“You will not get Crossrail 2 without land value capture,” he told the Independent Transport Commission’s autumn discussion. “Government has said that on a bill of £34Bn, half of that has to be in cash, raised by London, before the start of works. Frankly there is no other way it is going to happen.”

But capturing land value should not be regarded as a tax, he added. “You won’t find land owners opposed to the idea of seeing the value of buildings rise considerably”. The challenge, he explained, is to find a mechanism that allows them to contribute in a sensible way.

Steve Norris suggested that land owners who are “not cash rich on day one” do not pay anything until Crossrail 2 opens. “If you want to satisfy your contribution you do; if not, a modest rate of interest applies and it will crystallise when you sell the building. That proposition can work.”

He also said of the project: “We need to do something we have singularly failed to do in relation to (London’s) last two major rail projects: the Jubilee Line Extension and the Elizabeth Line.

“What is clear is the real gain from the Elizabeth Line will be to those who actually own buildings who benefit from increased connectivity; there is a massive gain to property owners that is directly attributable to this new piece of infrastructure.

“But what is really troubling regarding the Elizabeth Line is the two (funding) mechanisms that were used are both directed at the wrong people,” he continued. “The Mayoral Community Infrastructure Levy actually simply adds to the cost of development and increases in business rates are paid by occupiers.”

He added: “And I wish people wouldn’t call it ‘land value capture’; it has aggressive and negative connotations. If you asked: ‘Would you happily contribute several million pounds towards the gain you are going to make as a result of the value of land increasing, so you can increase rents?’ the answer is ‘of course’ – why wouldn’t you?”

Steve Norris made his comments following three presentations on capturing land value uplift by Arup planning specialist Corinne Swain, MTR Europe’s head of property John Robinson and British Land’s head of development at Canada Water in London, Roger Madelin.

(Image: TfL)