Richmond Council is warning Government plans to give developers up to 80 per cent relief from the Community Infrastructure Levy (CIL) could "leave the borough with significantly less money to invest in the infrastructure needed to support new development".

The proposals come as councils across London are being asked to deliver more homes, while Richmond faces a nearly 60 per cent cut to its core Government funding – the biggest percentage reduction of any London borough – putting unprecedented pressure on the Council's finances.

Council leader Councillor Gareth Roberts said: "We want to see the right development in Richmond. We want more homes and we want our town centres and communities to benefit from that growth.

"But development comes with a price tag. More homes mean more pressure on our roads, parks, public spaces and other infrastructure, and developers should make a fair contribution towards dealing with that impact.

"What makes no sense is the Government telling councils to deliver more housing while taking away the money needed to support that growth.

"Richmond is already being hit with the biggest percentage cut in core Government funding of any London borough. The last thing we need is another hit to a funding stream which helps us invest in our communities.

"The reality is Richmond's CIL funding is already committed and being brought forward for investment in local infrastructure projects.

"If the Government wants councils to deliver growth, it needs to give us the means to ensure local communities see the benefits."

The Community Infrastructure Levy is money paid by developers towards the infrastructure needed to support new development.

Richmond Council said it "is calling for tighter eligibility for the proposed relief, lower maximum discounts and stronger safeguards to ensure development continues to support local infrastructure."

It said it wants the threshold for relief increased from £500,000 to £1 million, reducing the number of developments that qualify, and the maximum relief cut from 80 per cent to 60 per cent.

The council also argues that the "highest level of relief should be reserved only for developments providing at least 35 per cent affordable housing at social rent, alongside stronger council powers to scrutinise viability information and greater safeguards around development involving protected land".

Councillor Julia Neden-Watts, chair of the council's environment, sustainability, culture and sports committee, said: "There is a simple principle here: if you build more homes, you need to invest in the infrastructure those homes require.

"We want to see more homes delivered in the borough, but that must go hand in hand with investment in the parks, public spaces and local services that help ensure communities thrive.

"Development must make a fair contribution to that, especially when the Government has cut Richmond's funding to the bone."