North-south revolt over Crossrail levy

Boris Johnson was today urged to tear up his planned Crossrail levy so firms in north and south London pay less.

The Mayor wants to raise £3.5billion for the east-west link with a supplementary business rate of 2p on firms with a rateable value of more than £50,000.

However, businesses in boroughs which the £16billion route will not serve directly say they will be unfairly hit by the charge, which is due to be introduced in April.

Enfield and Haringey are part of the North London Strategic Alliance, a group of councils calling on Mr Johnson to introduce a two-tier levy instead. Companies in east, central and west London would still pay the 2p-in-the-pound charge but this would be halved in the south and north.

Ertan Hurer, Enfield's cabinet member for finance, said: "We are in favour of Crossrail but we would like the Mayor to have a re-think on funding. Businesses in north and south London should only face a 1p surcharge on the basis that benefits are limited."

David Williams, leader of Merton council, has also asked Mr Johnson to adopt a tiered tariff. He said: "Those boroughs gaining more from it [Crossrail] should be putting in more." Peter Pledger, chief executive of South London Business, which represents firms south of the river, said: "There is concern that the south London economy will suffer."

The Mayor's office rejected the plea. A spokesman said: "Over the next five years, ratepayers in Westminster will contribute more via the Business Rate Supplement than those in all 20 outer boroughs combined." Business group London First said far more central firms would have to pay the levy because more would hit the £50,000 threshold.

It's grossly unfair'

Max Menon
Finance director, Allders department store, Croydon

"No business in south London will benefit from this. It does not make sense. Parts of this project go to Essex and Berkshire — none of them are contributing and they are major beneficiaries. Having to pay for something that we won't benefit from is grossly unfair. It will improve transport in parts of London but will it help us?"