Oxford City Council clears BMW Mini £800,000 levy charge

Councillor Louise Upton said the city could not risk BMW deciding to move this electric MINI line elsewhere

A council has approved a move to exempt a car manufacturer from paying a £832,421 charge.

Oxford City Council decided to clear the Community Infrastructure Levy (CIL) that BMW Mini Plant in Cowley, Oxford, would owe for a "substantial upgrade".

BMW had been granted a planning permission for a new factory which attracted the CIL.

Councillor Louise Upton said losing BMW would have "catastrophic consequences" for the city.

The decision comes days after production of the fifth generation Mini Cooper began at the plant in Cowley.

Mrs Upton, who is cabinet member for planning and healthier communities, said BMW's decision to start their new Mini production in Oxford was "very good news".

Speaking at a cabinet meeting on 13 March, she explained that the CIL had been attracted by the planning permission for "a very large bespoke factory building" that BMW had been granted.

The new factory would allow BMW to move to wholly electric car production.

The company says on its website that they were gearing up to build two of their new all-electric Mini in the Oxford plant from 2026.

It adds that by 2030, it would exclusively produce electric vehicles.

The company is investing £600m into the Cowley plant, with £75m coming from the UK government.

Mrs Upton clarified that CIL money "goes into a central pot out of which we could draw for various infrastructure projects".

She added that the manufacturer had chosen a route to an exemption to the levy which triggered the Subsidy Control Act.

"We have taken legal advice on this and both BMW and our council offices agree that this request meets those criteria," Mrs Upton said.

She added that cities "have to compete to host these factories" and said they brought jobs to the factories and the supply chains around them.

"I don't think we could risk BMW deciding to move this electric MINI line elsewhere," she said.

Mrs Upton acknowledged the large levy sum but said not granting BMW the exemption would have "absolutely catastrophic consequences" if the manufacturer decided to leave.

Councillor Susan Brown, who chaired the meeting, said the council would work with BMW who were "keen to do their part for the local economy beyond providing jobs and employment".

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