Agenda item

The Committee decided to undertake an enquiry into the use of secured under Section 106 of the Town and Country Planning Act 1990 (‘Section 106 monies’).  The enquiry is intending to consider where the monies are being spent across the District, what schemes are being supported through those monies, the process for monitoring use of such monies and the governance of choices of schemes/scheme details approval.

 

Minutes:

It was reported to Members that Section 106 (S106) Agreements were legal agreements under section 106 of the Town and Country Planning Act 1990 between Local Authorities and developers; linked to planning permissions and could also be known as planning obligations. Section 106 agreements were drafted when it was considered that a development would have significant impact on the local area that could not be moderated by means of conditions attached to a planning decision.

 

By way of example, the Committee was adised that a new residential development could place extra pressure on the social, physical and economic infrastructure which already existed in a certain area. A planning obligation would aim to balance the pressure created by the new development with improvements to the surrounding area ensuring that where possible the development would make a positive contribution to the local area and community. The agreement could provide for a financial contribution (often referred to as an off-site contribution or commuted sum) to be made or a particular scheme or improvement could be undertaken by the site developer.

 

The Committee heard that the S.106 would vary depending on the nature of the development and based on the needs of the District. The most common obligations included:-

 

·         Public Open Space

·         Affordable Housing

·         Education

·         Highways

·         Town Centre Improvements

·         Health

 

The Committee also heard that the quarterly report was published on the Council’s website to show how and where contributions had been spent and the Infrastructure Funding Statement showed in more detail the funds received and allocated to projects across the District. The statement provided a summary of financial contributions the Council had secured through Section 106 agreements from new developments for off-site open space, affordable housing and regeneration work along with highway works completed as part of new developments through agreements under section 278 of the Highways Act 1980 (‘Section 278 agreements’).

In summary, the report provided:

 

·         an overview of what S106 and S278 agreements were

·         the Council’s internal process relating to S106 contributions

·         the s106 contributions paid to the Council in the current year

·         s106 contributions and s278 works committed for future years

·         projects delivered in the District via S106 and S278 agreements in the current year

 

It was reported to the Committee that the Council’s Planning Service maintained a register of S106 agreements and obligations. A schedule of sums was available, the intended purpose and location was maintained and updated within the service by a specific officer. The schedule was periodically discussed with managers with particular regard to any sums that may have been available for a limited remaining period. Service managers for the intended purpose of the sums were responsible for identifying potential schemes. Allocations and spend were tracked and reports through the Council’s financial reporting systems and high level budget monitoring.

 

It was also reported that Affordable Housing sums were generally spent on housing acquisitions and could be used in combination with capital receipts from Right to Buy Sales and other capital funding within the Housing Revenue Account. Purchases were considered with reference to the Housing Acquisition & Development Policy and ensured they meet the criteria the Council had adopted. Each proposed acquisition was then subject to discussion between finance and housing officers and a final decision on what funding was used was made either in the Cabinet report or portfolio holder decision that was taken to make the purchase. In 2020/21 £261,000 was spent from S106 funding on housing acquisitions.

 

Members heard how the sums allocated for public space were identified for use by the Head of Public Realm and often that was set out in the S106 agreement itself. The Head of Public Realm engages with Town and Parish councils and Ward Members as required to ensure provision met local need. The intention was to use funds to meet local needs and improve public realm in line with corporate priorities. In addition to the governance of the planning service aimed at using funds for the intended purposes in intended locations the Council’s normal decision making processes applied to schemes including development of land and expenditure of sums.

 

A recent example of a completed scheme was a new play area created off Halstead Road Kirby Cross. S106 monies were used to create a significant new equipped play area for local use. An example of a project in development was an upgrading of the flood memorial at Harwich. The scheme was initiated by local members and potentially, subject to approvals, included a repositioning of the memorial itself, new paving, lighting and Mural.

 

During the discussion on this item, there were several Members who could not recollect being consulted on individual proposals for use of S106 funds in the Wards they respectively represented. It was also commented upon that, while the reporting on the use of S106 funds in parished areas of the District gave quite a good localised set of data, reporting for the unparished area of the District was solely categorised as ‘Clacton’ and therefore of limited value to Councillors and the public. The discussion further highlighted that there were unaccounted sums in the current reporting on the Council’s website in respect of S106 monies.  The Council’s Assistant Director for Finance and IT indicated that this appeared to him to relate to committed funds not being shown. 

 

After an informative discussions the Committee RECOMMENDED TO CABINET that:

 

 

1.            To the extent that it is not happening at present, details of the proposed schemes using S106 funds in a particular ward be advised as a routine to the local Ward Councillor(s) and consideration be given to the views expressed by the Ward Councillor(s) on the proposed scheme before and decisions are taken to implement the scheme.

 

2.            That, for those parts of the District that are parished, the relevant Town or Parish Council  be advised about S106 funds that had been secured and whether they could bid for schemes to be funded or identify schemes for officers to consider.

 

 

3.            That, for those parts of the District that are un-parished, the locality descriptor should be the relevant District Ward rather than ‘Clacton’ so as to improve the understanding of the figures shown for that area.

 

4.            That an annual statement be made on the amounts of monies received in S106 funds, the total sum held by the Council in S106 funds and the sums spent on schemes in that year against the common obligations of:

 

·         Public open space

·         Affordable Housing

·         Education

·         Highways

·         Town centre Improvements

·         Health

 

5.            To note the commitment if the Council’s Assistant Director for Finance and IT that the S106 spreadsheet publicly available on the Council’s website would be amended to include commitments so that the sums shown are clear and complete.

 

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