Contact: Karin Taylor, ext 7362 email: [email protected]

1. Summary

1.1 The Government is consulting on proposals to introduce a new levy on development. The main purpose behind the proposed reform is to increase housing supply through making development more readily deliverable and acceptable to local communities (eg by ensuring adequate and timely infrastructure provision). The money raised by this `Planning-gain Supplement' is intended to finance investment in local and strategic infrastructure. The Planning-gain Supplement would partially, but not wholly, replace the current `developer contributions' (under Section 106 legal agreements) paid on the development of land. There are aspects of the proposed Planning-gain Supplement which could be welcomed, in that they could enhance the County Council's ability to fund and provide infrastructure, so aiding sustainable development. However, the absence of details of the scope of the Supplement and how it would operate makes a firm judgement on this impossible. The absence of detail precludes a comprehensive response to the consultation document; the Government is called on to carry out further consultation once fully worked up proposals are available. If Planning-gain Supplement is introduced, it is argued that local authorities should be exempt, where they develop land for their own operational purposes.

1.1 The following decisions are sought:

(i) That the Cabinet approves the following principles as the basis for the County Council's response to the Government Consultation on Planning-gain Supplement: The County Council:

(a) regrets the lack of detail in the consultation document which prevents a full understanding of the Government's proposals and thus precludes the County Council from making a comprehensive response;

(b) calls on the Government to publish more detailed proposals to enable more focused comments through a further consultation;

(c) believes that infrastructure requirements at the county and sub-regional level would be delivered more effectively through a locally collected and administered tariff system;

(d) considers that, if a Planning-gain Supplement is introduced, local authorities should be exempt from paying it where they are developing land for operational purposes;

(e) considers that the Government should explain why affordable housing would continue to be provided through Section 106 Agreements; and what impact this would have on funding for other major infrastructure, such as transport, which would come from Planning-gain Supplement;

(f) believes that the Government should commit to publishing an annual statement setting out the value of Planning-gain Supplement collected and Planning-gain Supplement funded investment by region and by county/unitary area.

(ii) That the Cabinet approves the detailed responses in the attached schedule, to the specific questions posed in the consultation document.

2. Reason

2.1 This decision supports Aims 1, 2, 3, 4 and 5 of the Corporate Strategy (Maximising life opportunities; Stewardship of the environment; Achieving economic prosperity; Building strong and safe communities; and Improving services) by seeking to influence the way in which infrastructure relating to new development is financed and implemented.

3. Other Options Considered and Rejected

3.1 As the County Council is a major infrastructure provider, the option of not responding to the consultation is considered inappropriate.

4. Conflicts of Interest Declared by the Decision Maker or Other Executive Member Consulted - None.

5. Dispensation granted by the Standards Committee - Not applicable.

6. Reason(s) for the Matter being dealt with if Urgent - Not applicable.

Approved by: ..................................... Date: ...................................

Councillor T K Thornber