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SAC Report No. 11

Developer Contributions in Aberdeenshire

Summary

This report sets out the process, conclusions and recommendations of the eleventh investigation undertaken by the Scrutiny and Audit Committee.  The investigation was into developer contributions in Aberdeenshire.

The purpose of the investigation as described in the approved Terms of Reference was as follows:

Examine the current arrangements for developer contributions including:

  • When contributions are justified
  • How much should be contributed
  • How the distribution of contributions across services and facilities is established

Recommend any improvements

The investigation began in March 2006 and the Committee heard evidence from eleven internal and external witnesses interviewed during six evidence-gathering sessions.   The Committee considered the evidence and drew up its conclusions at a meeting on 3 May 2006.

Aberdeenshire Council’s approach to developer contributions is held up as an example of best practice amongst councils in Scotland.  The Council’s success in this field has brought significant benefits to Aberdeenshire residents.  Some £18 million pounds has been secured for investment in the public realm to alleviate pressures linked to new developments.  Improvements to infrastructure have been made which could not have been delivered in any other way.

Developer contributions have an essential role to play in the development control process with the important proviso that they should only be sought where they are required to make a proposal acceptable in land-use planning terms. Developer contributions are a relatively recent phenomenon and the field is still evolving rapidly.  Aberdeenshire Council needs to continue to innovate and develop its approach.  The Committee is confident, on the basis of the evidence heard, that it will.

The Committee is clear that detailed consideration of developer contributions must remain entirely separate from determining, on the basis of the land-use planning issues, any planning application.  However, community and elected Member input into what developer contributions are necessary is clearly essential.  Reconciling the need for consultation on developer contributions with the need for separation from development control is not easy – and the Council’s present arrangements for dealing with this tension have been less than wholly successful.  The Committee has no doubt that the Council can do better.  The key is to get meaningful engagement in setting detailed policies for developer contributions.  The Committee recommends the Council produces supplementary planning guidance on developer contributions.  This should be more detailed than the broad headings included in the Aberdeenshire Local Plan and give an indication of priorities.

Increased transparency is also desirable after developer contribution agreements have been reached.  Although the information is not secret, it is not readily available either.  There is scope for considerable improvement in notifying the agreed contributions and their use to the public, developers and Councillors.  There should be an annual report to each Area Committee so that Councillors can monitor the Council’s progress with delivering agreements.  The Council’s website should be used to make public information about developer contributions.  For all larger developments at least, it would be appropriate to provide a summary of the agreement reached indicating the nature of the developer contributions secured.

As more agreements are concluded and additional bank accounts opened, there is an increasing workload associated with dispensing the funding secured through developer contributions.  The seeking of developer contributions from smaller developments, down to single houses, clearly also has workload implications.  The Committee acknowledges that there will be resource implications if the Council accepts its recommendations on supplementary planning guidance and monitoring by Area Committees.  All this points to a need for additional staffing.  The Committee is aware that steps have been taken, in conjunction with Aberdeen City Council, to recruit and train additional staff and fully supports this.

The Committee agrees with the view that the widely used term ‘planning gain’ is inherently misleading.  Its use is an obstacle to getting increased understanding of what can and what cannot be paid for by developer contributions.  If the Council is to succeed in getting increased community engagement in setting its policies on developer contributions, it needs to stop using the term.  The ‘Planning Gain Co-ordinator’ needs to become the ‘Developer Contributions Co-ordinator’.

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