Agenda item

To consider a report seeking approval for the Authority’s revised Infrastructure List 2022 and amended Developer Contributions Governance process.

Cabinet received a report seeking approval for the Authority’s infrastructure list and updated development contributions governance arrangements. 

The report presented the Authority’s revised infrastructure list and updated development contributions governance arrangements. This was proposed for the Authority to continueto make best use of developer contributions that supported growth and development and to ensure the borough continued to be an attractive, sustainable place to live andwork.

Developer contributions were an important mechanism to support investment in infrastructure and are secured through either planning obligations entered into with developers under section 106 of the Town and Country Planning Act 1990 (commonly referred to as “section 106 agreements”), the payment of a levy by a developer under the Community Infrastructure Levy (CIL) or through agreements for the execution of works entered with developers under section 278 of the Highways Act 1980 (commonly referred to as “section 278 highway agreements”) . Their use was subject to legislative controls designed to ensure they are usedfairly.

In March 2018 Cabinet adopted an update to the Authority’s Planning Obligations Supplementary Planning Documents (SPDs). The Planning Obligations SPD provides guidance for planning applicants on the circumstances in which planning obligations might be sought from developments across a range of different infrastructureneeds.  In November 2018 full Council approved the Authority’s Community Infrastructure Levy (CIL) Charging Schedule and Cabinet approved the Infrastructure List associated with CIL.

A formalised developer contributions governance process was agreed by Cabinet inMay 2018. This process outlined how the Authority would ensure decisions taken regarding section 106 planning obligations would be fair and reasonable and aligned with the priorities of the Mayor andCabinet. This process and the CIL charge had now been in place for over four years and had remained under continuous review to ensure they were effective and fit for purpose.  In order to continue to ensure developer contributions were utilised to best support the sustainable development of the area this report considered some amendments to the Authority’s Infrastructure List and developer contributions governancearrangements.

Developer contributions was the term used to refer to the Community Infrastructure Levy (CIL) and planning obligations “(commonly referred to as ‘Section 106’ or S106 contributions after Section 106 of the Planning Act). These were planning tools used to secure financial or non-financial contributions towards the provision of infrastructure to support and enable development and to mitigate the impact ofdevelopment.  Within North Tyneside the framework for administering developer contributions was comprisedof:

·       North Tyneside Local Plan 2017 (adopted by full Council, July 2017.

·       Planning Obligations Supplementary Planning Document (adopted by Cabinet, 12 March 2018).

·       Community Infrastructure Levy Charging Schedule (CIL) (adopted by full Council, 22 November 2018

·       Community Infrastructure Levy Infrastructure List (former Regulation 123 List) (approved by Cabinet 19 November 2018)

·       Developer Contributions Governance Arrangements (adopted by Cabinet 14 May 2018)

Each of the above arrangements had been in place for a number of years. This report detailed proposals to refresh the Authority’s Infrastructure List, as part of the Infrastructure Funding Statement 2022, and amend the process associated with Developer Contributions governance arrangements approved in2018.

The current Infrastructure List for North Tyneside was informed by the Infrastructure Delivery Plan 2018 (IDP 2018). This IDP 2018 identified 98 separate infrastructure projects or types and a total cost for their delivery of over £386m. From this evidence of infrastructure requirements, the Community Infrastructure Levy (CIL) was adopted. Alongside adoption of the CIL charge five key infrastructure projects or types were identified to be funded by CIL receipts:

1.     Secondary education.

2.     Health facilities.

3.     Suitable Alternative NaturalGreenspaces.

4.     Community Facilities.

5.     Off-site walking and cycling connections associated with Murton Gap and Killingworth Moor.

The total estimated cost of delivering these infrastructure items in 2019 wassome £33.5m. An index linked assessment of costs suggested this would have increased to over £35m. To date, total planning permissions granted since 2019 had secured in excess of £2.5m in CIL payments with approximately £300k received.

The IDP update had refreshed the Authority’s understanding of infrastructure requirements in terms of updated costs and consideration of the most effectiveapproach to utilising developer contributions to assist in the development of the area – in accordance with the purpose of CIL funds set out at Regulation 59 of CIL Regulations 2010 (asamended). It was considered the findings of the updated IDP justified making amendments to the current Infrastructure List that was agreed by Cabinet in 2018. In making such changes the use of CIL must continue to be for the wider benefit of the Borough in supporting infrastructure needs arising from its growth anddevelopment.

Taking into account the proposed changes as detailed in sections 1.5.11 to 1.5.22 of the report a revised Infrastructure List as contained within the Infrastructure Statement 2022, was included at Appendix 1 to the report. 

In accordance with the delegated Authority and process agreed by Cabinet in May 2018; the process for defining and agreeing section 106 agreements and subsequent project delivery was managed through a section 106 sub-group of the Authority’s Investment Programme Board (IPB). The membership of IPB was the most appropriate group to endorse decisions regarding developer contributions as the board that oversaw the delivery of the Authority’s capital programme once funding was established inthe Authority’s budget setting process.  The process of decision making was formalised in the May 2018 Cabinet report. This now required amendment to ensure decision making regarding the monitoring and identification of CIL funded projects was appropriately reflected.

The revised process for Developer Contributions governance was included at Appendix 2 to thereport.

Cabinet considered the following decision options: to approve the recommendations set out in paragraph 1.2 of the report; or alternatively, to not accept the recommendations.

Resolved that the updatedInfrastructure List2022 includedat Appendix1 ofthe report, be approved; and

(2)  the amended Developer Contributions Governance process as set out at

Appendix 2 to the report be approved, and the Director of Regeneration and Economic Development, in consultation with the Director of Resources, the Assistant Chief Executive,the DeputyMayor andthe CabinetMember forFinance andResources, be authorised to make any minor amendments to the process asnecessary.

(Reason for decision: The Authority has a duty to administer developer contributions in accordance with the relevant regulations and ensure appropriate funding is secured from development and directed in the most effective way to address the impacts and support the development of the area. The recommendations will extend the ability of the Authority to use CILfunds effectively and improve the governance regarding developer contributions decision making.)