Decision details

a)              That the latest position in respect of the Local Plan be noted, including:

                             i.           The Borough Council shared a draft initial viability report with officers of the County Council on 20 December 2024. This report contained a high-level assessment of the Local Plan’s ability to support the financial requirements of a Community Infrastructure Levy (CIL). County Council officers provided comments before the Borough Council submitted the final report to the Inspectors. County Council officers have not yet been provided with a final copy of the report, which is now available on the Examination website;

                            ii.           On 24 January 2025, the Local Plan Inspectors responded to the Borough Council, after reviewing the initial viability report and the updated Local Development Scheme and have held that the Local Plan examination can continue.  The Inspectors have outlined the next steps, which will include a period of consultation on the CIL viability report and its implications for the soundness of the Local Plan.  The Inspectors will prepare a focused set of Matters, Issues and Questions, on which comments will be sought, and will hold a hearing session on the evidence and provide written responses to the questions.  Depending on the outcome of the consultation and hearing session, consultation on Further Main Modifications will be required to complete the Examination.  The Borough Council has been asked to respond if it wishes to proceed on this basis.  No timescales have yet been provided by the Inspectors, therefore there still remains considerable uncertainty over the timetable and eventual adoption of the Local Plan.  Additional hearing sessions may add further delays to the overall timetable for adoption of the Local Plan.  The position of the Local Highway Authority (LHA) in respect of relevant planning applications coming forward ahead of the Local Plan has been reviewed, as set out in paragraphs 29 to 31 of the report, and will remain the same for the time being, until there is more certainty.  It is likely that this will follow from the outcome of the forthcoming hearing sessions.  In the meantime, officers are requested to write to the Inspectors, via the programme officer, seeking an invitation to attend and be represented at the hearings sessions when they resume;

                           iii.           The publication of the Borough Council’s Full Council Questions and Responses in respect of the Local Development Scheme, Draft Local Plan and development of a CIL, and the County Council’s concerns arising from the responses given, as summarised in paragraphs 34 to 38 from the Leader of the Borough Council, in particular the Response, to a Question that “the County Council has disengaged from discussing the local plan” is incorrect; 

                          iv.           The potential implications for the LHA in its role as statutory consultee arising from the Local Plan process, as set out in paragraphs 27 and 28;

                            v.           The discussions to date with respect to establishing appropriate governance for joint working between the County and Borough Councils going forward in respect of highways and transport matters, noting also the Cabinet’s previous resolution of 17 December 2024 that a more appropriate governance structure than the current Infrastructure Board is needed;

b)              That in line with previous recommendations and delegations, the Chief Executive, the Director of Environment and Transport, and the Director of Law and Governance, following consultation with the appropriate Cabinet Lead Members, be authorised to:

                             i.           Continue work to establish a more appropriate governance structure to allow the County Council to work alongside, support, and co-operate with the Borough Council as necessary;

                            ii.           Participate appropriately in the development and implementation of a CIL charging schedule in line with national guidance and to seek to influence the adoption of a CIL as soon as possible, recognising the potential for work to be undertaken at risk ahead of possible further Local Plan examination sessions;

                           iii.           Seek to mitigate the impacts arising from the potential further delays to the adoption of the Local Plan as far as reasonably possible.

REASONS FOR DECISION

Following previous correspondence from the Borough Council to the Inspectors setting out that it will be necessary to implement a CIL to deliver the needed infrastructure associated with the Local Plan, the Inspectors informed the Borough Council that it would first be necessary to establish if a CIL is a viable solution for the Local Plan (EXAM 88).  The report, commissioned without input from the County Council, was shared in draft form and is the first step in demonstrating this.  At this stage, the report assesses the overall viability of the Local Plan and the potential funding for highways and transport at a whole plan level.  This work is critical to the progression of the Local Plan.

The substantial number of sites allocated in the emerging Local Plan that have been (or could be in the near future) granted planning permission without contributing to the delivery of the identified highways and transport measures, due to the lack of an agreed mechanism to secure strategic contributions, have the potential to undermine the delivery of the necessary infrastructure over the life of the Local Plan.

As set out in paragraphs 34 to 38, the County Council remained concerned about the way in which the Borough Council has interpreted the current and previous issues associated with the Local Plan and highways and transport matters.  As questions were raised about the situation at the Borough Council’s Council meeting on 20 January 2025, it is important to state that the County Council has not disengaged from working with the Borough Council, with timely responses provided to questions and comments raised.  Correspondence has not been received by the Chief Executive or Cabinet Members since 13 December 2024 when a copy of the Borough Council’s Cabinet minutes of 12 December was sent.

The process of including a CIL in the Local Plan at such a late stage has resulted in a further delay to the progression and adoption of the Local Plan.  This has potentially significant impacts on the County Council as the LHA, including possible further delays in the adoption of the Local Plan.  The risks associated with delays to adoption remain as previously set out.

In line with the resolutions of the Cabinet in December 2024, County Council officers have been seeking to agree an appropriate governance structure for future working with the Borough Council in respect of CIL and associated issues.  However, as yet, agreement has not been reached on this issue, with discussions between officers ongoing.

The County Council recognises the potentially negative impacts of a lack of strategic transport investment to support growth on Charnwood residents and businesses and will therefore seek to mitigate these impacts as far as practically possible, with the primary means of mitigation considered to be the expedient adoption of a CIL.  These impacts include those associated with any further delays to the adoption of the Local Plan and approval of allocated sites in advance of an agreed mechanism to secure contributions to (and subsequent delivery of) strategic highways and transport measures.  The Chief Executive has reiterated this to the Borough Council.  However, progress is now expected to be made following notification that the Local Plan Inspectors have agreed that the Local Plan examination can continue, following receipt of the initial viability evidence and updated Local Development Scheme submitted by the Borough Council.

Consequently, the County Council proposes to continue work to reach agreement on appropriate governance structures to enable efficient future working.  However, any agreement reached will need to take account of the significant demand on the County Council’s limited resources to support the local plan development from other district councils.  The level of resource must therefore be proportionate and the governance arrangements sufficiently robust to avoid any future confusion.