Annual Infrastructure Funding Statement 2023 to 2024
Summary
This report is the Council's Annual Infrastructure Funding Statement, which is a statutory requirement introduced in the Community Infrastructure Regulations in 2019.
The report provides a summary of the information included in planning obligations for the period 1 April 2023 to 31 March 2024. As the Council does not charge a Community Infrastructure Levy, the requirements relating to this method of infrastructure delivery are a nil return.
Legislation
The Community Infrastructure Levy (CIL) Regulations were amended in 2019. Read the amendment regulations on legislation.gov.uk.
These amendments introduced, amongst other things:
- part 10A - reporting and monitoring on CIL and planning obligations
- schedule 2 - matters to be included in the annual infrastructure funding statement
Regulation 121 (Part 10A) require the publication of a statement which:
- states which infrastructure projects or types of infrastructure the Council intends to be wholly or partly funded by CIL
- a report about the receipt and spending of CIL in the monitoring period
- a report about planning obligations in the monitoring period
This report must cover the previous financial year, April to March, and must be published by 31 December following the end of the financial period, with the previous reports published before 31 December 2024. As regulations make provision for a proportion of CIL receipts to be shared with parish councils, there is also a duty for these bodies to report when they have received CIL.
Schedule 2 of the regulations set out in detail what should be included within this report for CIL and Planning Obligations. This is discussed below, with appendix 1 to 3 providing an itemised list which meets the requirements within regulations.
Community Infrastructure Levy
Whilst the Council initiated work on a Community Infrastructure Levy (CIL) in 2015, this was paused while the Government undertook a review of CIL and to focus resources on to the Local Plan which was adopted in 2019. Subsequently, no further progress was made on CIL as following Government's intention to remove a limit on the 'pooling' of section 106 contributions, which was confirmed in the CIL Regulation Amendments (2019). Previously, contributions towards infrastructure were limited to a maximum of 5 developments, which threatened development viability or infrastructure delivery.
As the Council does not charge CIL, all figures in Appendix 1 are 'nil' and there is no requirement for the Council to state which projects or types of infrastructure the Council intends to fund using CIL money. There is also no requirement for parish councils to produce any monitoring reports.
Planning Obligations
Government guidance explains that 'planning obligations are legal obligations entered into to mitigate the impacts of a development proposal'. Read the government guidance on the GOV.UK website. Appendix 2 includes a table which sets out the information that is required to be published by the regulations.
This can be via a planning agreement entered into under section 106 of the Town and Country Planning Act 1990 by a person with an interest in the land and the local planning authority, or via a unilateral undertaking entered into by a person with an interest in the land without the local planning authority.
These legal agreements are negotiated during the planning application process and include 'trigger clauses' which specify when actions relating to the delivery of infrastructure should take place. These are usually tied to the progress of the development(s) for example 50 dwellings of a 100 dwelling scheme. Once the threshold is set out in the agreement it 'triggers' delivery of infrastructure. Section 106 agreements are negotiated based on the policies and guidance in the Local Plan and Supplementary Planning Documents.
Developers can also agree a 'Deed of Variation' with the Council which can modify a previously agreed Section 106 agreement. During the 2022 to 2023 the Council did not enter into any Deed of Variation that would adjust the level of Section 106 agreements previously secured (Appendix 2, Requirement A).
Amongst other things, the Council seeks contributions to mitigate the impact of housing development on education establishments, which is calculated on the basis of a formula set out in the Planning Obligations Supplementary Planning Document. This formula allows a potential discount based on the number of vacant school places in the area. This discount can be calculated:
- prior to determination when the formula is calculated and the level of discount is factored in to produce an agreed financial contribution that is explicitly stated in the legal agreement. Contributions calculated on this basis are included in 'Requirement A' in Appendix 2
- after determination which requires the formula to be included in the legal agreement and the financial contribution along with triggers for the contribution to be calculated and paid at an agreed point in time. In this circumstance, the discount will be calculated at a later date and it is not possible to specify the total amount secured in the legal agreement. As a consequence the amount secured is not included in Requirement A in Appendix 2. However, Appendix 3 has been provided to detail the applications where a contribution is subject to a formula
Appendix 3 also displays contributions reported in previous Institute for Fiscal Studies (IFS) reports, specifically the maximum contribution that could be received, the actual amount of money received (where appropriate) and information on how future discounts could be calculated.
The regulations require the Council to summarise the level of transactions by a number of terms which are further defined in Government Guidance as follows:
- 'secured' - the trigger clauses associated with the contribution have been met, meaning the developer is now required to pay all or part of the contribution
- 'received' - the developer has paid all or part of the money due to the local planning authority
- 'allocated' - the received money has been allocated to a team within the local planning authority, who will spend the money
- 'transferred' - the received money has been transferred to an organisation outside the planning authority (for example another local authority or Transport for London), who will spend the money
- 'spent' - the received money has been spent on the purpose specified in the section 106 or 278 agreement
- 'returned' - the received money (or a portion of it) has been returned to the developer
Section 278 Agreements
The regulations (Paragraph 4 of Schedule 2) also state that the report may include summary details of any:
- funding or provision of infrastructure provided through an agreement under section 278 of the Highways Act (1980)
- funding or provision of infrastructure under a highway agreement which was provided during the reported year
Whilst this information is not included in this report, the Council will review annually whether information can be introduced into the report.
Appendix 1 - Community Infrastructure Levy
Schedule 2 of the Community Infrastructure Levy (CIL) Regulations Amendments (2019) states that the matters to be included in the CIL report are:
| Requirement | Detail |
|---|---|
| (a) the total value of CIL set out in all demand notices issued in the reported year | Nil |
| (b) the total amount of CIL receipts for the reported year | Nil |
| (c) the total amount of CIL receipts, collected by the authority, or by another person on its behalf, before the reported year but which have not been allocated | Nil |
| (d) the total amount of CIL receipts, collected by the authority, or by another person on its behalf, before the reported year and which have been allocated in the reported year | Nil |
| (e) the total amount of CIL expenditure for the reported year | Nil |
| (f) the total amount of CIL receipts, whenever collected, which were allocated but not spent during the reported year | Nil |
(g) in relation to CIL expenditure for the reported year, summary details of:
| Nil |
(h) in relation to CIL receipts, whenever collected, which were allocated but not spent during the reported year, summary details of the items of infrastructure on which CIL (including land payments) has been allocated, and the amount of CIL allocated to each item | Nil |
(i) the amount of CIL passed to:
| Nil |
(j) summary details of the receipt and expenditure of CIL to which regulation 59E or 59F applied during the reported year including:
| Nil |
(k) summary details of any notices served in accordance with regulation 59E, including:
| Nil |
(l) the total amount of:
| Nil |
Appendix 2 - Section 106 Agreements and Other Matters
Schedule 2 of the Community Infrastructure Levy Regulations Amendments (2019) states that the matters to be included in the section 106 report for each reported year are:
Requirement | Detail | |
|---|---|---|
| (a) the total amount of money to be provided under any planning obligations which were entered into during the reported year | £7,887,448.69 | |
| (b) the total amount of money under any planning obligations which was received during the reported year | £3,700,590.12 | |
| (c) the total amount of money under any planning obligations which was received before the reported year which has not been allocated by the authority | £0 | |
(d) summary details of any non-monetary contributions to be provided under planning obligations which were entered into during the reported year, including details of:
|
134 0 | |
| (e) the total amount of money (received under any planning obligations) which was allocated but not spent during the reported year for funding infrastructure | £3,594,570.36 | |
| (f) the total amount of money (received under any planning obligations) which was spent by the authority (including transferring it to another person to spend) | £6,568,968.36 | |
| (g) in relation to money (received under planning obligations) which was allocated by the authority but not spent during the reported year, summary details of the items of infrastructure on which the money has been allocated, and the amount of money allocated to each item | Countryside and Greenspace | £87,263.56 |
| Education | £2,242,993.63 | |
| Highways | £1,192,414.64 | |
| Transport and Travel | £71,898.53 | |
| Leisure | £0 | |
| Other (including housing) | £0 | |
| (h) in relation to money (received under planning obligations) which was spent by the authority during the reported year (including transferring it to another person to spend), summary details of: | ||
| (i) the items of infrastructure on which that money (received under planning obligations) was spent, and the amount spent on each item | Countryside and Greenspace | £383,766.24 |
| Education | £103,840.48 | |
| Highways | £6,048,709.17 | |
| Transport and Travel | £0 | |
| Affordable Housing | £0 | |
| Leisure | £32,652.47 | |
| (ii) the amount of money (received under planning obligations) spent on repaying money borrowed, including any interest, with details of the items of infrastructure which that money was used to provide (wholly or in part) | £0 | |
| (iii) the amount of money (received under planning obligations) spent in respect of monitoring (including reporting under regulation 121A) in relation to the delivery of planning obligations | £0 | |
| (i) the total amount of money (received under any planning obligations) during any year which was retained at the end of the reported year... | £9,404,877.06 | |
| ...and where any of the retained money has been allocated for the purposes of longer term maintenance ("commuted sums"), also identify separately the total amount of commuted sums held | £0 | |
The matters which may be included in the section 106 report for each reported year are:
Item | Detail |
|---|---|
(a) summary details of any funding or provision of infrastructure which is to be provided through a highway agreement under section 278 of the Highways Act 1980 which was entered into during the reported year | To potentially be considered in future reports |
(b) summary details of any funding or provision of infrastructure under a highway agreement which was provided during the reported year | To potentially be considered in future reports |
Appendix 3 - Potential Maximum Contributions not in Appendix 2
| Financial year | Planning application | Application | Date agreement signed | Highest value | Received | Discount comments |
|---|---|---|---|---|---|---|
| 2020 to 2021 | 18/2804/FUL | The Mains Drovers Lane, Redmarshall | 16 November 2020 | £59,202 | £51,829.57 | Not applicable |
| 2021 to 2022 | 18/0910/OUT | Land South of Green Lane, East of Railway Line and West of A67, Yarm, TS15 9EH (Theakston 300) | 16 November 2021 | £1,323,972 | Not applicable | £9,215 per vacant place in Kirklevington Primary £14,928 per vacant place in Conyers |
| 2021 to 2022 | 20/1898/FUL | Hunters Rest, South of Urlay Nook Road, Eaglescliffe, TS16 0LX (Rockwill Site) | 22 September 2021 | £118,404 | Not applicable | £9,215 per vacant place in Durham Lane Primary £14,928 per vacant place in Egglescliffe |
| 2022 to 2023 | 21/2620/FUL | Wynyard Golf Club, Wellington Drive, Wynyard, Billingham, TS22 5QJ | 01 December 2022 | £678,132 | Not applicable | £9,215 per vacant place in Wynyard Church of England Primary and William Cassidy Church of England Primary £14,928 per vacant place in Northfield and Our Lady and St Bede Catholic Academy |
| 2022 to 2023 | 20/2408/OUT | Land to the West Side of Maynard Grove, Wynyard, TS22 5SP | 12 December 2022 | £1,510,600 | Not applicable | Not applicable |
