On this page:

Modernising the Planning System

« Previous | Contents | Next »

Listen

07: Financial Impacts

Financial Impacts Lead PhotosAs with any reform package, this set of proposals will generate costs and savings. An effective, efficient planning system which is more proportionate in its focus should have a highly beneficial impact on the wider economy. Developments contributing to the national infrastructure will be planned proactively, taking a long-term view, and thereby increasing certainty for all stakeholders. Applications for major developments, helping to deliver sustainable economic growth, will be expedited by planning authorities. Fee scales will be set to take into account the costs to the local authorities of handling major applications. Fewer small-scale developments such as home improvements will be subject to development management scrutiny, allowing a saving on resources currently expended on the processing of these applications, and creating time for professional planning officers to focus on more substantial applications. The precise impact of these changes on the national economy will always be difficult to quantify. The Executive will, however, monitor the impact of planning reform, including its economic consequences.

There will be impacts on resources for central and local government. In particular, we anticipate changes to the way in which planning authorities operate, and we will be discussing the financial impacts of the new system with local authorities.

Local Authorities

The reforms that we consider likely to generate most efficiency gains, releasing resources for planning authorities to use to deliver other improvements, will be:

  • the extension of permitted development rights, and consequent removal of a number of applications for minor development from the planning system;
  • raising the level of fees payable to local authorities for major applications to reflect the cost of processing them more closely;
  • removal of the need for two tiers of development plan across most of Scotland, reducing the number of strategic development plans from 17 to 4;
  • speeding up plan preparation by replacing the current two stages of draft and finalised plans with one proposed plan; and requiring the preparation of shorter and more focused local development plans that are fit-for-purpose;
  • using model development plan policies and preparing supplementary guidance for certain topics to speed up further plan preparation;
  • agreeing the principle for development on land allocated in a local development plan, simplifying the development management process, and creating time for local authorities to focus on the design quality of development proposals; and
  • replacing the appeal to the Scottish Ministers with a decision review process so that planning authorities can rely on existing reports rather than preparing fresh precognitions.

There will also be some new costs generated for planning authorities:

  • in fulfilling the statutory requirement to update development plans to a shorter and more regular timescale, and requiring more regular development plan examinations;
  • in undertaking neighbour notification for planning applications, and for new site specific proposals in local development plans;
  • in operating the new system of appeal tribunals where decisions have been taken at an officer level; and
  • in more pro-active use of enforcement powers.

Scottish Executive

There will also be implications for central Government resources, both for the Scottish Executive Development Department ( SEDD) and for the Scottish Executive Inquiry Reporters Unit ( SEIRU).

The reforms that will generate most efficiency gains and additional savings for the Scottish Executive will be:

  • the introduction of appeal tribunals to hear appeals on a range of local developments, rather than SEIRU;
  • the removal of a tier of development plans (structure plans) in all but the four city regions ( SEDD currently has a role in processing their approval by Ministers);
  • the early determination of a range of appeals (savings for SEIRU in hearing fewer appeals, but costs for SEDD in doing the assessment work);

The reforms that will generate most new costs will be:

  • an increase in the number of cases notified to, and possibly subsequently called-in by, Ministers as a result of changes to the process, in particular for national developments, major developments and those applications attracting enhanced scrutiny;
  • the assessment work with regard to the early determination of the merits of appeals: an increase in costs for SEDD (but, as noted above, reduced costs for SEIRU in hearing fewer appeals);
  • more frequent updating of local development plans, requiring reporters to conduct examinations;
  • the mandatory requirement for the examination of strategic development plans in the four city regions, to be jointly funded by the Authority and SEDD;
  • an enhanced audit function for SEDD to monitor planning authority performance;
  • generation and monitoring of model policies by SEDD;
  • a role for reporters in assessing the quality of stakeholder engagement by planning authorities, in both development planning and development management; and
  • enhanced role and status of the National Planning Framework.

In the longer term, the introduction of new 'e-planning' procedures will help planning authorities, applicants, consultees and other interested parties move from time-consuming paper based systems to more efficient electronic working. Online access to planning information and services reduces the cost of people engaging with the planning system. In the longer term, prudent use of information and communications technology will reduce costs for planning authorities by improving business processes and speeding up the processing of planning applications.

« Previous | Contents | Next »

Page updated: Monday, June 27, 2005