If you pay planning application fees, or are a planner whether private or public sector, you may feel somewhat cheated by the Government’s 25 July 2023 response to its February 2023 technical consultation Stronger performance of local planning authorities supported through an increase in planning fees.
The development sector has made it clear for a long time that it is generally willing to pay more to planning departments by way of increased planning application fees if the money enables those departments to be better resourced. Accordingly there was widespread support for most of the proposals within the consultation paper. The whole thrust of the consultation paper was that the government accepted that “local planning authorities need more resource in order to perform their critical social, economic and environmental functions on planning effectively”. Also that the government was “only prepared to introduce fee increases if planning performance also improves. We want to ensure that all applicants experience a high-quality and timely service. This consultation therefore also proposes a new approach to how the performance of local planning authorities is measured across a broader set of quantitative and qualitative measures. This will provide greater transparency of service delivery and earlier and more targeted support to local planning authorities where needed.”
Obviously significant increases in planning application fees would not be likely to lead to improvements in the operation of the system, and indeed would simply place a more onerous financial burden on applicants, if the additional income were not ringfenced to be spent on maintaining or improving planning services. Whilst improved performance may not all be about money, when it comes to significant hikes in planning application fees, more money, better services, that’s the quid pro quo.
The consultation document addressed the issue directly:
“The purpose of planning application fees is to enable a local planning authority to perform the statutory function of processing planning applications. However, we recognise that planning budgets are not ringfenced which means that planning fees often can be diverted as part of a wider corporate budget priorities to support other council services. This can limit the benefit of any increase in planning fees.
To ensure that the proposed additional fee income directly supports increased resourcing of local authority planning departments, it is sometimes suggested that planning fees should be ringfenced to planning services only. This would enable direct improvements in service delivery but does undermine the general flexibility afforded to local authorities on their wider financial management. We are seeking views on whether the additional income arising from the proposed fee increase (35% for major applications, 25% for all other applications) should be ringfenced for spending within the local authority planning department. Past increases have required a written commitment from all local planning authorities in advance of implementation.”
The question was asked:
“Question 7. Do you consider that the additional income arising from the proposed fee increase should be ringfenced for spending within the local authority planning department?
Yes/no/don’t know. Please give your reasons.”
The response document sets out the significant increases that are to be introduced by way of draft Regulations laid before Parliament on 20 July 2023 – basically:
- Application fees for major development (broadly speaking 10 dwellings or more or if non-residential 1,000 sq m or more) to be increased by 35% and for other forms of development by 25%.
- Annual inflation indexation from 1 April 2025.
- Removal of the “free go” (for repeat application within 12 months).
The response document records that the responses to the consultation document were “generally very supportive of the measures to increase planning fees, recognising the importance of securing additional income for local planning authorities”. But hang on! Look at the response to question 7, as to whether the additional income should be ringfenced for spending within the local authority planning department:
“A total of 457 respondents answered this question. There was strong support for this proposal to ringfence the additional income generated by the increase in fees. 88% agreed with the proposal, 8% did not and 4% didn’t know.
Respondents considered that ringfencing was needed to justify the increase in fees and to ensure the additional resources directly lead to improvements in performance. The extra income could be used to expand planning teams (by providing higher salaries to attract planners from private sector, training and development of planners) and improve IT systems. Many suggested that all fee income should be ringfenced for planning. On the implementation of ringfencing, others commented that resources were needed across other areas of the local authority which provided input into planning decisions, including highways, environmental health, ecology, design, drainage and heritage, so any ringfencing conditions needed to be flexible enough to allow these to be funded too.
Those who did not agree were concerned that ringfencing removed flexibility over spending decisions from local authorities. Some were concerned that ringfencing could be difficult to implement and monitor. Some considered that local planning authorities may not end up with more resources if the projected additional fee increase was netted off the baseline budget.”
88% per cent in favour. A no brainer in the circumstances one would think.
The Government’s response?
“We welcome the strong support for this proposal. We want to ensure that the fee increase results in additional funds being available to local authority planning departments, but we will not take ringfencing forward through legislation as this would impose a restriction on local authorities when they are best placed to make decisions about funding local services, including planning departments. However, we would expect local planning authorities to protect at least the income from the planning fee increase for direct investment in planning services.”
No ring-fencing. It will be left to local authorities to make that decision..
This is hugely unfair. It is unfair on local authorities with severe financial constraints such that they will need to consider whether they can afford to ringfence these monies on a voluntary basis or to use them to maintain other statutory services. No doubt heads of planning will have a limited say in that particular tug of war. It is also unfair on applicants because this significant hike in fees was to secure stronger performance from local planning authorities (see the very name of the consultation document!) – that is the only reason why it was supported.
The other important element of the proposals consulted upon was the proposed introduction of a series of new detailed metrics against which local planning authority performance can be measured. Whilst I recognise that the information gathering in itself would have been onerous, we know that what’s measured does get valued and the statistics would be useful both internally within authorities (so as to make the case for better resourcing) and externally to drive better performance. The government’s response again is in my view rather a cop-out:
“In relation to planning performance, we are grateful for the wide range of comments that have been received, relating to how we can better assess the speed of decision-making through both amending existing metrics and introducing new ones, and in response to proposed new quantitative metrics which could allow performance to be measured more widely across a range of important planning functions. We are also grateful to hear a range of feedback on our proposals to introduce qualitative metrics, including customer experience, which could capture a more holistic picture of the quality of service delivery within planning departments. This feedback is highly valued and will be drawn upon as we develop our proposals for a new planning performance framework.
We are clear that an increase in planning fee income and resourcing to local planning authorities must lead to improved performance. It is our intention to introduce a new planning performance framework once we have increased planning fees and invested in supporting the capacity and capability of planning departments. However, we recognise that local planning authorities need a period of adjustment to any new planning performance framework, and we would reiterate our commitment to consult further on detailed proposals, including thresholds, assessment periods and transitional arrangements from the current performance regime.”
There is no reason why performance measurement should not start now – let’s get to the bottom of how bad the problems currently are. It’s almost as if the Government doesn’t want to find out…
I know the Government will point to different funding streams it is making available to support capacity and capability in planning departments, for instance to the statement in Michael Gove’s long-term plan for housing 24 July 2023 announcement that the government is taking other steps to “unblock the bottlenecks in the planning system that are choking and slowing down development, and stopping growth and investment by:
- Launching a new £24 million Planning Skills Delivery Fund to clear planning backlogs and get the right skills in place.
- Establishing a new “super-squad” team of leading planners and other experts charged with working across the planning system to unblock major housing developments, underpinned by £13.5 million in funding. The team will first be deployed in Cambridge to boost our plans in the city, before also looking at sites across our eight Investment Zones in England, to provide high-quality homes to go alongside the high-quality jobs being created there.”
That is cautiously welcomed. But it does not change my three conclusions:
- Personally I think that the “no ringfencing” decision should be re-considered.
- Surely we need better performance metrics now, not some time in the indeterminate future
- There really does appear to be little point in responding to Government consultation processes when a 88% response one way or the other ultimately counts for nothing (and when perhaps a substantial proportion of the 88% would have responded differently to the questions about application fee increases if the assumption had been that the increases would not be ringfenced).
Plenty of quids, no pros.
Final thought – the Government has previously floated, in Planning for the Future, the idea of introducing planning appeal fees. Personally, my view is that if the fees genuinely increased resources and sped up the system, why ever not? Nothing else comes free.
Simon Ricketts, 1 September 2023
Personal views, et cetera
Image courtesy of Christopher Bill via Unsplash
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