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S106 Funding and the Implications of S106 Pooling Restrictions

Meeting: 19/03/2015 - Community Services Scrutiny Committee (Item 21)

21 S106 Funding And Interim Arrangements Ahead Of The Local Introduction Of The Community Infrastructure Levy pdf icon PDF 42 KB

Minutes:

Matter for Decision

Under national Community Infrastructure Levy (CIL) regulations, new restrictions from 6 April 2015 would limit substantially the extent to which councils can enter into new S106 agreements with developers (and, therefore, significantly reduce the number and value of new S106 contributions from new developments). This was in addition to further constraints covered by a ministerial announcement in November 2014. Cambridge was particularly affected by the latest restrictions as the city council cannot introduce (or receive payments via) the Community Infrastructure Levy until after the examination of its draft Local Plan and CIL proposals has been concluded.

 

Whilst working within the CIL Regulations, the city council (working

closely with County Council and South Cambridgeshire District Council) was actively seeking an interim solution prior to the implementation of CIL, in order to minimise the impact of these changes.

 

Decision of Executive Councillor for City Centre and Public Places

 

The Executive Councillor resolved to:

 

       i.        delegate authority to the Head of Planning Services to finalise the city council’s interim approach to seeking S106 contributions from 6 April 2015 until the local implementation of a Community Infrastructure Levy for Cambridge. The final details of this interim approach will be agreed in consultation with the Executive Councillors for City Centre & Public Places and Planning Policy & Transport, their Opposition Spokes and the Chairs of the Community Services and Environment Scrutiny Committees;

      ii.        confirm that the scheduled fourth S106 priority-setting round (based on S106 developer contributions already received and available) will go ahead in 2015.

 

Reason for the Decision

As set out in the Officer’s report.

 

Any Alternative Options Considered and Rejected

Not applicable.

 

Scrutiny Considerations

The Committee received a report from the Urban Growth Project Manager.

 

The Committee made the following comments in response to the report:

     i.        Queried whether some developers might seek to rush through applications in the knowledge that in the interim period they might avoid both CIL and S106 contributions.

    ii.        Queried what steps had been taken to inform MPS about the situation.

 

In response to Members’ questions the Urban Growth Project Manager and the Head of Planning stated the following:

   iii.        Alternative approaches to mitigation measures were under investigation, albeit that the options were quite limited in the interim period prior to the implementation of the Community Infrastructure Levy.

  iv.        Counsel’s advice was being sought on what was possible.

 

The Head of Planning stated it had been expected that the Local Plan would be in place by now and had that been achieved, this situation would not have arisen. Her team had responded to government consultation and had been in contact with local MP’s. More details would be circulated outside the meeting.

 

The Committee resolved unanimously to endorse the recommendation.

 

The Executive Councillor approved the recommendation.

 

Conflicts of Interest Declared by the Executive Councillor (and any Dispensations Granted)

 

No conflicts of interest were declared by the Executive Councillor.