Croydon Council have proposed a new development levy of £120 per square metre on all housing developments larger than 100 square metres, and all new constructions smaller than the average three-bedroom house outside the town centre.
A consultation on the levy will end on February 13 when council officers will assess the responses before deciding on a start date.
The new levy will replace the currently-used section 106 agreement of the Town and Country Planning Act, in which developers are made to pay towards needs generated by their plans, such as medical or leisure services.
Under the new proposals, all developers would pay a uniform amount rather than being asked to pay towards specific schemes. This would allow the council to have greater control of spending across the borough.
A spokesperson for Croydon Council said the purpose of the levy is to spread money across both inner and outer Croydon in order to fund an £114 million gap for planned new schools, libraries and leisure facilities.
Councillor Jason Perry, cabinet member for planning, told the Croydon Advertiser the change would see: “Many more developments paying for the infrastructure required to support them.”
Croydon has already secured £23 million in funding from the Mayor of London’s riot regeneration scheme that aims to transform the town centre and bring new business to the borough.