PKC payment policy ‘lawful’
Council defends position
Perth and Kinross Council has insisted its policy of collecting cash from developers to pay for infrastructure upgrades is lawful after concerns were raised during a consultation.
In a representation sent to the local authority while it was consulting on its next proposed local development plan Stewart Milne Homes questioned whether PKC’s developer contributions policy was valid in light of a landmark Supreme Court ruling last year.
Lord Hodge ruled both Aberdeenshire and Aberdeen City Council had acted unlawfully when they asked Elsick Development Company to pay £7.5 million for a new bridge over the River Dee as a condition of planning approval for a 4000 home development near Stonehaven as it was nowhere near where the new crossing was planned.
Stewart Milne raised concerns regarding PKC’s policy with regards to the Cross Tay Link Road. Its representation read: “There is a concern that the levels of developer contributions emerging [through] policy and supplementary guidance are unreasonable, resulting in many developments becoming unviable.
“Any requirements for developer contributions must take account of available capacity within the existing infrastructure network and must not be used where there is no direct link within the development or if it is too remote to be considered reasonable.”
And it continued: “Developers should not fund large-scale infrastructure projects to enable development to come forward and make up shortfalls in the local authority budget.
“A fair mechanism of delivery considered on a site by site basis is needed to ensure that development viability is not at risk as a result.
“This should be assessed and demonstrated through the local development plan and not left for supplementary guidance or until an application is made for planning permission.
“It is therefore questioned whether PKC’s supplementary guidance on developer contributions and affordable housing, specifically...in relation to transport infrastructure is valid.
“This includes the Cross Tay Link Road which requires funding of £88 million from developments in the area identified in ... the guidance.
“The validity of pooled infrastructure contributions is even more critical after the Supreme Court’s decision that Aberdeen City and Shire Strategic Development Planning Authority’s strategic transport fund is unlawful.”
However a council spokesperson said: “I can confirm that we are aware of the judgement by the Supreme Court issued in October last year. Developer contributions are used for capital projects only and for infrastructure upgrades related to the planned development.
“We reviewed the council’s policy in relation to developer contributions following the decision. Our policy is materially different and we are satisfied that it is lawful.”