London Eye's little noticed planning clause raises 14 million for local community

"Normally, when a large project receives planning approval, the local council can seek funding from the developer to contribute to local improvements, typically in the form of transport and services. That's in part to ensure that more people moving into an area don't overwhelm local doctors, schools and transport. The London Eye was somewhat unique in that it was an unproven, and at the time, temporary entertainment venue whose success or failure was uncertain."

"However, as they would expect a bigger one-off payment - possibly as much as £3 million for a project of this size - instead, they agreed that the council would receive 1% of the ticket sales revenue and would do so in perpetuity. So instead of a decent but one-off payment, over the past 20 years, they've received over £14 million from the London Eye, which is then invested in partnership with South Bank Employers' Group and South Bank Business Improvement District."

Since opening 25 years ago, a planning clause tied to the London Eye has delivered over £14 million for local community improvements. The attraction was initially treated as an unproven, temporary venue, so the council could not secure Section 106 contributions and accepted a temporary peppercorn rent for the land. Five years after opening, long-term planning permission produced a £1.5 million payment, and planners negotiated a perpetual 1% share of ticket revenue instead of a larger one-off sum. That revenue stream has been invested with South Bank Employers' Group and the South Bank Business Improvement District. Architect Julia Barfield described the Eye as a design celebrating the Millennium and as a tool for social and environmental good.

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