Agenda item

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

 

             i.           The correspondence between the County Council and Charnwood Borough Council (the Borough Council) summarised in paragraph 18 of the supplementary report.

 

            ii.           The Borough Council’s approach to the s.106 agreement in respect of planning application P/22/1224/2 and associated implications for the County Council as set out in paragraphs 32-35 of the supplementary report.

 

               iii.              The issue of a letter dated 29 November from the Borough Council to the Local Plan Inspectors published as EXAM 88 A on the Local Plan website, in response to their letter (EXAM 88) dated 5 November, and a further response from the Inspectors’ dated 4 December 2024 published as EXAM 88 B, which are appended to the supplementary report.

 

          iv.           The publication of a report for consideration by the Borough Council’s Cabinet on 12 December 2024, entitled ‘Charnwood Local Development Scheme December 2024’ and that following the Borough Council’s Cabinet meeting, which is not livestreamed, draft minutes have been provided to the County Council by the Borough Council which confirm agreement to all four recommendations. Charnwood Borough Council Cabinet 12 December Agenda and Draft Minutes

 

            v.           The absence in the Borough Council’s draft minutes of:

 

a)         any reference to the Borough Council’s recently changed view that EXAM 88 is a material consideration in progressing the Local Plan;

 

b)         any recognition of the County Council’s serious concerns at the approach being taken by the Borough Council in respect of the Local Plan in the run up to its Plans Committee meeting of 17 October and subsequently, in particular the long-stated concern that both the draft Local Plan strategy and planning applications recently considered by the Plans Committee do not address the cumulative transport impacts and needs to which collectively they give rise;

 

c)          the estimated potential loss of up to £3.3m of highways and transport contributions, subject to viability assessments, as a result of the decisions of the Borough Council’s Plans Committee of 17 October;

 

d)         any explanation of the Borough Council’s attempt to exclude the County Council from s.106 agreements, contrary to national Planning Policy Guidance on how a local planning authority should work with infrastructure providers;

 

e)         any evidence to back up the Borough Council’s claim made in correspondence with the County Council that a) exclusion of the upper tier authority from s.106 agreements is commonly practised in other two-tier areas, and b) the County Council had “refused to sign” s.106 agreements, which is not correct;

 

f)           the County Council’s request for its concerns to be put on the record at the Borough Council’s Cabinet meeting, a request rejected by the Borough Council;

 

            vi.           The potential implications for the LHA in its role as statutory consultee arising from the Local Plan process as set out in paragraphs 26 to 27 and paragraphs 29 to 39 of the supplementary report.

 

         vii.           The publication of the new National Planning Policy Framework (NPPF) on  12 December.  This will have implications for all local plans in Leicestershire, not least because it will significantly increase the level of housing which local authorities have to plan for and may mean that many more local authorities without an up-to-date local plan will no longer be able to demonstrate a five-year housing land supply.  The impacts for this Local Plan are currently being assessed. 

 

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.           work alongside, support, and co-operate with the Borough Council as necessary, through a more appropriate governance structure than the current Infrastructure Board, to develop the further viability evidence requested by the Inspectors as speedily as possible, now the Borough Council has formally confirmed via a resolution of its Cabinet on 12 December that it is seeking to take up the option put forward by the Inspectors to progress the inclusion of a Community Infrastructure Levy (CIL) in the Local Plan.

 

            ii.           In the first instance it is appropriate for County Council officers to review the viability evidence to be provided by the Borough Council’s consultants, a draft of which the Borough Council has said it will provide, to discuss the evidence before it is finalised, noting the need for expediency as the Borough Council has committed to providing this information to the Inspectors in the week beginning 13 January 2025.  Following the submission of evidence and the response from the Inspectors, the County Council will make proposals to the Borough Council in respect of future governance arrangements.

 

           iii.           Participate appropriately in the development and implementation of a CIL charging schedule in line with national guidance and 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.

 

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

 

C)        That, given the continued difficulty in securing clear and consistent responses from the Borough Council on key issues, the decision of the Borough Council’s Cabinet not to formally recognise the serious concerns raised by the County Council in its resolutions of 12 December, that a number of questions asked of the Borough Council still require answers, and the already protracted Local Plan process and the potential delay in adopting a Local Plan, the County Council is yet to be assured that an adopted Local Plan will provide the necessary infrastructure to support growth sustainably. Should the Borough Council fail to ensure there is a suitable mechanism to secure sufficient and timely funding through developer contributions, this will adversely impact the highways and transport provision in Charnwood which will be felt by the residents and businesses of Charnwood. 

REASONS FOR DECISION

 

The County Council has a duty to cooperate in the development of the Local Plan.  The 'duty to cooperate' was created in the Localism Act 2011 and places a legal duty on local planning authorities, county councils in England and public bodies to engage constructively, actively and on an ongoing basis to maximise the effectiveness of local plan preparation in the context of strategic cross boundary matters. This will continue over the extended Local Plan examination period. The County Council has proactively contacted the Borough Council in the context of this duty and received a response to letters of the Chief Executive sent on the 27 November and 3 December on 9 December, which was in turn responded to on 11 December.

 

The Borough Council has recently taken the highly unusual step of excluding the County Council from a s.106 agreement in relation to planning application P/22/1224/2. This has several potentially negative implications for the County Council as set out in paragraphs 27-33.

 

The Inspectors’ letter (EXAM 88) sets out the latest position regarding the emerging Local Plan.  The Inspectors have made clear that, in order for the Local Plan to be modified in the manner suggested by the Borough Council, further evidence is required, including viability evidence. The Borough Council has commissioned a viability study without any input from the County Council. However, following the recent exchange of correspondence referred to above, the County Council has been invited to review the viability work before it is submitted to the Inspectors. The County Council has proposed a meeting with the viability consultants once their work has been shared, although this has yet to be confirmed by the Borough Council. The Borough Council has committed to submit this evidence to the Inspectors by the week commencing 13 January 2025. Although the County Council was not consulted on this date, it will prioritise this work, given the urgent need to adopt the Local Plan and associated CIL schedule in the best interests of Charnwood residents.   It would have been far better for the County Council to have been able to contribute to the development of the brief for this evidence to help make the process as efficient as possible, given the risks of delays. 

 

The County Council believes this regrettable situation could have been avoided.  In relation to the efficacy of the current Infrastructure Board, the Chief Executive advised the Borough Council in correspondence that the County Council believed it to be unproductive and “would wish to see a refresh of the governance and oversight structure, jointly agreed, so focussed and effective work can take place on providing the Inspectors with the CIL-related evidence and development.  We would need to make the best use of what resources the County Council has for such work, recognising there are demands from other district Local Plans.  I support my colleagues in their view the current ‘Infrastructure Board’ needs to be replaced with a new body with tighter terms of reference and attendance restricted to key officers.  The County Council would also expect to approve the brief and associated programme of delivery for any consultants appointed to lead the viability work.”  The County Council’s concerns with communication over the Borough Council’s intentions to introduce a CIL are a matter of record. The Borough Council’s response to the County Council’s request, reported above, was that focus on governance would cause delay. Whilst they were prepared to consider suggestions for change, they have proceeded to reconvene the infrastructure Board and did not consult the County Council on a brief for consultants leading on the viability work.

 

The latest correspondence from the Inspectors, EXAM 88 B, confirms the dependence of the successful progression of the Local Plan examination on the provision of satisfactory viability evidence.  It highlights that it is only when this has been reviewed by the Inspectors, and a decision made that the examination can progress, that a draft timetable would be issued, setting out the remaining stages of the examination.  This has potentially significant impacts on the County Council as LHA, including potential further delays in the adoption of the Local Plan. The risks associated with delays to adoption remain as previously set out. 

 

Following a previous report to this Cabinet, it was resolved that ‘until the County Council is formally notified of the Borough Council’s decision following the Inspectors’ letter, and the reasons behind recommendations to its Cabinet, the County Council is unable to take any action to assist in progressing the Local Plan’.  The resolution to approve revisions to the Local Development Scheme by the Borough Council’s Cabinet on 12 December 2024 is significant in setting out the Borough Council’s position and therefore informing the County Council’s next steps.

 

The County Council recognises the potentially negative impacts of lack of strategic transport investment to support growth on Charnwood residents and businesses and will therefore seek to mitigate these impacts are far as practically possible, with the primary means of mitigation 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 County Council therefore proposes to support the Borough Council to implement a CIL schedule. The Chief Executive has reiterated this commitment, made in previous approved Cabinet recommendations to Charnwood Borough Council in correspondence dated 11 December 2024. Progress, however, will be dependent on the view of the Inspectors on the further viability evidence to be submitted by the Borough Council.

 

It is likely that the new NNPF will have significant implications for plan making in Leicestershire.  As more information becomes available Officers will consider the implications for the Charnwood Local Plan and act accordingly.