The Scottish Government

« Previous | Contents | Next »

Listen

CHAPTER FOUR - THE NUMBER AND VALUE OF PLANNING AGREEMENTS IN SCOTLAND 2004-2007

Number of Planning Agreements

4.1 Over the study period a total of 871 planning permissions are known to have been linked with a planning agreement providing one or more developer contributions. This is shown in Table 4.1 below. In addition there are likely to have been other planning permissions linked with planning agreements entered into by the 6 authorities that did not respond to the study team. It is estimated that this could account for at least a further 150 agreements over the period giving an overall total of 1021 planning permissions linked with an agreement . This estimate is based on the number of major planning permissions (defined in para 4.4 below) which, according to returns to the Scottish Government, were granted by those authorities during the study period and were linked to a s75 agreement (See Table 4.2). As these returns do not record the number of s69 or s48 agreements entered into over the same period, the figure of 1013 permissions linked with an agreement is still likely to be an underestimate. Further, details on methodology for estimating 'missing' agreements are given in Appendix 2.

4.2 Of the authorities who responded to the study team only 2 (Shetland and Comhairle nan Eilean Siar) did not enter into any agreements during the period. The three authorities that entered into most agreements over the period were Scottish Borders (173), Edinburgh (163) and Glasgow (126). Collectively these three accounted for just over half of all agreements entered into by those authorities who responded (53%). Overall the trend in the use of agreements appears to be upwards with the most notable increase being in Scottish Borders. However, there is also considerable variation in the pattern from authority to authority. For the reason of incomplete returns explained in paragraph 3.9 above, the Edinburgh figure is considered to represent an underestimate of the total number of agreements entered in by that authority during the study period.

Table 4.1: Number of Planning Permissions reported to be linked with Developer Contributions by Authority and Financial Year

Notes to table
* No return made
+ Responded but insufficient details given to identify whether any direct contributions secured.
x Return known to be incomplete so figures may not include all contributions secured during study period.
(Source: Analysis of the Stage 1 returns from the 28 local authorities who responded to the study team.)

Table 4.2: Number of s75 Agreements linked with Major Planning Permissions 2004/05-2006/07 for the six Planning Authorities that did not provide information for this study

Notes to table
(Source - Analysis of Planning Application Survey Returns provided to Scottish Government)

The Proportion of Planning Permissions linked with a Planning Agreement

4.3 As shown in Table 4.3 the total number of planning applications submitted annually varied significantly over the study period but was less in year 3 than in year 1. As the number of planning agreements has increased over the same period, this suggests that the trend in the use of agreements is increasing proportionately as well as numerically. The proportion of applications approved was more consistent, however, ranging from 91.4% to 92.7% (Source: Planning Performance Statistics 2004-2007, Scottish Government). It is therefore concluded that the proportion of all planning permissions linked with a planning agreement is extremely low (less than 1%).

Table 4.3: Number of All Planning Applications Submitted Each Year by type of Development

Notes to table
(Source - Analysis of Planning Application Returns provided to Scottish Government)

4.4 If the figures in Table 4.3 are adjusted to remove eventual permissions for householder and other minor developments, listed building and conservation area consents, hazardous substances consents and other consents and certificates, the proportion linked with agreements rises but is still in low single figures (see Table 4.4). While statistics held by the Scottish Government show that there have been s75 agreements linked with some of these minor types of application, it considered reasonable to assume that these are likely to have been restrictive/regulatory agreements rather than involve a developer contribution. For example, a householder application for a house extension is unlikely to require a developer contribution but may be subject to a s75 agreement designed to ensure that it is used as a 'Granny Flat' or to restrict further development on the plot.

Table 4.4: Number and Proportion of All Planning Permissions Granted Each Year Excluding Householder and Other Minor Developments Compared with the Number of Planning Permissions Reported to be linked with a Planning Agreement

Notes to table
* Includes 63 permissions for which the year was not indicated.
(Source: Analysis of planning application returns held by the Scottish Government and of the Stage 1 returns from the 28 authorities who responded to the Study Team.)

4.5 An exception to this picture is the number of planning permissions for major housing developments (defined by the Scottish Government as developments of 10 or more dwellings) which are linked with a developer contribution. In 2004/05 11% of applications granted were linked to an agreement and this has risen to 17% in 2006/07. This information is shown in Table 4.5.

Table 4.5: Number and Proportion of Planning Permissions Granted for Major Housing Developments Linked with a Planning Agreement by Year 2004/05-2006/07

Notes to table
(Source: Analysis of Planning Application returns held by Scottish Government and of the Stage 1 returns from the 28 local authorities who responded to the study.)

Numbers of Separate Contributions

4.6 While most agreements provide for a single developer contribution, it is common for planning authorities to secure more than one contribution in a single agreement. As illustrated in Table 4.6, 1263 separate contributions have been identified, secured through planning agreements, over the study period. The City of Edinburgh agreed most separate contributions (232) followed by Scottish Borders (186), Aberdeenshire (137), City of Glasgow (131) and Midlothian (90). In fact, these 5 authorities between them account for 61% of all contributions. As there have been 1263 contributions from 871 agreements, this implies that the average number of separate contributions linked with a single planning agreement is 1.5.

Table 4.6: Number of separate contributions secured by Year and by Authority

Notes to table
* No return made
+ Responded but insufficient details given to identify whether any direct contributions secured.
x Return known to be incomplete so figures may not include all contributions secured during study period.
(Source: Analysis of the Stage 1 returns from the 28 local authorities who responded to the study team.)

4.7 Scotland-wide, the number of contributions appears to be increasing annually, from 295 in 2004/05 to 451in 2006/07. However, there has been considerable variation at individual planning authority level. The most notable increase in the number of contributions has been inScottish Borders Council, rising from 5 in 2004/05 to 119 in 2006/07 as a result of a contributions regime introduced during the period towards the Waverley Railway line scheme. Over the same period, the trend in Aberdeenshire appears to have been significantly downwards.

Direct financial and in-kind contributions

4.8 The majority (84%)of contributionsinvolved financial payments rather than in-kind contributions. This is illustrated in Tables 4.7 and 4.8 below.

Table 4.7: Numbers of Direct Financial Contributions by Authority and Year

Notes to table
* No return made
+ Responded but insufficient details given to identify whether any direct contributions secured.
x Return known to be incomplete so figures may not include all contributions secured during study period.
(Source: Analysis of the Stage 1 returns from the 28 local authorities who responded to the study team.)

Table 4.8: Numbers of Contributions from all Types of Agreements which are In-Kind

Notes to table
* No return made
+ Responded but insufficient details given to identify whether any direct contributions secured.
x Return known to be incomplete so figures may not include all contributions secured during study period.
(Source: Analysis of the Stage 1 returns from the 28 local authorities who responded to the study team.)

Value of direct financial contributions

4.9 The total value of the 1058 reported direct financial contributions secured over the study period was almost £86.6m (see Table 4.9). The annual total has risen from £9m in 2004/05 to £44.4m in 2006/07. The average amount per direct contribution is £82,000.

Table 4.9: Value of Direct Financial Contributions by Financial Year and Authority.

Notes to table
* No return made
+ Responded but insufficient details given to identify whether any direct contributions secured.
x Return known to be incomplete so figures may not include all contributions secured during study period.
(Source: Analysis of the Stage 1 returns from the 28 local authorities who responded to the study team adjusted where appropriate during Stage 2 assessment.)

Value of in-kind contributions

4.10 The total estimated value of in-kind contributions is just over £30m (see table 4.10).This does not include the 78 in-kind contributions for which insufficient information has been provided to be able conduct a valuation.As the average value of an in-kind contribution is £237,600 this suggests that the total value of these 78 could be around £18.5m, giving an overall estimate for the total value of reported in-kind contributions over the period of £48.5m.

Table 4.10: Value of in-kind Contributions that it has been possible to value

Notes to table
* No return made
+ Responded but insufficient details given to identify whether any direct contributions secured.
x Return known to be incomplete so figures may not include all contributions secured during study period.
Note: These figures include contributions which have been assessed as being of no financial value (shown as £0). Where no in-kind contributions need sourced this is also shown as £0.
(Source: Analysis of the Stage 1 returns from the 28 local authorities who responded to the study team adjusted where appropriate during Stage 2 assessment.)

Combined Value of financial and in-kind contributions

4.11 The combined value of direct financial and in-kind contributions that it has been possible to value is £116.6m (combination of totals in Tables 4.9 and 4.10 above). In paragraph 4.10 above it is also suggested that the value of the in-kind contributions that it has not been possible to value could be around a further £18.5m giving an overall estimated value for all contributions reported to the study team of £135.2m This excludes the agreements that are likely to have been entered into by authorities who did not provide a response. At paragraph 4.1 above it is suggested that the combined number of planning agreements that may have been entered into by those authorities could be 150. It is also suggested that the average number of contributions per agreement is 1.5 giving a potential 225 separate contributions. Estimates of the value of these are given in Table 4.11. The methodology used is explained in Appendix 2. It is therefore estimated that the total value of all contributions secured throughout Scotland during the study period could be around £159.1m.

Table 4.11 Actual and Estimated Value of All Contributions Secured by all Scottish Local Planning Authorities 2004/05 to 2006/07

Notes to table
* See Appendix 2 (table A2.4) for explanation of how estimated.
(Source: Analysis of the Stage 1 returns from the 28 local authorities who responded to the study team adjusted where appropriate during the Stage 2 assessment and analysis of planning applications returns held by the Scottish Government.)

Planning Contributions by Development Type

4.12 Of the 1263 separate contributions identified, almost 75% are linked with a housing development. In a further 20% of cases insufficient information has been given on the type of development to which the contribution is linked. The remaining 5% of contributions identified are linked with a range of commercial uses with none particularly significant.

4.13 It is possible that the low representation from development types other than housing is explained by much lower numbers of applications that are of a scale likely to generate contributions. While the Scottish Government's categorisation of applications does distinguish between major and minor commercial developments, the threshold for major is only 1000 sq m. In addition, there is no distinction between applications for new build projects (which may be more likely to generate contributions) and other works such as extensions and other alterations which may less likely to do so.

Legal Mechanism Used

4.14 According to the available evidence there was only one agreement to secure a contribution under s48 of the Roads (Scotland) Act 1984 during the study period. Half of the authorities who have secured contributions only used agreements under s75 of the Town and Country Planning (Scotland) Act 1997. The other half used both s75 agreements and agreements under s69 of the Local Government (Scotland) Act 1973. The total number of s75 agreements entered into annually has not varied to a great extent over the period. However, there is substantial variation in the numbers from year to year at individual planning authority level (see Table 4.12). While the number of s69 agreements (see Table 4.13) has risen substantially, the majority (77%) were secured by just two authorities - City of Glasgow and Scottish Borders - who have developed formula based policies for open space contributions and for contributions to a railway project, respectively. Nevertheless, the numbers of authorities using s69 agreements rose over the period. Five authorities - Glasgow, North Lanarkshire, Scottish Borders, Stirling and West Lothian - the entered into more agreements under s69 than under s75. There are 4 applications linked with both s69 and s75 agreements, involving Midlothian (2), South Lanarkshire (1) and West Lothian (1) Councils.

Table 4.12: Number of Planning Applications linked with a S75 Agreement by Financial Year

Notes to table
* No return made
+ Responded but insufficient details given to identify whether any direct contributions secured.
x Return known to be incomplete so figures may not include all contributions secured during study period.
(Source: Analysis of the Stage 1 returns from the 28 local authorities who responded to the study team and Stage 2 Assessment.)

Table 4.13: Number of Planning Applications linked with a S69 Agreement by Financial Year

Notes to table
* No return made
+ Responded but insufficient details given to identify whether any direct contributions secured.
x Return known to be incomplete so figures may not include all contributions secured during study period.
(Source: Analysis of the Stage 1 returns from the 28 local authorities who responded to the study team and Stage 2 Assessment.)

4.15 The growth in the significance of s69 agreements is demonstrated in Table 4.14. In 04/05 the majority of agreements were under s75 but by 06/07 it is s69 agreements which form the majority.

Table 4.14: Number of Planning Applications linked with Developer Contributions by Agreement Type and Financial Year

Notes to table
(Source: Analysis of the Stage 1 returns from the 28 local authorities who responded to the study team and Stage 2 Assessment. )

4.16 Using the information contained in Tables 4.15 and 4.16 it is possible to compare the total values of direct financial contributions secured by s75 agreements with those secured under s69 and also the type of contributions involved. These show that in overall financial terms the sums secured under s75 agreements tend to be considerably greater than those secured under s69. Furthermore this has held true throughout the study period. Some authorities indicated that they use s75 agreements when securing large contributions and when securing payments phased over various stages of the lifetime of a major development project.

Table 4.15 Value and type of direct financial contributions secured through s75 agreements

Notes to table
(Source: Analysis of the Stage 1 returns from the 28 local authorities who responded to the study team and Stage 2 Assessment.)

Table 4.16 Value and type of direct financial contributions secured through S69 agreements

Notes to table
(Source: Analysis of the Stage 1 returns from the 28 local authorities who responded to the study team and Stage 2 Assessment.)

Conclusion

4.17 The Stage 1 survey of planning authorities, together with data held by the Scottish Government from planning authority returns, has allowed a picture to be built up of the number of individual developer contributions (1263) and their value (£159.1m) made over the 3 year period through the medium of legal agreements. Certain benchmarked assumptions have been made with regard to the 6 non responding authorities, to enable a Scotland wide assessment to be made.

« Previous | Contents | Next »