Latest news with #S106
Business News Wales
06-06-2025
- Business
- Business News Wales
Planning Reform Is Vital for Wales' Housing Future
The two governments in Westminster and Cardiff Bay have often taken very different approaches to housing and planning. While the Labour Government in England has pressed ahead with ambitious planning reforms, the Welsh Government has, until now, largely avoided such changes. Could this be about to change? There appears to be a growing recognition in Cardiff Bay that planning reforms will be needed to deliver the Welsh Government's target of 20,000 social rented homes as well as its broader housing ambitions. For instance, the First Minister, Eluned Morgan, has made speeding up planning a top priority, and a consultation earlier this year outlined plans to increase Local Planning Authority (LPA) performance and resources. The recently released Affordable Housing Taskforce report is the latest sign of a positive shift in sentiment and sets out a series of ambitious proposals for reforms to both national planning policy and the planning process. Many of the recommendations bear similarities to measures already underway in England through the Planning and Infrastructure Bill and revisions to the National Planning Policy Framework (NPPF). Will the Welsh Government seize the opportunities the Taskforce has set out? Affordable Housing Taskforce Chaired by backbench Member of the Senedd (MS) Lee Waters, the Taskforce aimed to identify both short- and long-term barriers to Affordable Housing delivery. HBF submitted written evidence and met with Waters to provide input. The context of the Taskforce's work is extremely challenging. Housing supply levels in Wales are falling year-on-year, and in 2023-24 just 4,771 new homes were completed – the second-lowest year on record and far below the peak of over 9,000 new homes in 2006-07. The home building industry is a major player in Affordable Housing provision, delivering 45% of all new affordable homes between 2021 and 2023 via Section 106 (S106) agreements – and so making a significant contribution to the Welsh Government's 20,000 social homes target. This is an important and often overlooked point, as with the delivery of affordable units so closely tied to private development, any fall in market housing delivery inevitably reduces the number of S106 Affordable Homes coming forward. Constraints on housing delivery previously identified To unlock housing delivery across all tenures, we have consistently highlighted several key constraints on development in Wales: • Time-expired Local Development Plans (LDPs) which contain unviable and undeliverable housing allocations.• Delays relating to statutory consultee responses and SuDS Approval Bodies (SABs).• Under-resourced Local Planning Authorities (LPAs). • No requirement for councils to calculate a housing land supply since Technical Advice Notice 1 (TAN1) was revoked in 2020, making it very difficult to progress sites which are not allocated in LDPs. Taskforce recommendations The Taskforce's recommendations reflect many of these concerns. For instance, it recommended that land identified as suitable for housing in LDPs should have a presumption towards development. If implemented, this could be transformational and help stop allocated sites from being delayed or even refused once an application is submitted. However, there must be accompanying incentives for LDPs to be kept up to date in the first place to ensure an adequate supply of deliverable allocated sites. Many of the Taskforce's other recommendations are squarely aimed at addressing the key causes of planning delays, such as proposing that LPAs no longer wait for statutory consultees past their response deadlines and establishing multidisciplinary 'development teams' within councils to resolve delays – reflecting England's 'New Homes Accelerator' teams and statutory consultee reviews. The Taskforce also called for greater delegated powers for planning officers on smaller schemes, raising the major development threshold to 50 dwellings, and introducing a national scheme of delegation, all of which could significantly accelerate housing delivery and support SME home builders. What next? Of course, while many of the Taskforce's recommendations reflect those included in England's Planning and Infrastructure Bill, Wales' approach to housing is and will rightly continue to be distinct from that in England. For instance, it is extremely positive that the Help to Buy Wales scheme remains in place, providing vital support for first-time buyers and confidence for industry, while no such support scheme is in place in England. Furthermore, the Welsh Government's policy priority continues to be Affordable Housing, whereas in England, there is a greater focus on a general uplift in supply of all housing tenures. However, despite these differences, both governments now recognise the urgent need to deliver more homes and speed up planning. But how many of the Taskforce's recommendations will the Welsh Government implement – and when? It is positive that the Cabinet Secretary for Housing, Jayne Bryant, has accepted the recommendations that fall to her and has set up an implementation group to oversee them (although the recommendations related to planning fall under a different minister). Some recommendations could be implemented relatively quickly, while on the other hand, many of the more systemic recommendations, such as a presumption towards development for land identified in the LDP, would require new legislation and consultation, and so are unlikely to be implemented soon. As a result, with the next Senedd election due in May 2026 and the possibility of a Reform or Plaid Cymru-led government, some of the more ambitious recommendations are at risk of being delayed or shelved. What role can HBF play in these debates? Looking ahead to next year's Senedd elections, HBF is actively seeking responses from home builders on what changes the next Welsh Government can make to planning and housing policy to further support the industry, and we will continue to push for changes to boost housing delivery of all tenures in the years ahead.
BBC News
30-05-2025
- Business
- BBC News
Row over infrastructure pot spending at Waverley Borough Council
Conservative councillors say that money raised through funds for infrastructure and community projects has become a "hidden revenue stream" for Waverley Borough council allocates income generated by the interest from unspent Community Infrastructure Levies (CIL) and Section 106 (S106) agreements to its main revenue account, the general fund, which includes spending on providing Conservative leader, Jane Austin, said other local authorities had made the decision to ringfence it for infrastructure and that Waverley should do the Liberal Democrats, part of a coalition that run the council, said the interest earned was managed responsibly and in line with national guidance and is a standard practice. CIL are charges made by councils on any new developments and are typically used to pay for infrastructure, such as schools and S106 agreements are negotiated between developers and councils, with funds used to benefit communities, and try to limit and mitigate the impact of new houses. The council is setting up a cross party working group to look at CIL and is reviewing cases of charges, after some homeowners were asked to pay thousands of pounds in fees for making home improvements, without the ability to Conservatives said the council had £28.3m of unspent CIL and S106 money as of 31 March 2025, which they claim is a large amount in proportion to the size of the Austin said it had "quietly become a hidden revenue stream for the council" and that there would be a "black hole" in the finances without it."We've got to the stage where our council is basically relying on the interest from this CIL and from this S106 money," she told BBC Radio Surrey.A council spokesperson refuted this, stating that Waverley had been "independently recognised as the most financially stable local authority in Surrey"."It is also, to our knowledge, the only council in the UK to have published a balanced budget for both 2024/25 and 2025/26," they Liberal Democrat leader of the council, Paul Follows, said it was "standard practice" for "funds to be allocated to specific infrastructure projects and held by the council until they need to be paid for"."These projects typically require extensive planning and can take several months, or even years, to complete," he said."All funds held by the council are managed in accordance with our approved treasury management strategy. This ensures that they generate interest, in line with our statutory responsibility to secure best value for public money."Any interest earned is retained within the council's general fund and is reinvested into local services and the enhancement of public amenities."According to the council, more than £2.1m of the £27.5m collected in CIL receipts to date had already been spent, with more than £15.2m allocated to specific infrastructure projects."Each year, we are committed to setting a responsible and balanced budget that maximises the resources available to deliver high-quality public services for the people of Waverley. This commitment remains unchanged, regardless of the level of interest income received," a council spokesperson added.
Yahoo
28-05-2025
- Business
- Yahoo
Park upgrade paid for with stashed cash
Thousands of pounds stashed in Dudley Council's coffers for years is to be spent on upgrades at a borough park. Work at King George V Park, Wordsley, will go ahead using £24,800 from property developers who agreed to pay for improvements in areas where they build homes. Dudley is to splash cash in the Lawnswood Road green space from agreements linked to applications approved as far back as May 2004. The deals, called planning obligations, are enforced under section 106 of the Town and Country Planning Act. Councillor Damian Corfield, Dudley cabinet member for neighbourhoods, said: 'Section 106 contributions are often multi-faceted with large sums allocated to many different projects. In this case we have held on to and combined several smaller elements of these S106 payments together to generate a significant total amount. 'That amount is now being used to fund this hugely beneficial project for the community in Wordsley, and an example of very smart use of section 106 money.' The park will get upgrades including resurfacing of the multi-use games area, the reinstatement of the bowling green and a revamp of the children's play area. The cash will come from four developments which were approved between 2004 and 2011. Latest figures published by Dudley Council show at the end of March 2024 a total of £2.8m of unspent S106 money was sitting in the authority's bank. In the financial year which ended on the same date the council's income from S106 payments was £61,580. In the same financial year the council spent £1.05m of S106 cash, mostly on education facilities while a further £956,810 had been allocated but not spent. Hoarding S106 funding is common practice for local authorities despite most agreements having a time limit which means the money has to be spent within a specific period or paid back to the developer. According to a report published by the Home Builders Federation (HBF) in autumn 2024, a total of around £6bn of unspent S106 cash was held by councils in England and Wales – with the average council holding £19m. The HBF is calling for greater transparency in local government about why spending is delayed and how long councils are holding on to cash for. Neil Jefferson, CEO at HBF, said: 'Each year developers contribute around £7 billion to local authorities for the provision of local infrastructure, affordable housing and education, recreational and health facilities but some councils are increasingly failing to invest this cash into the services that so desperately need it. 'Investment in new housing delivery brings unrivalled economic and social benefits to communities but too many of these advantages are going unseen by local people. With the government desperate to find money to invest in infrastructure to drive growth, it is nonsensical to have billions sat in council bank accounts. 'Furthermore, a lack of infrastructure provision is often cited as a reason to oppose development, yet this pipeline of billions of pounds of unspent infrastructure funding is too often underappreciated in debates about the impact of new development.'
BBC News
27-04-2025
- Business
- BBC News
Another 70 homes added to new Melton Mowbray development
A developer has been given the green light to build a further 70 homes as part of a wider housing project in a Leicestershire approved the scheme off Lake Terrace in Melton Mowbray despite developer G S Property Holdings telling the committee it cannot afford to contribute to health, education and other services through a Section 106 County Council and the NHS have said they need roughly £2m to pay for the infrastructure and services the residents in the homes will new homes will include 10 affordable bungalows, with the rest of the properties to be sold on the open market. A viability report showed the developer could not afford to make financial contributions to infrastructure and services due to the "significant abnormal costs" of developing the site, the Local Democracy Reporting Service a previous meeting, a planning agent speaking on behalf the developer said the company would give the borough and county council £580,000 as part of a financial agreement known as an overage payment should planning permission be granted. 'Catch-22' The committee on Melton Borough Council voted in December to defer its decision to allow planning officers time to investigate alternative sources of funding which might enable the developer to make a S106 contribution. In a report, planning officers said there were two grants the scheme would be eligible for – but the grants can only be applied for once planning permission is already in place, and even then, the applications might be Siggy Atherton described the situation as a "catch-22", and said the developer would win "hands down" at appeal should it be she added: "Travelling through Melton this last couple of mornings, it's mayhem. With more households having at least two cars – that's just [the impact] on the roads without thinking schools, doctors."
BBC News
17-04-2025
- Business
- BBC News
Medway Council has nearly £20m in unused funds from developers
A local authority is sitting on almost £19.5m of unused funds meant for health, education and leisure Council has received the contributions from developers which were granted planning permission, as reported by the Local Democracy Reporting Service (LDRS).Their payments, called Section 106 agreements (S106), are sums given to support projects to benefit the community and limit the impact of new houses.A spokesperson for Medway Council said: "The S106 team keep all potential and received contributions under review and work with the relevant services within the council, the NHS and other third parties to identify suitable projects that can utilise S106 funds." After an agreement, developers can then begin work and pay the contributions when they reach a certain point in the construction Freedom of Information (FOI) requests submitted by the LDRS show issues with money getting to where it was initially report revealed as of December, the council held £4m of S106 cash for schools and education, £3.1m for community centres and museums, and £5.3m for open the £4m agreed with developers since 2013, just £1.2m has been collected with only £17,846 total, funding from 40 different agreements has been received by Medway Council, but only two projects have actually seen money spent. A £9,446.36 sum from a 2014 agreement for development on Richmond Road, Gillingham, was used for "healthcare services".The report also revealed another £8,400 was spent from a £9,197.96 agreement from 2020 for a development in Twydall, which was used for a health pod in the Woodlands Family Practice, LDRS reported the largest S106 contribution collected for a single development was £180,869.99 for a 300-home scheme on land at Otterham Quay Lane, was agreed for improvements to GP services at the Rainham Healthy Living Centre, the Thames Avenue Surgery or the Maidstone Road LDRS reported none of the money has been spent yet. Out of the five towns and Hoo Peninsula, Chatham is the place with the most health-based S106 funding currently held by the council, which is £406, LDRS added if the fund was not spent by a certain deadline, the developer could request the money be range between five and 10 years but Medway Council said it had never had to return any another FOI submitted by the LDRS revealed £175,000 of S106 funding agreements for health projects was allowed to expire before the money was collected by the council. Medway Council chief planning officer Dave Harris told the LDRS the issue of getting the NHS Kent and Medway Integrated Care Board (ICB) to request the funds collected "had been a long-term frustration".He said the council was having regular meetings with the ICB to discuss how to use the available funds as the local authority was unable to spend the money on services ICB spokesperson said: "We request S106 funding when there is an identified and approved project to allocate the funding to."Where we have an opportunity to pool S106 funding contributions, we will sometimes do so where appropriate."The spokesperson added there can be a "significant lag" between the S106 contribution being secured, the development and getting to a point when the contribution is due."Due to the time lag, the ICB may consider a different project from that proposed originally is required and we will discuss this with Medway Council," they added.
