The adoption of new highway infrastructure from new developments result in the County Council, as the Highway Authority, incurring increased maintenance costs for those assets in perpetuity. Commuted sums to cover these additional costs can be recovered from the transferring landowner to enable the new infrastructure to be maintained to the required standards.
Commuted sums are financial contributions made by third parties to Highway Authorities as compensation for taking on the future maintenance responsibility for newly created highways or highway improvements. They are typically, although not invariably, secured through Section 38 and/or Section 278 legal agreements made with developers and landowners.
Commuted sums are generally secured for all non-standard materials and assets from new developments. The commuted sum is calculated, where feasible and appropriate, to cover the difference in costs between maintaining the ‘standard’ and ‘non-standard’ materials and assets.
Commuted Sums Policy
Hampshire County Council’s Commuted Sums Policy Guidance provides a transparent and consistent approach for the application and calculation of commuted sums. It provides guidance for all stakeholders responsible for delivering new infrastructure on the types of materials and assets preferred by the Highway Authority, the associated commuted sums costs, and the necessary levels of consultation required with the Highway Authority for them to be approved and adopted.
The Commuted Sums Policy Guidance includes an associated Commuted Sum Calculator that calculates the commuted sum costs for individual asset types or materials. It enables commuted sums to be calculated in a consistent manner and provides an opportunity for all stakeholders to calculate the potential commuted sums associated with proposed new infrastructure.
Application of Commuted Sums Policy
It should be noted that where a planning submission has been validated for a Section 38 or Section 278 agreement prior to 1 July 2023, commuted sums will be applied in accordance with the previous Commuted Sums Policy. However, if the Section 38 or Section 278 legal agreements are not signed within 2 years of 1 July 2023, the new Commuted Sums Policy will apply.
For details on the previous Commuted Sums Policy please use the link below.