London mayor Sir Sadiq Khan confirmed earlier this year that developers would be granted relief from the levy

COUNCILLORS have warned that a million pounds could be lost in some areas of the borough as a row over a government decision to cut the charge levied on major developers continues.

The Community Infrastructure Levy (CIL) is paid to the council for large developments in order to support other community projects in the borough.

London mayor Sir Sadiq Khan confirmed earlier this year that developers would be granted relief from the levy in an effort to kick-start projects, but councillors say they are only now understanding how much money their areas will lose out on.

Councillor Sheridan Kates, Green deputy leader who represents Tufnell Park, said that her ward would see a funding cut of £1million, money which had been expected to be generated by the Holloway Park development.

“It’s wild,” said Cllr Kates. “We’re now at the mercy of working out what will happen when this comes into effect. It’s another demonstration of how broken the developer-led model is. This allows them to be less ambitious. In Tufnell Park, this money could be spent on playgrounds, community centre, green spaces. There’s such huge pressure on funds that CIL is needed even to do day-to-day projects.”

Santiago Bell-Bradford, then deputy Labour leader, told the Tribune last year that the council would “get no CIL no matter what happens to developments” over the next few years due to “the nature of development cycles”.

Cllr Jason Jackson, the Town Hall’s housing chief, did not respond to request for comment.