additional cost. The revised schedule also notes that residents wishing to self-build their own individual homes will remain unaffected by the changes.
Across the wider borough, the new CIL rates will additionally be introduced for student accommodation, industrial and warehousing developments, business uses, and care homes, alongside adjustments such as cutting the proposed industrial and warehousing rate from £50 to £35 per square metre and introducing a nil rate for non-profit community, sports, and leisure facilities.
MyLondon and South London News also report council projections indicating that the updated charging schedule could generate around £112 million in residential CIL over a five-year period, which is approximately £77 million more than under the current system. Bringing the Croydon Metropolitan Centre into the CIL framework is expected to generate the bulk of this additional income, raising an estimated £69.5 million from developments previously exempt since 2013.
The council has stated that it plans to utilise this additional revenue to help tackle a £54 million infrastructure shortfall within the borough. Total infrastructure needs through to 2040 are currently estimated at £133 million, with £78 million already secured via existing external and internal revenue streams.
Announcing the progression of the schedule, Executive Mayor Jason Perry stated:
“Regeneration must deliver for the people who already call Croydon home. We welcome new homes, businesses and investment, but it is only fair that developers contribute towards the roads, public spaces and community facilities that growth requires.”
Mayor Jason Perry further added:
“These updated charges strike the right balance: keeping Croydon open for investment while securing more funding for local infrastructure. Residents should be able to see and feel the benefits of development in their own communities.”
The council has laid out a clear timetable for the procedural steps required before implementation. The schedule is scheduled for consideration by Scrutiny on 15 September 2026, by Cabinet on 23 September 2026, and by Full Council on 21 October 2026. Until these formal decision stages are successfully completed, the levy remains strictly a proposal rather than an adopted charge, meaning no new CIL rates are currently in force.
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Croydon Advances Updated Community Infrastructure Levy Charging Schedule Croydon 2026
Background of the Particular Development
The development stems from a multi-year review of local planning policies and financial mechanisms designed to support urban growth in South London. In 2013, Croydon Council instituted a zero-rate CIL for the Croydon Metropolitan Centre to encourage investment and stimulate high-density building during a period of economic recovery and sluggish town-centre regeneration. Over the subsequent decade, shifting property markets, rising land values, and an increasing demand for public services created a growing gap between municipal infrastructure requirements and available funding streams.
To address this, the local authority initiated a public consultation between 30 April and 11 June 2025 to revise its Charging Schedule. This was followed by an independent examination in November 2025 and formal hearings in February 2026. The independent examiner’s validation of the viability of higher rates cleared the path for the administration under Executive Mayor Jason Perry to bring forward structural updates, aligning town-centre commercial and residential builders with financial obligations already standard in other parts of the borough.
How This Development Can Affect the Particular Audience
For local property developers, housebuilders, and investors operating within the Croydon Metropolitan Centre, the adoption of these proposed rates would introduce significant new capital costs, ending a 13-year period of levy exemptions. While the independent examination concluded that these rates will not choke off viable development, smaller developers managing schemes of nine units or fewer face a higher rate of £300 per square metre, which could alter profit margins and prompt a reassessment of project feasibility for micro-developments.
Conversely, for Croydon residents and local communities, the implementation of the levy holds the promise of injecting vital funds into strained public infrastructure. With a projected revenue yield of £112 million over five years—earmarked to bridge a £54 million infrastructure deficit—residents could experience tangible improvements to local roads, public spaces, and community facilities as new housing projects expand across the town centre.
