Decision details

S106 Developer Contributions Update

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: No

Purpose:

A report detailing the latest position for WCC with S106 Developer Contributions

Decisions:

Janet Neale summarised the published report. The last report predicted that the community infrastructure levy (CIL) funding would be implemented across the county by 2018 but it has only been implemented in Stratford-on-Avon and Warwick District. Janet Neale stated that the total amount of obligations contained within live S106 agreements as at 2019/20 is £304m which shows rapid development. She concluded that there are many different developments and they need to ensure they met the requirements for the S106; there will be a report for them by the end of the year.

 

In response to the Chair, Janet Neale stated that developers are rarely asked to contribute funding upfront as the developer needs to make money and the land is worth more after development.

In response to Councillor Andy Jenns, Janet Neale stated that it is up to the district and borough councils if they wish to roll out S106. She continued that boroughs usually wait until their local plan is developed as they cannot assess infrastructure cost. If the local council has adopted a Neighbourhood Plan, 25% of any CIL income collected in that area goes directly to them. If a local council does not have plan, they can get 15% on any CIL income which is capped at £100 per dwelling.

 

Janet Neale stated they have been working with the council’s debt recovery regarding developers who do not pay S106 contributions on time; they contact developers 10 days before they are invoiced, and this cuts out some of the deadline.

 

Janet Neale agreed to circulate the breakdown spreadsheet for any councillors who wish to see it.

 

In response to Councillor Kondakor, Janet Neale replied that one reason for the differences in funding from education contributions across the county was the amount of school capacity in different parts of Warwickshire. Funding could only be secured if additional capacity was needed, which was now the case in the north of Warwickshire.

 

Resolved

That the Communities Overview and Scrutiny Committee notes the contents of the report and the current position relating to Section 106 and Developer Contributions.

 

Report author: Janet Neale

Publication date: 25/02/2020

Date of decision: 12/02/2020

Decided at meeting: 12/02/2020 - Communities Overview and Scrutiny Committee

Accompanying Documents: