Politics
Hackney Developers Face £150 Community Infrastructure Levy, Borough's Highest Rate
Developers building in Hackney will pay more toward local services than those in three other London boroughs starting in September.
How we reported this
On 7 July Hackney Council passed a resolution setting the Community Infrastructure Levy at £150 for each square metre of new residential floor space. This rate exceeds the £110 figure adopted by Camden Council and the £125 level used in Islington. The vote followed a debate on how to apply the national Planning Reform Order from March this year. The change affects all planning permissions granted after 1 September.
The national order gave councils authority to adjust levy rates without central approval. Hackney officials cited rising costs for maintaining public spaces as the reason for acting now. Other boroughs have already updated their schedules in response to the same order.
Effects on Hackney Residents
Money collected under the levy will go toward projects such as the expansion of primary school places in the London Fields ward. The council budget paper for 2026/27 allocates 35 per cent of expected levy income to education facilities. Families living near proposed development sites in Homerton may notice new classroom blocks funded by these contributions within three years. Local transport improvements form another use of the funds. The policy directs revenue to bus priority measures on the A10 corridor. This could reduce journey times for commuters traveling from Clapton to central London by an average of eight minutes according to transport modelling in the council documents.
Position Relative to Neighbouring Boroughs
Tower Hamlets set its rate at £160 per square metre while Southwark applies £95 on smaller developments. Hackney's flat rate places it between these two approaches. Policy analysts note that the variation allows each borough to match local development pressures with infrastructure needs. The new rates will apply to applications received from 1 September onward. The council will publish updated guidance for developers by the end of July. Further adjustments remain possible after the next full review scheduled for 2028.