Planning obligations community benefit strategy
Introduction
LTGDC adopted a Planning Obligations Community Benefit Strategy
(POCBS) in March 2008. This is to ensure that developments
contribute financially and in kind towards the infrastructure that
is needed in the London Thames Gateway area to support the
developments that are coming forward for planning approval. The
Strategy was reviewed in 2009-10 and a revised version of the POCBS
was adopted in July 2010. The Standard Legal Agreement has also
been updated.
Discounted Standard Charge ‘12 month ‘holiday’
Due to concerns expressed by stakeholders during recent
consultation and the lack of recent starts on sites, LTGDC have
introduced a 12 month ‘holiday’ on the Discounted Standard Charge
element due on commencement (i.e. 25% of £6,000 in LR / 25% of
£10,000 in LLV) for schemes implemented in the next 12 months (1
August 2010 - 31July 2011), in order to incentivise early
commencement. This applies to both schemes already permitted but
not yet started and schemes in the pipeline that are consented and
commenced this year. Please see the attached procedure note for the
details of this ‘holiday’ period.
It should be noted that the existing Strategy does not seek a
Deferred Standard Charge on schemes under 100 units or units which
are completed within 3 years for grant of permission, to
incentivise the early completion of development.
2009-10 Review
At the point of adoption, the Board noted a commitment to review
the Standard Charge and Discounted Standard Charge in 2009, and
that this process should be done collaboratively with the
Management Groups and Developer Liaison Groups. LTGDC
re-commissioned Environmental Resources Management (ERM), who had
assisted in the development of the original Strategy, to review the
process and level of charge, in light of its initial period of
operation and any impacts in relation to the current economic
climate. Consultation took place October 2009 – January 2010 and a
number of comments were received. LTGDC has reviewed the comments
and the consultation response schedule below sets out how the
revised Strategy responds to the comments raised.
Current Operation of the Strategy
Two area-based pooled funds have been established and the LLV/LR
Management Groups, together with the Developer and Landowner
Liaison Group assist in determining how these funds are best
prioritised, in accordance with the Public Sector Investment Plan,
to help fund essential infrastructure required for the regeneration
of the area.
LTGDC has negotiated more than £50m via the tariff for strategic
infrastructure in addition to £33m for other specific benefits and
has received more than £4m in contributions. The tariff is included
within ten signed S106 agreements, and a further five agreements
are under negotiation. Projects funded to date include:
- Carpenters Road improvement scheme
- Canning Town Roundabout removal
- Renewable Energy School Demo Projects
- West Ham bus garage road improvements
- DLR Daisy Displays
- LLV bus route study
- Air Quality Monitoring
Background Documents
Linked below are the technical reports and related background
documents:
Previous Consultation
Several rounds of consultation have taken place throughout the
development and adoption of the Strategy and a wide range of
responses were received, which have informed the approach to
planning obligations set out by LTGDC in the Strategy.
In summary, previous consultation on the POCBS took place:
- December 2006 - January 2007 on the technical reports
- August - November 2007 on the detailed provisions within the
Strategy
- January - February 2008 on specific final details
- October 2009 – January 2010 on revisions to the Strategy
Relationship with Community Infrastructure Levy
The 2009-10 review of the Strategy considered changes to the
legal and policy context since the Strategy was adopted in March
2008. The main change is the introduction of a standardised
infrastructure charge in the form of the Community Infrastructure
Levy (CIL). The Regulations that govern the operation of CIL were
introduced in April 2010 and include measures to restrict the use
of tariffs and tie S106 obligations to site specific issues. The
introduction of CIL therefore has the potential to limit the
operation of the Strategy, but it is not until April 2014 that S106
is formally restricted so as to prevent tariffs and it is likely to
be several years before boroughs are in a position to implement
CIL. There is also uncertainty as to whether the new Government
will continue to implement CIL or develop an alternative form of
‘local tariff’. Therefore the review concluded that there have been
no substantive changes which require LTGDC to reconsider the
Strategy as a whole.
Developer and Landowner Liaison Groups
LTGDC has committed to keeping developers and landowners
involved and informed in the provision of infrastructure and
expenditure of monies collected under the terms of the strategy. If
you are a developer or landowner with an interest in the Lower Lea
Valley or London Riverside areas, LTGDC would like to invite you to
become a member of the Developer Liaison Group that has been
established. Attendees at previous meetings include major
house-builders and developers, London First, RSLs, major landowners
in the area, planning and surveying consultancies, architectural
firms and utilities and infrastructure providers.
Please can you let Alice Leach know if you would like to attend
or find out the dates of the meetings. Please do not hesitate to
contact her if you would like any further information, or have
particular issues that you would like the meetings to cover.