Local finance consideration - Public forum - Planning Advisory Service (PAS)
Local finance consideration
The Housing and Planning Act 2016 (Commencement No.2,
Transitional Provisions and Savings) Regulations 2016 states
(2) For the purposes of the reference to “a report of the kind mentioned in section 75ZA(1)” in
subsection (1)(a) of section 75ZB inserted in the Town and Country Planning Act 1990(a) (“the
1990 Act”) by section 156 of the Act, section 155 of the Act (which inserts section 75ZA in the
1990 Act) is treated as if it were in force.
My understanding is that the required financial information is therefore now required in Committee reports. Is anyone implementing this?
Richard Holmes, modified 7 Years ago.
RE: Local finance consideration
New Member Posts: 13 Join Date: 20/10/11 Recent PostsCIL is already a local finance consideration and material consideration in Part 70 of the 1990 Planning Act following the Localism Act 2011. Part 143 of the Localism Act states:
143Applications for planning permission: local finance considerations
(1)Section 70 of the Town and Country Planning Act 1990 (determination of applications for planning permission: general considerations) is amended as follows.
(2)In subsection (2) (local planning authority to have regard to material considerations in dealing with applications) for the words from "to the provisions" to the end substitute "to -
(a)the provisions of the development plan, so far as material to the application,
(b)any local finance considerations, so far as material to the application, and
(c)any other material considerations."
(3)After subsection (2) insert-
"(2A)Subsection (2)(b) does not apply in relation to Wales."
(4)After subsection (3) insert-
"(4)In this section-
(a)
a grant or other financial assistance that has been, or will or could be, provided to a relevant authority by a Minister of the Crown, or
(b)
sums that a relevant authority has received, or will or could receive, in payment of Community Infrastructure Levy;
Andrew Chalmers, modified 7 Years ago.
RE: Local finance consideration
Advocate Posts: 169 Join Date: 20/10/11 Recent PostsIn any debate over local finance considerations remember that these are tightly defined by legislation to include New Homes Bonus and CIL receipts. They do not include council tax or business rates.
It is further complicated that these listed LFCs may or may not be material to a planning decision - so you need to list potential receipts and then justify why they are or are not material to a decision.
It is a very murky area and confusion can only add to the commonly held view that developers are granted permission on the back of behind the scenes deals. DCLG has added to this by encouraging authorities to list financial benefits which are explicitly not material to a decision so communities can see what they will get out development.
Ideally all financial issues including S106 contributions and their validity as considerations in decision making must be set out clearly to avoid the charge that planning permission is being bought or sold.
I would split contributions into:
- S106 planning obligations – which must be material or else it would be illegal to take them
- Local finance obligations – NHB and CIL – which may or may not be material
- Other material benefits – jobs created etc
- Other financial “benefits” – often raised by developers in terms of council tax. My view is that this is clearly local taxation as is business rates, both of which are not necessary to make a scheme acceptable in planning terms and therefore not material to decisions.