A Possible Charging Structure for Advice

BOROUGH OF POOLE

LOCAL ECONOMY OVERVIEW GROUP

2 MARCH 2006

REPORT OF HEAD OF PLANNING DESIGN AND CONTROL SERVICES

A POSSIBLE CHARGING STRUCTURE FOR ADVICE

1.0 PURPOSE OF REPORT

1.1 To advise members on whether the cost of advice for Development Control could be redirected to those who benefit directly from the advice. This would also have the potential to speed up the processing of planning applications and reduce the net cost of the service. It is suggested that aspects of the planning service which are currently being provided free of charge should be subject to a range of charges as set out in the recommendations.

2.0  BACKGROUND

2.1 Section 93 of the Local Government Act 2003 introduced a general power for Local Authorities to charge for discretionary activities, that is, services that an authority has the power, but is not obliged, to provide. In the case of planning, this may apply to areas of activity outside the scope of the existing fees structure, such as pre-application discussion and advice. The income from charges for such services must not exceed the costs of providing them.

2.2 The Planning and Compulsory Purchase Act 2004 allows for activity outside the determination of planning applications to be covered by a fee regime. It also allows for fees or charges to be levied, whereas the current provisions allow only for specified fees. This allows authorities to set their own fees or charges.

2.3 Some sectors of the industry have indicated that they would be prepared to see higher fees for larger developments, although they would expect to see a continuing improvement in the quality of service in return.

2.4 Within Planning Authorities there is a pressure to hit targets. This current target-driven culture has led some Council's to dispense completely with pre-application discussions as they are taking up so much staff time and affecting application processing performance. This can mean that the Local Planning Authority is unable to access a larger share of the Planning Delivery Grant. Others have introduced a charging regime so that meetings can be focussed better and other areas of work are supported directly by fees charged to the beneficiaries.

3.0 CONSIDERATIONS

3.1 “The Planning service includes aspects of public good and private benefit. The development control system aims to promote some public good – in particular the long-term benefits of well-designed communities – but also has clear private benefits to applicants. The charging of fees relates as far as possible to private benefit”

ODPM Consultation Paper Dec 2004

3.2 At a time when Local Planning Authorities are under pressure to fund their services it is perhaps appropriate to look at some of the discretionary work we undertake for which no charges are made.

3.3 These services are not reflected in the statutory fee scale for processing planning applications which do not in themselves cover the full cost of processing an application. So the costs of such services (which are primarily to the benefit of developers (who may be private householders)) are borne entirely by the Council tax payers.

3.4  Planning Authorities, both in the area and nationally, are adopting a more financially aware approach these days brought on in large part by the demand for planning services set against the funding made available by Government. This is not withstanding the Planning Delivery Grant which, in the main, is reserved for use within Planning Units. Many authorities are now charging for pre-application meetings, handling permitted development enquiries and also for any requests to deal with minor amendments to approved schemes (either before or after implementation).

There are now general powers available to local authorities to charge for these areas of work.

4.0 SERVICES

These areas can be summarised as follows;

4.1 Pre-application advice

This is advice provided in advance of the submission of an application and helps to frame the formal submission. The proposal may require a site visit and meeting, as well as a formal written response.

Key Considerations -

·  Site investigation and research is also likely to be required for all proposals. Pre-application advice can take as little as 1 hour to several days depending on the complexity of the proposal and site and the number of agencies involved.

·  All pre-application advice regardless of the size or complexity of the proposal, is currently free of charge.

·  The argument has long been advanced that it is in the local authority’s best interest to ensure that pre-application advice is sought and obtained before planning applications are submitted. This ensures that any key concerns are identified and resolved prior to a planning application being submitted thus enabling the Council to process the application more efficiently which reflects in the Council’s performance figures and ultimately the Planning Delivery Grant Allocation.

·  The charging process for pre-application advice is slightly more difficult to implement which is one of the main reasons that it has not been adopted more widely.

·  Charging for this type of advice may deter the public from seeking advice and, as a result, may require the LPA to spend longer determining applications.

·  There may also be an increase in the number of refusals and subsequent appeal work load which could affect targets.

·  It would certainly bring additional responsibilities for the Local Planning Authority who would be expected to identify all key issues and potential contributions at the outset (i.e. get the advice Right First Time).

·  There is a large variety of major application types and some authorities are charging a standard rate and others a varied rate depending on the type of major application. It is suggested that the scale and nature of the proposal should be taken into account to determine the fee.

However, there are many benefits to charging:

·  Will filter out any unnecessary requests for advice, freeing up time for officers to focus on schemes that are likely to be developed

·  Expectations of the level and standard of advice and information provided by officer would be raised

·  Improvements in advice may actually reduce the number of amended or re-drafted plans, the number of refusals and subsequent appeal work loads

·  Supports improvements to the Planning Service

What are other authorities charging for pre-application advice?

Major /

Minor/Medium

Westminster / £2,000 / /
Hammersmith and Fulham / £1,300 / £650
Barnet / £1,000 / £500
Camden / £1,000 / /
Havering / £1,200 / £600
Leeds / Charging but scale not given
Purbeck / £100 / £50
Windsor and Maidenhead / £30-£70 per hour
Hart / 25% of formal planning application fee
Lewes / £550 / /
Please note that Purbeck charges do not include site visits, investigation or meetings which are charged hourly.

4.2 Permitted Development Enquiries

This advice is provided to determine whether a proposal requires a formal planning application.

Key considerations -

·  Enquiries can take as little as 10 minutes to a full working day to determine depending on the complexity of the site history, constraints and current proposal.

·  All permitted development enquiries are free of charge. They are usually submitted in writing and targeted for a response within 10 working days. All information required to determine permitted development enquiries is also readily available and free of charge to the public but can be difficult to interpret.

·  Customers can seek this advice from professional agents or directly from the Planning Portal.

·  General advice relating to basic proposals, current applications, planning law and policies is provided by a duty officer over the counter or via telephone and this service should be retained.

·  The formal procedure for determination is to submit a Certificate of Lawfulness of Proposed Use or Development which carries a charge of half the cost of a formal planning application for development. On the basis that that the majority of cases involve householder development, a CLOPUD would attract a fee of £67.50.

·  There is a concern that charging for this service may encourage the public to undertake this process themselves or seek advice from elsewhere which may not result in an accurate determination. Together with those who are deterred from finding out whether they require permission because of the fee, this could create an increase in enforcement work.

·  However, Purbeck and Bournemouth Councils have been charging for these enquiries for well over a year now, and there has not been a noticeable difference in the amount of enquires or enforcement work that they undertake.

·  The Local Planning Authority currently receives in the region of 650 permitted development enquiries per year. If charges were implemented that were similar to other local authorities in the Dorset, the extra income generated could be about £26,000 per year (£40 per enquiry).

·  A payment for a simple flat rate fee can be made in cheque, cash or by debit/credit card.

4.3 Minor Amendments

This process is to determine whether a further formal planning application would be required to undertake changes to an approved scheme (whether under construction or not).

Key Considerations -

·  These enquiries can take an hour or more for an officer to determine depending on the complexity of the changes. Minor amendments would involve investigation of the site history and possibly re-notification of neighbours and further site visits to ensure that the work is unlikely to have any greater impact than the original scheme.

·  In many respects it is tantamount to a mini planning application but dealt with on an informal basis.

·  Recent legal judgements seem to indicate a planning application exists in its approved state or not at all. East Dorset District Council have taken the stance that they require a further planning application if any changes need to be made to the granted scheme which may, in turn require the full application fee to be paid again.

·  Other local authorities have adopted a charge and that, compared to the delay and inconvenience of putting forward a revised planning application, is generally seen as being a pragmatic way forward that reflects good service.

·  Developers may not seek approval from the planning authority and undertake the work in any event. This does not seem to be a problem for other authorities who currently charge for this service as they have not noticed a marked rise in enforcement activity. Both Bournemouth and Purbeck Council return the payment if it does not constitute a minor amendment and the applicant is required to submit a formal planning application. The charge for the service should reflect the time taken to determine whether the changes would constitute a genuinely “minor” amendment. It is not recommended that any refund be made.

·  On average 200 requests for minor amendments to approved schemes are received each year and are almost always of benefit to the applicant yet this service is currently funded by the community. The implementation of a system of charging which is consistent with other authorities in Dorset (£75 per request) could create an income of £15,000.

4.4 Other discretionary planning services

There is also a variety of other services that are provided by the Planning Authority which have value to developers and people buying and selling property. Currently, most of these services are provided free, so in effect subsidized by the Council taxpayer.

These services are:-

a) Compliance with conditions – requests usually received from solicitors acting on behalf of clients selling or buying a property who require confirmation that conditions relating to a planning permission have been satisfactorily discharged. It usually requires file research, preparation of a letter and possibly a site visit by an officer.

b) Confirmation of existing, authorised or permitted use – requests by owners or potential buyers of a property that require confirmation of the property’s established use class. Where there is not a previous planning decision stating the use class, it may be necessary to investigate and determine using information available on file (if any) and even possibly a site visit. Some authorities require a formal application for this determination.

5.0 RECOMMENDATIONS

5.1 It is recommended that the following fees and charges should apply from 1st May 2006 or as soon as possible thereafter.

5.2 The schedule of fees and charges together with the amount of income raised to be reviewed no later than 1st January 2007 and, in the event of fees being increased nationally in 2006, the figures set would be increased proportionally.

Permitted Development Enquiries

A flat rate fee of £40* be introduced.

Minor Amendments

A flat rate fee of £75* be introduced. This fee should apply regardless of whether the request is deemed to be a minor amendment or not.

Pre-application advice

All pre-application services would include :

·  Research of relevant policies, history and constraints

·  Site visit (where relevant)

·  Written confirmation of advice

Householder Applications

defined as:

·  any requests for pre-application advice relating to alterations to a single residential property

A flat rate fee of £50* per enquiry should be introduced.

Minor Applications

defined as:

·  Commercial alterations or development up to 999m2 floor space.

·  Additional residential development up to 9 units.

·  Advertisement applications for hoardings.

·  Individual proposals for telecommunications equipment and masts.

A flat rate fee of £200* be introduced.

Major Applications

defined as:

·  addition of 10 or more residential dwelling units

·  commercial alterations or development of 1000m2 floor space or more

·  development involving a site of 0.5 hectares and over

A charge should be introduced of 10%* of the cost of a formal planning application for the proposal under discussion.

Each subsequent submission relating to the same site and of the same general character, should be charged at half the original pre-application fee.

For example:

Description of Development / Fee for Formal Application / Fee for Pre-application Service / Fee for Pre-application Service (Subsequent Submissions)
10 Flats/Houses / £2,650 / £265 / £132.50
30 Flats/Houses / £7,950 / £795 / £397.50
50 Flats/Houses / £13,250 / £1,325 / £662.50
70 Flats/Houses / £14,850 / £1,485 / £742.50
100 Flats/Houses / £17,250 / £1,725 / £862.50
300 Flats/Houses / £33,250 / £3,325 / £1,662.50

Additional charges: