Politics
Islington Referendum on Community Infrastructure Levy: Effects on Housing Supply and Service Budgets
The measure would direct new funds to affordable units and road repairs in wards such as Bunhill and Canonbury while altering costs for property transactions.
How we reported this
The Islington ballot measure on an increase to the Community Infrastructure Levy asks residents to approve a rise from 15 per cent to 20 per cent on developments above 1,000 square metres, with proceeds ring-fenced for 300 additional affordable homes and pavement upgrades by 2030.
Islington Council placed the question on the October ballot after the 2025 local government finance settlement reduced central grants by 4 per cent, leaving the authority to cover a projected £12 million gap in capital works through local sources.
Who Gains and Who Pays Under the Proposed Levy
Renters on the housing waiting list in Finsbury Park and Highbury could gain from the 300 new units the council projects the extra revenue would support, while leaseholders selling flats valued above £600,000 would pay an additional £3,000 to £8,000 at completion.
Local advocates note that small construction firms working on schemes under the threshold would continue without the higher rate, whereas larger developers active along the City Road corridor would absorb the cost or pass portions to buyers.
The 2024 Islington annual accounts record 18,400 households on the social housing register, providing the baseline the council uses to estimate how many additional tenancies the levy receipts could create each year.
Policy analysts say the change would leave existing council tax payers unaffected in the short term yet reduce pressure on the general fund that currently pays for street cleaning and library hours.
Ballot papers will be sent to all registered electors from 1 October 2026, with counting scheduled for 5 October; if approved, the higher rate applies to planning permissions granted after 1 April 2027.