NHS trust brings judicial review against three councils in bid to secure £1.8m in developer contributions
The High Court is set to hear a challenge from Worcestershire Acute Hospitals NHS Trust over a decision by three local councils to refuse its request for developer contributions towards healthcare service provision before approving a 2,200-dwelling development.
The planning application in question straddled the areas of Worcester City Council, Malvern Hills District Council and Wychavon District Council, with Worcester and Wychavon agreeing to delegate its determination to Malvern in late 2021.
Malvern's planning committee resolved to grant outline planning permission subject to a s106 agreement but had to delay issuing its decision in order to respond to a second formal request from the NHS Trust for developer contributions.
The Trust submitted its first request for financial contributions towards its acute healthcare services in January 2019 for £3.3m but revised its request down to £1.8m in its second request in January 2021.
An officer's report issued in November 2021 revealed that the application had to be returned to Malvern's planning committee after the council sought external legal advice.
"This is necessary to ensure that the committee is aware that the Trust is requesting a lesser amount of funding from this development", the report noted.
The Trust argued that it required additional funding to continue to deliver its services. It said that the proposed development would strain the Trust's services, leading to increased waiting times and would be a detriment to safety and care quality for both existing and new residents.
But the council refused the request "as the application has been subject to detailed investigation with respect to viability and the local planning authority is satisfied that the financial requests made by the Worcestershire Acute Hospitals NHS Trust (in whole or part) could only be accommodated through the re-opening of already accepted financial appraisals and at the expense or reduction of the provision of other infrastructure considered critical to the delivery of sustainable development, including the provision of much needed affordable housing".
It also said it was not persuaded that the Trust's request "fully meets the tests set out in Regulation 122(2) of the Community Infrastructure Levy (CIL) Regulations 2010.
Regulation 122(2) says:
a planning obligation may only constitute a reason for granting planning permission for the development if the obligation is—
(a) necessary to make the development acceptable in planning terms;
(b) directly related to the development; and
(c) fairly and reasonably related in scale and kind to the development.
The position set out in the officer's report is reportedly the basis on which the councils will be contesting the judicial review.
The hearing is scheduled to be held on 18 and 19 July at the High Court.
The High Court refused a similar judicial review challenge from the University Hospitals of Leicester NHS Trust in February of this year, which centred around a request of almost £1m in developer contributions as part of planning permission for a 2,750-dwelling planning application.
Adam Carey
