Croydon is moving forward with the first major update of its Community Infrastructure Levy in 13 years, helping to secure more developer funding for the infrastructure and community facilities needed to support growth.
The Community Infrastructure Levy, known as CIL, is paid by developers when new developments are built. The funding can be invested in the infrastructure needed alongside that growth, including transport, public spaces and community facilities.
Croydon’s existing charging schedule was adopted in 2013 and was based on evidence prepared in 2011. Although the rates have increased with inflation, the areas and types of development covered have remained largely unchanged.
As a result, some developments have made no CIL contribution at all. Residential schemes in Croydon Metropolitan Centre, for example, currently pay a nil borough rate.
Mayor Jason Perry’s administration commissioned a full review of the schedule after he was elected. The revised approach introduces charges for residential development, student accommodation and care homes in Croydon town centre. It will also update residential rates elsewhere and introduce contributions from several other types of development where the evidence shows that this is viable.
The potential benefit is significant. The Council estimates that, if a residential development equivalent in scale to Ruskin Square came forward under the revised schedule, it could generate between £9 million and £13 million in CIL funding, depending on the level of affordable housing provided.
The proposed rates have been tested through an independent viability assessment, public consultation and formal examination. The independent examiner concluded that the revised schedule would provide an appropriate basis for collecting the levy and would not threaten delivery of Croydon’s Local Plan.
Individual residents building their own home will continue to be eligible for self-build relief. Publicly funded and not-for-profit community, sport and leisure facilities will also attract a nil rate.
Jason Perry, Executive Mayor of Croydon, said:
“Regeneration must deliver for the people who already call Croydon home.
“We welcome new homes, successful businesses and responsible investment. But development also places additional demands on our roads, public spaces and community facilities. It is only fair that developers make a proper contribution towards the infrastructure that growth requires.
“When I became Mayor, Croydon was still relying on a charging schedule adopted in 2013 and based on evidence from 2011. That meant some major developments could make no borough CIL contribution at all. We are now bringing the system up to date.
“These proposals strike the right balance. They keep Croydon open for investment whilst securing a fairer contribution from development. Residents should be able to see and feel the benefits of regeneration in their own communities.”
The revised schedule will be considered by the Streets and Environment Scrutiny Sub-Committee on 15 September, followed by Cabinet on 23 September and Full Council on 21 October 2026.
The Scrutiny meeting papers are available on the Council’s website.
