Archived decisions

Hampshire County Council

Cabinet

24 September 2007

A Formulaic Approach to Developer Contributions

Report of the Director of Environment

Item 7

Contact: Laura McCulloch, tel 01962 857818

1. Summary

1.1 Following several years of development work a draft Transport Contributions Policy, which sets out a proposed method of calculating transport contributions from developments using a cost per multi-modal trip as the basis, was prepared earlier this year and presented to a Policy Briefing, prior to approval by the Executive Member for Environment as a basis for further consultation. Following this consultation authority is now sought to adopt the policy. The aim of the approach is to ensure transparency, consistency and clarity for developers through a consistent approach to calculating transport contributions across the county.

1.2 It is envisaged that a similar approach will now be explored in relation to other areas of the Council's activities, and that further proposals will be considered and brought before the Cabinet in due course.

1.3 In the meantime this policy will allow the County Council to maximise the level of transport contributions sought from developers in order to mitigate the impact of their development, and thereby support the aims and objectives of the Local Transport Plan (LTP) by implementing schemes to improve safety and accessibility and reduce congestion. This is particularly important at a time of restrictions on the County Council's own LTP Capital Programme.

1.4 The proposed policy will substantially strengthen the County Council's position in financial negotiations with developers and significantly increase the funding stream for county-wide transport improvement schemes to help address the impacts of development.

2. Recommendations

2.1 That the proposed Transport Contributions Policy be adopted by the County Council and used as a basis for the operation of Highways Development Control.

2.2 That representations be made to the district and borough councils within Hampshire to incorporate the proposed Transport Contributions Policy within their Local Development Frameworks as they are developed.

3. Introduction

3.1 The County Council has been successfully negotiating transport contributions from developments for many years to mitigate their impact on the transport network. Hampshire County Council currently secures around £6 million per year but this is done very much on an ad hoc basis and there is little consistency across the county. In addition the District Council Agencies take differing approaches to negotiating transport contributions, ranging from securing £5,000 per house in one area to no contribution at all in others. With the level of development within the county due to increase as a result of the South East Plan, it is vital that the cost of improving the transport infrastructure to accommodate the travel demand created by the development is secured as part of the planning process.

3.2 Notwithstanding proposals to introduce a Planning Gain Supplement, Government guidance at present supports the adoption of a formulaic approach to calculating contributions and it has become apparent that this is the only way to ensure a transparent, consistent approach to securing transport contributions across the county at both county and district level.

3.3 The Highways Development Control team has examined the formulaic-based contributions policies adopted by other authorities, both county and unitary, and using these tried and tested examples, along with the guidance within Circular 05/2005 which deals with planning obligations, a methodology has been devised for use within Hampshire using recent developments in Hampshire as a basis.

4. Consultation Process

4.1 A copy of the draft Transport Contributions policy, `A New Approach to Calculating Transport Contributions in Hampshire', was sent to a variety of stakeholders, including districts, neighbouring counties, the unitary authorities of Southampton and Portsmouth, developers and consultants. A full list of the consultees and a summary of their responses can be found in the Background Paper on the Consultation.

4.2 A workshop was held on 23 August 2007 to which key stakeholders were invited to further discuss the issues raised. The list of attendees and notes from the workshop can be seen in the Background Paper on the Consultation.

4.3 The issues raised have been grouped into five main topics and these were the basis for the workshop discussions:

      (i) principles of a formulaic approach;

      (ii) use of multi-modal trip rates;

      (iii) calculation of the cost per trip;

      (iv) link with Section 278 Agreements; and

      (v) implementation of the policy.

4.4 A number of consultees offered their support for the principle of developing a formulaic approach to calculating contributions, particularly to increase transparency and certainty in the planning process. There were a number of issues raised by stakeholders regarding different aspects of the proposed policy. The comments raised by consultees have been outlined and all of the issues addressed in the Background Paper on the Consultation.

5. Transport Contributions Policy

5.1 The proposed Transport Contributions Policy (set out in the Background Paper) has been amended to take into account comments and suggestions made by the stakeholders. Option 1a of the draft policy was the preferred option of the consultees. This was based on using a number of sites to derive the cost per trip and has residential dwellings separated into groups so that a one-bed dwelling is a distinct category. The proposed policy has also been amended to reflect this preferred option.

5.2 The following table outlines the multi-modal trip rates and costs per trip set for residential and employment uses and gives an idea of the level of contribution sought for different types of development.

C3 - Residential

Cost per Trip

(£)

Household Occupancy

Multi-Modal Trips (per dwelling)

Cost per dwelling

(£)

1 Bed Dwelling

2-3 Bed Dwelling

4+ Bed Dwelling

535

535

535

1.3

2.42

3.5

3.7

7.0

10.2

1,980

3,745

5,457

B - Employment

Cost per Trip

(£)

Multi-Modal Trips (per 100sqm)

Cost per 100 sqm

(£)

B1 Business

B2 General Industry

B8 Warehouse & Distribution

230

230

230

18.7

7.5

9.4

4,301

1,725

2,162

5.3 The costs in the table are based on 2007/08 contribution levels and will be subject to appropriate indexation for future years.

6. Impact Assessments

6.1 This report relates to a method of calculating transport contributions which will be secured, collected and spent through the Transport Capital Programme. The impact of the programme as a whole is considered as part of the LTP. There are no adverse impacts in terms of race or gender as a result of the proposed policy approach.

7. Conclusion

7.1 The recommendation to adopt the Transport Contributions Policy will enable the County Council to ensure that each development in Hampshire makes a reasonable contribution towards mitigating its impact on the transport network, and maximises the level of contribution sought from development in order to support the aims of the LTP. Adopting a policy which sets out a clear method of calculating transport contributions will allow transparency, consistency and clarity for developers. They can be assured that the same approach will be taken across the county whether dealing with County Council Highways Development Control Officers or its Agents.

7.2 It is anticipated that further development of the "tariff approach" will now take place in relation to the impact of development and the potential to secure contributions from developers for other relevant Council services. These will be brought forward to the Cabinet in due course.

This proposal does not link to the Corporate Strategy but, nevertheless, requires a decision because: it seeks Cabinet support for the new Transport Contributions policy which will substantially strengthen the Council's position in financial negotiations with developers and significantly increase the funding stream for county-wide transport improvement schemes.

Section 100 D - Local Government Act 1972 - background papers

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

NB the list excludes:

1.

Published works.

2.

Documents which disclose exempt or confidential information as defined in the Act.

TITLE

LOCATION

1. Transport Contributions Policy

(A New Approach to Calculating Transport Contributions in Hampshire) September 2007 (File 6/6/3/75)

2. Consultation-Transport Contributions Policy (File 6/6/3/75)

Environment Department

Highways Development Control

Sheridan House

Winchester

1453Rpt/LMcC