Minutes:
The
Cabinet considered a joint report of the Director of Corporate Resources and
the Chief Executive concerning the significant housing and business growth
planned across Leicestershire, the infrastructure required to support this and
seeking support for the steps being taken to address these challenges at a
local and national level. A copy of the
report, marked “Agenda Item 8” is filed with these minutes.
Members
noted the comments of Mr. D. C. Bill MBE CC, submitted on behalf of the Liberal
Democrat Group, a copy of which is filed with these minutes.
Mr.
Rushton said that a co-ordinated approach was essential to deal with the
predicted growth and to meet the needs of an ageing population and increasing
demand at a time of very significant financial challenge for the Council. He
emphasised the need to plan ahead for Leicestershire’s future, to ensure that
infrastructure such as roads, green spaces, and community facilities were in
place at the right time.
Mr.
Rhodes noted that significant funding was needed to support forecasted
expansion and growth. Whilst the Council
had had considerable success in bidding for Government funding this could not
be guaranteed and the level of developer contributions was uncertain. He hoped
that Council Tax income generated via housing development could be earmarked to
support growth.
RESOLVED:
(a)
That the significant forecasted population growth across
Leicestershire, the consequential economic and housing growth planned to
support this, and the financial risks faced by the County Council as the major
infrastructure provider in the area, be noted;
(b)
That the Council continues to press Government to ensure that the
infrastructure required to make a success of its growth agenda is adequately
and fairly funded;
(c)
That in light of issues arising from the funding of the Melton
Mowbray Distributor Road and the Melton North and South Sustainable
Neighbourhoods, including funding through developer contributions, the need for
a cost-sharing agreement with district councils to enable the County Council to
forward fund the significant infrastructure costs through the use of additional
tax revenues be supported;
(d)
That the report be drawn to the attention of the Strategic
Planning Group with the intention for sharing with the Member Advisory Planning
Group for Leicester and Leicestershire (which has overseen the production of
the Strategic Growth Plan);
(e)
That the intention to establish a Growth Unit within the Chief
Executive’s Department to strengthen the Council’s internal co-ordination and
management of growth projects together with the demands placed on available
capacity within Environment and Transport and Children and Family Services
departments to ensure timely response to growth matters, be noted.
REASONS FOR DECISION:
The financial risks faced by the County Council in
delivering the infrastructure necessary to support growth in the County are
significant. The introduction of
cost/risk sharing arrangements with district councils, maximising
developer contributions and increased income, will help to better manage these
risks and share these in a way that is proportionate and fair.
The Government’s approach to the allocation of growth
income e.g. council tax, business rates, new homes bonus, grant funding etc.,
is having a detrimental effect on those authorities responsible for delivering
growth related infrastructure. The Council’s
ability to support and finance local growth needs is likely to be affected
unless there is a change in approach at a national level.
The establishment of a central Growth Unit will ensure
that public services are effectively planned over the short, medium and long
term across Leicestershire and that risks associated with the Council’s
financial contribution to large scale growth and infrastructure projects remain
tightly managed.
Ensuring that developers make appropriate
contributions to mitigate the consequences of their developments via developer
contributions is essential if communities are not disadvantaged and to avoid
the Council being put under excessive financial demands which it will not be
able to meet.
Supporting documents: