Crossrail may charge levy on residents near new stations

HOMEOWNERS living close to Crossrail 2 stations could be forced to help pay for the project.

Transport for London is considering a levy for the £30 billion scheme, which will run through central London from Broxbourne, Herts, to Epsom in Surrey.

The plan would create three zones of a kilometre radius around each station. Each zone would have a scaled charge, known as the Transport Property Charge, with the highest levy placed on homes closest to the stations, according to Estates Gazette.

William Jackson, a development consultant for Crossrail 2, said: “The people in those zones are going to make an increase in value on their house. If you benefit, you should pay for it.”

TFL is under pressure from the development of Crossrail, which threatens to go over budget and miss its December 2018 opening deadline. The Government last year backed the flagship project, described as critical to the capital’s growth. But residents and commercial property owners are unlikely to be impressed by the plans.

It is thought a station such as Dalston in east London could make £7.8 million a year. The money would be collected as part of council tax. Mr Jackson said lessons had been learned from the failure to profit from the £545million rise in land and property values around Crossrail stations. If successful, the transport department could replicate the idea for other infrastructure projects.

Londoners paid a levy for the 2012 Olympics – a £20 surcharge was added to the average council tax bill over several years to contribute toward the total £625million cost of the Games.

An independent financial review for Crossrail 2 is not due until the autumn.

Chris Grayling, the Transport Secretary, and Sadiq Khan, the Mayor of London, said last year that they would work together on the affordability of the project.