Agenda item

The Annual Infrastructure Funding Statement (2023-2024) and Section 106 Update (as of November 2024) was presented by the Cabinet Member for Planning.

The report clarified that planning objections were to be legal agreements between developers and Local Authorities, used to mitigate the impacts of a proposed development where it was not possible to do so by condition. Regulation 122 of the Community Infrastructure Levy Regulations (2010) set out three legal tests that must be complied with when entering a planning obligation. Essentially, any obligation must be:

·       Necessary to make the development acceptable in planning terms,

·       Directly related to the development,

·       Fairly and reasonably related in scale and kind to the development.

The NPPF reiterated these tests and confirmed planning obligations should only be used where it was not possible to address unacceptable impacts through conditions.

The report confirmed the commencement of an Infrastructure Delivery Officer (IDO) in 2023-24. This role involved monitoring and recording obligations, liaising with stakeholders, and robustly monitoring all receipts and expenditure of contributions.

Planning obligations were also pivotal in the provision of affordable housing, with the Infrastructure Funding Statement confirming that, in 2023/24, a closing balance of £2,167,647.24 was spent on the provision of affordable dwellings.

At the time of the report’s publication, SKDC’s Local Plan was undergoing a review with a draft plan anticipated to be submitted for examination in the Summer of 2025. In the meantime, up-to-date evidence and information could be used to justify planning obligations and this was to be carried out on a case-by-case basis.

During discussions, Members commented on the following:

-       The process for which Section 106 funding from development schemes could be used on local infrastructure. An example was given of Section 106 funding from the Poplar Farm Scheme being used to enhance the local leisure centre within the vicinity of the development. Addressing the specific example given, the Assistant Director of Planning confirmed that the next stage of the Poplar Farm development was to include sports pitches. To address the wider question, the Assistant Director of Planning confirmed that Section 106 funds cannot be diverted after the declaration of their initial use. If the initial use were to be declared for an institution such as a leisure centre, then this would have to be to increase the capacity.

-       The process for dealing with remaining or disused Section 106 funds. It was confirmed that these funds had to be returned were they not required.

-       A Member noted their view that some developers were retrospectively submitting Section 73 requests to attempt to mitigate prior agreements and conditions under Section 106. The Assistant Director of Planning confirmed that any Section 73 requests received were robustly investigated by an independent third-party. However, they were satisfied that with the work being carried out by Planning Officers to liaise with stakeholders to ensure relevant mitigations.

-       Given the impact of developments upon those residents living in the immediate vicinity, it was the view of several Members that Town Council’s should be involved in the process.

-       A Member suggested codifying a wish list of Section 106 agreements within the Local Plan or relevant Neighbourhood Plans. It was the view of the Assistant Director of Planning that this wish list should be a living document rather than being codified. It was noted that SKDC’s Supplementary Planning Document was also to be updated following the adoption of the upcoming Local Plan.

-       The term ‘health services’ was queried within the context of the report. This was confirmed to be any NHS services.

-       Clarification was sought about protectionary measures against inflation for Section 106 funding. It was confirmed that there were indexation clauses within the funding agreement, usually provided through BCIS Ltd.

-       The nature of the interest secured on the funding was queried. It was confirmed that the returns of the interest have been favourable and more detailed updates were provided to Full Council.

The Committee noted the Annual Infrastructure Funding Statement (2023-2024) and Section 106 Update (as of November 2024).