Planning our way to growth

Project iStock 000000224397XSmall 146x219Government proposals that would allow developers to force councils to renegotiate s. 106 agreements are unnecessary, argues Cllr Clyde Loakes.

Securing investment and creating jobs is crucial to the success of local places across the country and is a crucial part of the work that local councils undertake. It is important that planning is seen as an opportunity rather than a threat to them.

Councils work strategically and innovatively about how to bring in investment locally, which may include new development. This should not of course mean growth at any cost - development should be sustainable for future generations to come.

It is right that the Government listened to the LGA’s concerns and provided some reassurance around the balance between the economic, environmental and social benefits to a local area from planning decisions. The NPPF should mean that local places now have the flexibility they need to make decisions in their own long term interests.

Ensuring development is viable for the community as a whole is absolutely key and councils are best placed to ensure this is balanced appropriately with developers’ commercial interests. For example, councillors tell us that the number one barrier to new housing development is resident opposition. Importantly however, councillors think opposition to development will reduce when the community receives new infrastructure – such as roads or playgrounds – alongside development.

Section 106 agreements have been the main way of securing community benefit for local areas from development. They are crucial in ensuring important infrastructure requirements are met and that a development is viable and sustainable from both a community perspective and that of local businesses.

Camden, for example, successfully negotiated a Section 106 planning obligation for skills training on the Kings Cross redevelopment. Essex County Council used Section 106 to part fund an extension to the footbridge at Witham rail station, with around £27,000 from a local developer and volunteer labour from the Waterways.

It is therefore unsurprising the LGA is very concerned about proposals in the Government’s Housing Strategy allowing developers to force councils to renegotiate S106 agreements in favour of the developer, to the detriment of the community. When an entire development is in potential financial danger, councils are already taking a pragmatic approach.

For example, Doncaster has acknowledged that there are occasions where development is unviable in some areas of weak demand or lower than average land values. This is because it leads to developers being unable to agree realistic site values as private land owners hold out for higher prices.

The sustainability of any new development should not be subject to being ‘negotiated away', as a result of the unnecessary S106 renegotiation proposal in the Government’s Housing Strategy. Given that councils are already pressing forward with positive discussions with developers, we feel there is no need for any Whitehall intervention on the issue. It remains important that the interests of residents are not affected by imposed renegotiations, as there is a risk they will lose out if developers feel they can get away with a lower contribution to the community.

The forthcoming Community Infrastructure Levy (CIL) is a new charge that some councils can use on new developments from this month. The money can be used to support development by funding infrastructure that the council, local community and neighbourhoods actually want. The Localism Act 2011 says that a ‘meaningful proportion’ of CIL revenues should be passed onto the local community itself.

The rules also limit the ability of local authorities to pool contributions through Section 106. It is absolutely crucial that this remains accountable to council tax payers and we would like to see this funding retained at local level. As locally elected representatives, councillors understand their local areas and can be held accountable for the planning decisions they make.

The impact of the NPPF remains to be seen and the LGA will be working to ensure it is practicable for local authorities. What remains crucial is the importance of Local Plans as the bedrock of the planning system and for ensuring that growth works for both developers and the local community. The LGA, through its Planning Advisory Service, is continuing to work closely with councils to get plans in place in line with the Government's 12-month transition arrangements with more and more coming into effect every month.

With Local Plans in place, local councils and communities will become the drivers of sustainable growth. This provides an opportunity for them to lead development to boost investment and jobs in the interests of local people.

Cllr Clyde Loakes is Vice Chair of the Local Government Association’s Environment and Housing Board.