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CHAPTER ONE - INTRODUCTION
1.1 This report sets out the findings of a study commissioned by the Scottish Government to assess the value of planning agreements in Scotland. It looks at the economic and financial benefits accruing to the public sector through planning agreements over the past three financial years (2004-05, 2005-06 and 2006-07) and also forecasts revenues until 2010. The research is intended to inform changes that may be undertaken to current guidance on planning agreements (Circular 12/1996 "Town and Country Planning (Scotland) Act 1972: Planning Agreements").
Study Aims and Objectives
1.2 The principal aim of the study has been to obtain financial figures reflecting the value of benefits achieved under planning agreements for each of the last 3 financial years (2004/05 to 2006/07) and for the different categories of planning agreement.
1.3 A second aim is to use this data to forecast future revenues to 2010.
1.4 Additional objectives are to:
- Identify from all local planning authorities, as far as it is possible, the number of planning agreements across Scotland.
- To break down the data collected on the financial value of planning agreements by individual planning authorities. Some local authorities use planning agreements more intensively than others. Some of this variation will reflect differing land values, but it is likely that contrasting approaches and levels of expertise will also be factors.
- To identify any trends in the scope and conditions applied to planning agreements over the three year period (2004/05 to 2006/07) and use this as a basis for forecasting future revenues to 2010, assuming that the Planning Gain Supplement is not implemented. (During the study the UK Government confirmed that Planning Gain Supplement would not be introduced.)
- To identify best practice in order to see where planning gain is being derived from and what it is for. There are likely to be differences of opinion amongst developers and planning authorities as to what constitutes best practice in local use of planning agreements, but it was nevertheless considered to be useful for the research to explore this.
- To understand the value obtained through different aspects of planning agreements for affordable housing, roads infrastructure, schools contributions, environmental works and miscellaneous works and to consider the possible breakdown into direct financial and in-kind contributions received.
1.5 For the purposes of the study "planning agreements" are defined as agreements entered into "…for the purpose of garnering planning gain" under the provisions of the following legislation and with the planning authority only:
- The Town and Country Planning (Scotland) Act 1997 (s75);
- Local Government (Scotland) Act 1973 (s69); and
- Roads (Scotland) Act 1984 (s48). (excluding agreements with the Scottish Government).
1.6 The study has being conducted in two main stages as follows:
Stage 1 - Collection and analysis of information from all 34 planning authorities obtained through questionnaire returns and from the Scottish Government.
Stage 2 - In-depth analysis based on case studies of agreements, practice and policy in a sample of 11 planning authority areas together with a literature review.
1.7 The principal findings from Stage 1 are reported in Chapter 4. This provides information relating to the numbers, types and overall values of agreements secured over the study period and the trends in their use. Some agreements involve several different kinds of contribution, for example they might include a contribution to affordable housing and another towards education. As a result of this, it has been necessary to present some findings in terms of the number of contributions rather than the numbers of agreements.
1.8 The principal findings from Stage 2 are set out in Chapters 5, 6 and 7. Chapter 5 provides a detailed review of the values secured by different types of contribution. Planning authority practice in the use of agreements is assessed in Chapter 6 and finally forecasts of the values that may be secured to 2010 are provided in Chapter 7.
1.9 In compiling the information required for this study it has been necessary to rely on returns provided by each planning authority. While the response rate has been better than for some other studies (e.g. the equivalent English and Welsh studies on this topic - Department for Communities and Local Government, 2006 and Welsh Assembly Government, 2007), not all authorities have provided the information sought. Furthermore, in some cases where information has been provided it has been incomplete. In some cases it has been possible to use information obtained during the detailed case studies in Stage 2 to improve the information provided in Stage 1. However, the information provided remains incomplete. As a result of this, some estimates have had to be made to arrive at a Scotland-wide picture of the likely total number of agreements and overall values. More detailed elements of the analysis and conclusions have had to be based on partial returns and the figures provided and overall study findings need to be viewed in that context.
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