Legal action could be used to secure developments cash
GLOUCESTERSHIRE County Council is so desperate for school funding that it is considering legal action to secure millions of pounds from district councils who they claim are “skimming” cash from developments.
Shire Hall chiefs say there is a major disagreement between them and the district councils who have introduced and implemented the community infrastructure levy (CIL).
This is a charge which can be levied by local authorities on new developments to secure money for transport, flood defences, schools, hospitals, and other health and social care facilities.
However, the county council says they have not received a penny of CIL money from Cheltenham Borough Council, Cotswold District Council, Gloucester City Council nor Tewkesbury Borough Council.
Planning and economic development assistant director Simon Excell told the environment and economic growth scrutiny committee that the funding that used to be secured by section 106 agreements has gone down from the tens of millions to just a few million in recent years.
Section 106 agreements require developers to mitigate pressure on the local area by building or paying for infrastructure projects in exchange for planning permission
Mr Excell said: “There is now a worrying downward trend because of the implementation of CIL where in 2019 that figure is reduced to £9.5million and in 2020/21 there’s the extremely worrying figure of £2.7million. It’s clear from the statistics there that councils are failing to secure tens of millions of pounds per annum.
“It’s not just the county council who is losing out. There’s a significant lowering of section 106 monies being secured by district councils. The only exception is the Forest of Dean who have had an increase in section 106. They are the ones who haven’t implemented CIL.
“It may be that we are forced to take more formal legal action against the local planning authorities in question. It may be that we decide to start legal action against the district council’s in question, possibly through judicially reviewing the decisions they make when they don’t adhere to what we’ve asked for.
“There is an example in Stroud at the moment that we are carefully analysing and that might be the test case.”
He said the amount of funding secured by CIL is “not great” and it is being “skimmed off” by district councils before the county council gets an “inkling” that they might receive it. “I’m not saying all district councils act the same.
“There are some who take into account our advice more than others. Stroud at the moment is our biggest angst and we may be taking out legal action in due course depending on how they determine planning applications in the future.”
Economy, environment and infrastructure executive director Colin Chick said the county council has been trying for years to work with the districts. He said the current situation will prevent them from providing the extra school places needed due to growth.
“That’s how desperate we are now. We are not being listened to and it’s taking too long. The impact on this council now is almost beyond any sort of imagination.”
Councillor Chloe Turner (G, Minchinhampton), who also serves as a Stroud District Councillor, said she was pleased the discussion was being held in public. However, she did not recognise how the situation was being described in Stroud. She said all the major sites in their local plan remain within the 106 regime.
“In terms of CIL, since it was implemented in 2017, in the first year GCC didn’t submit any bids.
“In the second year GCC submitted three bids which were all successful. In 21/22, GCC received 90 per cent of the year’s CIL allocation and all eligible bids received funding.”
She said officers really couldn’t have done more to try and be of assistance.
“We have all of the money, I think just over £1m. It’s all sitting there it is fully anticipated that it will come to GCC, whether it’s education or other major infrastructure the county needs. We just need bids that comply with the rules and our officers are ready to help you to do that.”
A Stroud District Council spokesperson said they introduced CIL in 2017, as the Government scaled back the use of Section 106 funding.
They said: “CIL provides infrastructure funding in Stroud District, including for education, and GCC is able to bid for it annually.
“We continue to work closely with GCC so that a successful education bid can be submitted next year, and to ensure that all education needs can be met where appropriate through CIL.”
That’s how desperate we are now. We are not being listened to and it’s taking too long. Colin Chick