■ Raising the funds will require innovative approaches. The strength of the London property market and its acute housing crisis is supporting arguments for fiscal devolution to large cities. Retaining property revenue streams such as stamp duty, land tax and business rates could make a significant difference to London. Last year London provided 42% of the total £6.5 billion receipts from Stamp Duty Land Tax. Reform would result in a shift away from ad hoc financing for specific projects and provide sustained investment for a full range of future infrastructure.
■ London Mayoral CIL (Community Infrastructure Levy) has contributed 94% of the total £57 million raised by the tax to date (see CIL – Is It Delivering?). The success of the London scheme is largely the result of its uniquely straightforward approach to CIL in which London’s 32 boroughs are charged one of three flat rates (£20, £35 or £50 per sq. m). This has allowed the burden of infrastructure to be spread across all development. Yet despite its success, it is anticipated to provide only 2% of the funding required for Crossrail.
■ Integrating infrastructure delivery is key. Although this report did not have the scope to cover the full range of infrastructure improvements listed in the Mayor’s first ever strategic infrastructure plan, it is essential that plans for more new homes go hand-in-hand with improvements to the city’s utilities, sewerage, drainage, waste disposal, recycling and flood defences.
■ The airport extension debate remains one of the UK’s most significant and contentious infrastructure issues. The current system cannot keep pace with the level of aviation demand, which is set to grow. Heathrow has been running at 98.5% capacity for over a decade due to its physical constraints on growth. Gatwick, Luton and London City are all forecast to be full by 2030. After the Airports Commission rejected The Mayor’s four runway Thames estuary proposal in September this year, three options remain: a 3,500 metre third runway at Heathrow, lengthening one of the existing runways and a second runway at Gatwick.
■ Regional powerhouses beyond London: One of the effects of the Scottish Independence referendum was to instigate debate about regional devolution throughout the rest of the country. As the election approaches, George Osborne talks of plans for a “northern powerhouse”, Ed Miliband promises to create “regional economic powerhouses” and Nick Clegg has outlined his vision for greater decentralisation in the “Northern Futures” project. Many of these ideas are based around the “One North” plan, developed by key northern cities to boost transport links between key centres and maximise economic growth. We are expecting to hear more about the Coalition Government’s plans for this in the Autumn Statement.
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