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The research provides an initial independent assessment of the resource implications of the Planning reform proposals contained in the Planning White Paper Modernising the Planning System (June 2005), relative to the resource burden of the existing Planning System in Scotland. The assessment follows Arup's Resources for Planning (2005) study.

Main Findings

• The reform proposals are estimated to have an effect of increasing the costs of the Planning Service in Scotland by about £261,000 per planning authority, or £8.9 m across Scotland, relative to the cost of providing the planning service at the current level of resource allocation which is estimated to be £98.3m per year.
• Many of the reform measures will allow the system to be operated more efficiently and expeditiously, but the cost saving effects will be offset by the increased regularity of plan reviews and performance improvements (quality and speed) in determining applications which will require additional resources.
• It is important that the additional cost estimates are considered in the context of the findings of Arup's Resources for Planning study that the planning service has not been given the resource priority it has needed to operate effectively in recent years.
• The extent of the additional resources required to bring the current system up to an acceptable level are authority specific and to some extent reflect the priority that has been given to Planning within Scottish Authorities in recent years, and are difficult to identify without detailed study and benchmarking of each and every authority.
• Undoubtedly, there is a case for improving the resources available to the planning service. Raising fees payable for applications represents one method of increasing resources for the Planning service without recourse to the public purse. Additional resources for some of the Planning reforms may also be found from existing resources where authorities are able to focus on statutory planning and introduce more effective performance management.

Research Summary

1. National Developments and the National Planning Framework ( NPF) The research has examined proposals aimed at the delivery of national development priorities within planning, including the articulation of national strategic development priorities in the NPF, and new procedures for cross-departmental co-ordination and Parliamentary scrutiny. The overall cost effect on planning authorities is thought to be fairly marginal relative to existing arrangements.

2. Development Planning It is estimated that the new requirements for development planning equate to one additional middle ranking staff member per authority. Including local authority overheads this equates to around £3.3m across the system as a whole, or on average of £100,000 per authority per annum. Assistance in funding these resource requirements might be indirectly derived through increases in planning application fees. Application fees do not currently cover the full cost of processing fee-related activities for planning applications. As such, the cost is in effect subsidised by the general planning budget. If fees were to be brought into line with costs, then resources would be freed up to increase the focus on plan-making, and would also narrow the gap in resources typically allocated to both activities.

3. Major Developments The resource effects of reforms directed at handling large-scale and/or contentious applications has been examined including increased fees, timetables for processing applications, return of fees for applications not processed within deadlines, hearings, and requirements for pre-application consultations.

In general it is concluded that these initiatives offer the prospect of increasing the overall quality of decisions and improving the service for applicants. Views from developers, expressed in the Resources for Planning study suggest that this group are willing to pay higher fees for a better quality service. The cost associated with increased development control / management productivity is thought to be between £2.9m and £3.8m including both management and case officer time. This would be in part offset by increasing fees to bring them closer to full cost recovery.

4. Local Developments The research has considered proposals aimed at increasing local autonomy within the planning system including delegation of routine applications for local development to officers, and appeals against officers' decisions heard by a local review body appointed by the planning authority. Within this one proposal there is potential for modest time/cost savings as well as potential for significant increases in time/cost requirements.

5. Improving Development Management Efficiency The research report has looked at proposals aimed at speeding up the determination process and reducing the process-based burden on authorities. Several measures offer potential for increased performance through both reduced administrative burdens and/or through time savings, which are thought to translate into an accelerated work rate rather than a reduction in resource requirements. Such reforms should have a positive effect in reducing the time/cost requirements when considered on a 'per application' process, and so should translate into performance improvements where authorities are already deploying resources efficiently. It is important that authorities reflect new or altered requirements in the mix of skills within the authority, i.e. in the case of monitoring and reviewing Tree Preservation Orders and in successfully deploying e-planning infrastructure.

6. Minor Developments Planning Authorities are likely to see a decrease in the number of planning applications freeing up resources to boost performance based on a lighter caseload. Improved guidance to Householders should reduce the volume of queries in the long term. Loss of fee income must also be considered.

7. Inclusion In terms of widening public involvement and the quality of public participation in the planning process, overall, the proposed set of reforms would have the effect of greatly increasing potential for inclusion and increase awareness and public participation in the planning process. The greatest resource requirement on local authorities is likely to be through issuing neighbour notifications in relation to development planning and planning applications. This could reasonably be covered through fee increases in order to approach full cost recovery.

8. Enforcement The reforms to the enforcement system, in shifting from a reactive service to a proactive one would require additional resources. While increased fees for retrospective applications might help to fund this, it remains unclear where any other resources required could come from.

9. Supporting Planning Authorities The research has examined the possible impact of proposals relating to auditing and supporting local authority performance. This measure is likely to lead to improved performance and as such could increase the efficiency of the service and reduce costs. In practice, a more realistic scenario is that costs would remain unchanged. This is because one of the main determinants of good performance is adequate resources.

Overall, this reform is primarily concerned with organisation rather than cost/resource issues and so is cost neutral. However, increased productivity from 'smarter' working, coupled with up skilling as a result of investment through the Planning Development Budget should result in 'per unit' cost savings/efficiency gains.

10. Adequacy of existing resources Benchmark level of resources for Development Planning, Development Management and Enforcement are specified in the research report to provide a standard against which individual authorities may compare their resources. They are based on the consultants' view of the current system requirements in terms of the desirable range of planning activities and performance.

This means that if existing authority resources fall short of the benchmark requirements then, these resource deficiencies would also need to be addressed.

Conclusion

The general conclusion is that the reform proposals, if implemented, would largely have an effect of increasing the costs of Planning by about £261,000 per authority relative to the operation of the current system. This is because although many of the measures will allow the system to operate more efficiently, the cost saving effect will be offset by other requirements.

Additional costs arising from the reforms need also to be considered in the context that the current planning service has not been given the resource priority it has needed to operate effectively in recent years. Additional resources will be required to address this situation, particularly in terms of the current neglected areas including development planning, and enforcement.

Research Methods

The assessment is based on information provided by the Scottish Executive, previous research by Arup on the Planning Service in Scotland, the content of the Planning White Paper and other detailed work in Wales and England, the latter being valid insofar as the systems are similar. In all cases the estimates are based on this material and original survey returns by authorities in relation to their staffing levels and operating costs in the current system. Each reform proposal has been assessed under a consistent set of headings / criteria as part of a matrix-based assessment. The broad structure aimed to ensure comprehensive quantitative and qualitative assessment of time, cost, and skill resource impacts of each research proposal.

Dissemination

The research findings and research report are available on the Scottish Executive Social Research website, and circulated widely to stakeholders.

If you wish further copies of this Research Findings or have any enquiries about social research, please contact us at:

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If you wish a copy of "Planning Reforms: An Impact Assessment" the research report which is summarised in this research finding, please send a cheque for £5.00 made payable to:

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Fax: 0131 622 8258
Email: buiness.edinburgh@blackwell.co.uks

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