Richmond flags concerns over CIL reduction

Richmond Council has warned that government plans to give developers up to 80 per cent relief from the Community Infrastructure Levy (CIL) could sharply reduce the money available to fund infrastructure needed for new housing.

The Council says the proposals are especially concerning because London boroughs are being asked to deliver more homes at the same time Richmond faces a nearly 60 per cent cut in core government funding, the largest percentage reduction of any London borough. Council leaders argue this is placing severe pressure on local finances.

Council leader councillor Gareth Roberts said Richmond supports appropriate development and wants new homes, thriving town centres and benefits for local communities. However, he stressed that more development increases demand on roads, parks, public spaces and other services, so developers should contribute fairly to those costs. He added that it makes little sense for government to demand more housing while also reducing the funding councils need to support growth.

Richmond says its existing CIL income is already committed to local infrastructure projects, and losing more of that revenue would undermine its ability to prepare for development. The Council is therefore calling for tighter rules on who qualifies for relief, lower discounts and stronger protections for local infrastructure funding.

Its recommendations include raising the relief threshold from £500,000 to £1 million, reducing the maximum relief from 80 per cent to 60 per cent, and limiting the highest level of relief to schemes delivering at least 35 per cent affordable housing at social rent. It also wants stronger scrutiny of viability claims and additional safeguards for developments affecting protected land.

Councillor Julia Neden-Watts said new homes must be matched by investment in the infrastructure and services that help communities thrive, especially given the scale of funding cuts facing Richmond.