Planning Obligations SPD 2021

3.0 MANAGING PLANNING OBLIGATIONS

3.1 This section sets out the guidance for applicants for planning permission, infrastructure providers and community groups about how Harborough District Council manages the Planning Obligation process. The process includes making policy, considering applications for planning permission, negotiating, and amending S106 obligations, and monitoring the delivery of planning obligations.

3.2 Alongside the Harborough District Council Planning Obligations SPD, reference should be made to the adopted development plan, national planning policy and national planning practice guidance to assist in understanding what may make a new development acceptable in planning terms.

3.3 A Supplementary Planning Document (SPD) provides more detailed guidance about policies in the Local Plan. Whilst it is not part of the Local Plan itself and not subject to independent examination, it has been subject to public consultation and is a material consideration in determining planning applications.

3.4 The adopted Harborough Local Plan 2011 – 2031 and 'made' Neighbourhood Plans, are available at the following link: Adopted Local Plan | Harborough Local Plan 2011-2031 | Harborough District Council.

3.5 Policy IN1 – Infrastructure Provision seeks to secure appropriate infrastructure and part of the Local Plan, includes an Infrastructure Delivery Plan (IDP), which sets out the framework for what types of infrastructure are needed to support development levels specified in the Local Plan.

Cross Boundary Applications

3.6 Where a planning application site falls partially within or close to the administrative boundary with another neighbouring local planning authority area, the planning case officer will consult with all relevant parties, including neighbouring authorities, as required, as part of the normal decision making process. Any cross-boundary implications would be considered as part of managing the process.

Viability

3.7 Government guidance on viability was updated in September 2019. The aim of the guidance was to ensure that viability is considered upfront, as part of the plan-making process. It also clarified that the costs of complying with planning policies should be reflected in the land value. Where a viability assessment is submitted to accompany a planning application, the PPG clearly states that this should be based upon and refer back to the viability assessment that informed the Local Plan, and the applicant needs to provide evidence of what has changed since then. Therefore, if there are any site specific factors that mean the viability of a particular site differs significantly from that modelled in the whole plan viability testing, applicants can submit a viability appraisal setting out the reasons that necessitate a site-specific viability appraisal.

3.8 The Government is keen to increase the transparency of the viability process and the PPG clearly states that any site specific viability appraisals should be prepared on the basis that they will be made publicly available other than in exceptional circumstances. The PPG continues that even in those exceptional circumstances an executive summary of the viability appraisal should be made publicly available. To aid understanding, the Council encourages summaries of site specific viability appraisals to be prepared in all cases. The Council will therefore publish any viability appraisals submitted in support of planning applications on our website, except where the need for an executive summary only has been robustly evidenced and agreed.

3.9 As explained in para 5.3.10 of the adopted Local Plan, where site specific viability appraisals are submitted the Council will commission an independent review of the viability assessment and the applicant will be required to pay for the cost of this independent review. In line with the PPG on viability, where a lower amount of affordable housing is agreed, a review mechanism or clawback clause may be required in the s106 to enable compliance to be achieved over the lifetime of project.

Questions

The SPD has been updated to include further information about Viability.

Pre-application

3.10 At the pre-application stage officers of the Council will advise and consider the potential impacts on infrastructure and the need for planning obligations which would be necessary to make development acceptable. Officers of the Council will decide, based on the scale, size and nature of the proposal, if specific infrastructure providers should be invited to advise at the pre-application stage.

3.11 The Council also encourages developers of all potential major residential, employment and mixed-use schemes to conduct early public consultation and pre-application consultation with a broad range of service providers and to contact local organisations and identify what local infrastructure may be needed to support new development. The Parish and Community Facilities Officer at Harborough District Council, maintains a list of appropriate contacts at parish level and can assist further.

Submitted Planning Applications

3.12 Planning applications should be accompanied by details to identify the likely impacts of a new development proposal on local infrastructure/services. Developers should give consideration to the range of planning obligations, which are necessary and provide them in the supporting details.

3.13 Where an application site lies partially within a neighbouring local authority area, Harborough Council would seek to co-ordinate proportionate responses in relation to planning obligations as far as possible. However, if agreement cannot be reached the Council will seek obligations relating to the part of the site which lies within its administrative boundary.

3.14 Once a planning application is received, the authority will consult infrastructure and service providers where there might be impacts on the service they provide. The infrastructure provider will be directed to information concerning the planning application on the Council's website and asked to make any comments or respond within 21 days from date notified.

3.15 Infrastructure providers /service areas may include:

Those relating to functions for which Harborough District Council is the responsible authority:

• Affordable Housing
• Community and Sports Facilities;
• Open Space and Recreation;
• Provision of waste and recycling receptacles
• Cemeteries

(The District Council is responsible for cemeteries in some parts of the District, elsewhere it rests with Parochial Church Councils, Burial Authorities or Town and Parish councils).

3.16 Those relating to functions for which Leicestershire County Council is the responsible authority:

• Adult Social Care and Health;
• Waste Management;
• Education;
• Economic Development;
• Highways and Transportation;
• Library Services; and
• Sports and Recreation Facilities.

3.17 Infrastructure providers who identify that a planning obligation is required should set this out clearly in a formal response. Harborough District Council will then consider the requests and decide if the obligations requested meets the CIL Tests.

3.18 It is also important to note that the three statutory CIL tests mean S106 developer contributions can only be used to enable the provision of additional or renewed community infrastructure to create additional capacity in order to satisfy the demands arising from that development to make the development acceptable. It is also important to note that S106 developer contributions cannot be used to put right existing infrastructure deficits.

3.19 Large commercial and employment generating developments may increase demands on infrastructure, therefore if there is a demonstrated need directly related to the development, a contribution will be sought. The types of need may often be related to transportation, such as cycle ways and footpaths, but may extend to other types of contribution (e.g. economic growth/local employment/skills training) dependent on the nature of the development and what is required to make an application acceptable.

Determining planning applications

3.20 In determining planning applications, Harborough District Council as the local planning authority has responsibility for deciding which planning obligations are necessary to ensure developments are acceptable. In executing this responsibility, the District Council will take account of adopted guidance and responses from all service providers, together with any responses from Town and Parish Councils and the views of Ward Councillors.

3.21 Planning applications which require a planning obligation will not be determined unless there is a draft Heads of Terms for S106 Obligations agreed with the applicant in writing, placed on the public planning register (the electronic database of planning applications and associated correspondence also known as the Planning Portal) and referred to in the associated case officer report, which sets out:

• all specific types of infrastructure/projects to be delivered;
• the contribution to any infrastructure required (where this is agreed as a financial payment); and
• the timing of payment or delivery of the necessary infrastructure in relation to development.

3.22 This document covers the principal areas where contributions may be sought, but should not be regarded as exhaustive. The impact of planning proposals on all types of services or infrastructure will be examined on a case-by-case basis when applications are submitted and obligations considered in order to ensure development is acceptable. Cross boundary planning applications: Where a development site falls partly within another neighbouring local planning authority area, the Council will as far as possible, seek to co-ordinate proportionate planning obligations, if required, with the neighbouring authority. However, should an agreement be unable to be reached the Council will seek to obligations from the part of the site which lies in the Council's administrative area.

Negotiating and Finalising the Section 106 Planning Agreement

3.23 When a planning agreement/obligation is necessary, the applicant will need to pay the Council's legal costs to review the document/s.

3.24 The Council's Legal services team may draft the s106 agreement or provide comment on a draft S106 agreement submitted on behalf of or by an applicant.

3.25 Subsequent draft versions of the agreement (version controlled, redacted as needed) may be placed on the Planning Register in liaison with legal representatives of interested parties, until a final agreement is reached.

3.26 The final signed version of the agreement will be placed on the Planning Register.

Variations to planning obligations

3.27 An application can be made to vary or remove a planning obligation at any time on the basis of a material alteration or change in circumstances since the application was originally determined. Where this occurs, the applicant will need to pay the Council legal costs. Where necessary, infrastructure providers will be notified and consulted. Ward Members and town and parish councils may be, where necessary.

3.28 If the application was originally determined by the Planning Committee rather than being delegated to officers, the Planning Committee will usually determine the application to vary the obligation.

Monitoring of planning obligations

3.29 The Council's Planning Obligations Officer co-ordinates the monitoring of developments to ensure the planning obligations are met. Whether a planning obligation requires a developer to undertake some works on site (direct provision) or make a financial contribution to off-site infrastructure, it is important that there is confidence that each planning obligation is delivered.

3.30 Monitoring and subsequent reporting will enable the local community to know the infrastructure needed to make development acceptable has been delivered. It is also important to be able to assure developers that the planning obligation/s they made are spent in accordance with the purposes contained within the S106 agreement.

3.31 Invoices are issued by the Council at defined stages of development (known as trigger points) as stated in a S106 planning agreement. The Council will notify those HDC services with responsibility for delivery of the relevant infrastructure, when a planning obligation payment is received and will record the date by when the planning obligation/s has to be spent.

3.32 Partner organisations for example, the Clinical Commissioning Group (C.C.G.) or Police, may be required to sign an indemnity agreement and ensure contributions are spent in accordance with the S106 Agreement. Annex 1 includes a draft indemnity agreement.

3.33 The Council's S106 database provides a clear and transparent record of obligations required, paid and the use of the contributions in accord with the S106 Planning Agreement.

Infrastructure Funding Statement

3.34 A requirement of the CIL Regulations means Councils are required to produce an annual Infrastructure Funding Statement (IFS). This is a summary of financial contributions which the Council has secured through Section 106 agreements and any other infrastructure funding from new development. It is published annually by 31^st December and put on the Council's website.