ANNUAL INFRASTRUCTURE FUNDING STATEMENT (IFS) 2019/20
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Introduction
This is the Brighton and Hove City Council Infrastructure Funding Statement (IFS) 2019/20. The aim of this statement is to provide an update on the Council’s Community Infrastructure (CIL) processes, an account of Section 106 (S.106) income and expenditure in 2019/20, in compliance with Regulation 121A of the CIL Regulation 2010 (as amended.)
The City Council is a Contribution Receiving Authority (CRA) because it receives developer contributions, which include S.106 planning obligations and CIL receipts (although the council only commenced implementation of CIL on 5th October 2020.)
The requirement for CRA’s to prepare an IFS was introduced by the CIL Regulations in 2019. The regulations state that no later than 31st December annually a CRA must publish an IFS which includes:
· An Infrastructure List (a statement of projects or types of infrastructure which the charging authority intends will be, or may be, wholly or partly funded by CIL;
· A report about CIL, in relation to the previous financial year (the “reported year”); and
A report about planning obligations in relation to the reported year.
The requirements for the type of information to be published in relation to CIL and planning obligations is set out in Schedule 2 of the CIL Regulations 2010 (as amended.)
About this Statement
The Brighton and Hove City Council IFS 2019/20 provides all information required under the CIL Regulations. It is supported by detailed planning obligation data in Appendices (I) – (IV). It also highlights the key infrastructure projects funded by developer contributions during 2019/20.
It should be noted that the Council adopted the Brighton and Hove City Council CIL Charging Schedule of May 2020 in July 2020, and it came into force on 5th October 2020. Therefore, because no CIL receipts were received in the “reported year”, this inaugural IFS will only provide details of S,106 income and expenditure, alongside the Council’s Infrastructure List.
The IFS is an important way of demonstrating how the council’s housing target, as set out within the City Plan Part One, is being delivered alongside developer contributions, which will be used to support the delivery of essential supporting infrastructure.
The CIL Guidance requires that IFS data is prepared in a specific digital format (using CSV files) for digital submission to the Ministry of Housing, Communities and Local Government (MCHLG) using a standard template. Due to the Covid -19 pandemic, the process for providing this data has not yet been finalised and further guidance from central government is awaited.
Therefore, although this IFS is accompanied by spreadsheets which support the S.106 totals reported, the publication of the IFS will be followed by three CSV files, which will also be published on the council’s website by 31st December 2020. They will also be submitted digitally to MCHLG once the processes have been established.
IFS 2019/20 – Key Headlines
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Brighton & Hove City Plan Part One (2016 -2030) · Adopted March 2016 · Aim to deliver 13,200 new homes and development by 2030 · The City Plan Part 1: ü Sets out a vision and objectives for the development and growth of Brighton & Hove up to 2030; ü identifies broad locations for development and allocates strategic sites and employment sites; ü Sets clear policies that guide decisions on planning applications; ü Indicates how the plan will be implemented and shows how progress will be monitored; ü Sets out the infrastructure requirements for the city up to 2030 and how these will be addressed. The Council’s Infrastructure Delivery Plan (IDP) sets out the infrastructure needed to support the development and growth of the city. It is a starting point for S.106 negotiations for all major developments and has formed the basis of the Council’s CIL Infrastructure List:
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Brighton & Hove City Council CIL The Council adopted its CIL Charging Schedule of May 2020 in July 2020 and it came into effect on 5th October 2020.
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Section 106 (S.106) In 2019/20, the council received a total of £8,866,182 from S.106 planning obligations. These sums are either directly related to specifically defined infrastructure projects associated with each planning permission (Appendix II) or delivered on site.
The council held £18,885,717 at the end of 2019/20, to be spent on either specifically defined infrastructure projects or citywide affordable housing developments.
In 2019/20, £2,046,485 was spent on projects including: · £821,000 for Affordable Housing site land provision for Frederick Street and Selsfield, Drive · £150,000 on Sports new 3G pitch at Portslade Sports Centre · In excess of £368,000 on Education upgrades for school facilities at Varndean and Dorothy Stringer schools. · Nearly £98,000 on Safer Routes walking and cycling improvements in Hangleton Further details are shown Appendix (III).
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Brighton & Hove City Plan Part One
Brighton & Hove City Plan Part One was adopted in March 2016. The Plan includes a target of a minimum of 13,200 new homes to be delivered in the city over the plan period to 2030. One of the main ways that the Council will achieve its ambitions for growth and development is through the delivery of high quality, sustainable homes and neighbourhoods. The plan will support the delivery of the right infrastructure to support growth at the right time. This will help create healthier places for people and reducing carbon emissions.
CIL will play an increasing role in making provision for a range of infrastructure projects to support development across the city. The Inspector’s Report into the examination of the council’s CIL charging schedule shows that, by 2030, a total of £366 million of investment in city infrastructure will be required. The council estimates that there will be a shortfall of approximately £95 million in funding this requirement. It is estimated that the new CIL charges will raise approximately £2 million per annum (£20 million over the period) towards this overall shortfall.
Following the implementation of CIL, S.106 has been scaled back but will still provide funding for site specific infrastructure requirements, the artistic component and the local employment training scheme.
S.106 is also the only mechanism to ensure that developments provide sufficient affordable housing to achieve the council’s policy requirements for 20% affordable housing as an equivalent financial contribution on sites of between 5 and 9 (net) dwellings, 30% on-site provision or financial contribution on sites of between 10 and 14 (net) dwellings, and 40% on-site provision on sites of 15 units or more.
Alongside S.106 and CIL, the council is also in receipt of grant funding from bodies such as the Local Economic Partnership and Transport for the South East.
The CIL Infrastructure List
The CIL Regulations (2019 Amendment) Regulation 121A requires the council to publish a statement of the infrastructure projects or types of infrastructure which the charging authority intends will be, or may be, wholly or partly funded by CIL
The list below gives an indication of what CIL receipts could be spent on. This list has been prepared based on the CIL examination documents.
It should be noted that there are infrastructure types listed on the CIL Infrastructure list which will also be funded through S106 obligations for strategic and “nil rated” sites. However, the contributions made through S.106 will be directly related to the impact of these developments on site (or immediately adjacent to), in accordance with Reg 122 of the CIL Regulations 2010.
For example, the strategic housing site at Toads Hole Valley is required and expected to make provision of a site for the development of a new secondary school in the city. However, other housing sites will also impact upon secondary education and therefore a proportion of future CIL receipts may also be spent on supporting secondary education alongside S.106 obligations.
The inclusion of a specific infrastructure type on this list does not commit the council to fund the project (either in whole or in part) through CIL, it merely provides an indication of the type of project.
Air Quality
All off-site citywide air quality mitigation and monitoring measures priorities where identified in Infrastructure Delivery Plan.
Education facilities
All off-site provision and improvements to new or existing schools and public sector funded education facilities.
Emergency Services
Cumulative impacts of development upon services where identified in Infrastructure Delivery Plan.
Energy and Utilities
Strategic renewable energy projects, measures and facilities provision where identified in Infrastructure Delivery Plan.
Flood Risk Management
Strategic Sustainable Urban Drainage Systems (SUDS) surface water flooding - priorities where identified in Infrastructure Delivery Plan
Health Facilities
Off-site citywide health care facilities provision.
Open Space Provision
All off-site provision and improvements to publicly accessible parks and other recreation open space facilities including amenity green areas and areas for food growing.
Recreation space built facilities
All off-site provision and improvements including built provision to play space, indoor/outdoor sports, and playing fields.
Provision and enhancement of Green Infrastructure network
Green infrastructure network connectivity including cross boundary infrastructure, rights of way, biodiversity measures and tree planting.
Public realm and cultural infrastructure
Strategic public realm upgrade including environmental improvements, components for delivery of arts, cultural provision and production space and technology.
Transport and Highways
City wide transport improvements including walking and cycling facilities and networks, public transport facilities and services, road safety, and parking and traffic management.
Off-site provision, improvement and maintenance to new and existing public highways infrastructure and rights of way including traffic signals, junction upgrades and lighting
The Council is refreshing its Infrastructure Delivery Plan (IDP) in 2021 in concert with City Plan Part Two. When completed the IDP will provide a more detailed list of infrastructure priorities which will require funding, this will be reflected in future updates to the IFS.
Section 106 Agreements – Collection and Expenditure
The council collects S.106 to make provision for infrastructure across the city including affordable housing, greenspace (including the provision and maintenance of parks, open spaces and playgrounds), schools, highways and sports and leisure facilities.
Section 106 Agreements and Income 2019/20
The following sets out:
b) The amount of S.106 paid to the council be developers in 2019/20 (from all planning obligations);
c) The amount of S.106 that is yet to be formally allocated for spending by the council; and
The data is currently reported using a monitoring spreadsheet in conjunction with the council’s finance systems. These records are being transferred to a new bespoke ICT system (Exacom) which will be used to report on all CIL and S.106 demand notices, obligations, income and expenditure with effect from 1st April 2020.
A breakdown of the data, based on the various infrastructure categories and referenced back to the planning permission, is provided in the appendices that accompany this report.
S.106 planning obligations signed by developers and the council (to be paid once development triggers are reached in the future) in 2019/20
In 2019/20 the council entered into 34 S.106 agreements as part of the approval of 2626 planning applications. In signing up to those S.106 agreements, the council is due to receive £7,407,153once triggers are reached on those development sites (and will be reported as income is received in future IFS reports.)
The 5 largest (by value) S.106 agreements signed during 2019/20 are summarised below:
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Planning Permission |
Development |
Total S106 (financial Obligations) |
Categories (all provision) |
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BH2018/02598 |
Longley Industrial Estate, New England Street, Brighton |
£1,582,367 |
· Affordable Housing · Artistic Component · Education · Public Realm including environmental improvements and tree planting · Local Employment/training · Recreation/open space · Sustainable Transport incl. Travel Plans |
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Land east Coldean Lane, North Varley Halls, Brighton |
£1,004,740
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· Affordable Housing · Education · Highways · Local Employment/training · Recreation/open space · Sustainable Transport including monitoring fee |
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BH2019/01272 |
1 Moulsecoomb Way, Brighton |
£692,169 |
· Artistic Component · Highways · Local Employment/training · Recreation/open space · Sustainable Transport |
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BH2018/01738 |
Land at Lyon Close Hove |
£676,703 |
· Affordable Housing · Artistic Component · Education · Highways · Local Employment/training · Recreation/open space · Sustainable Transport |
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BH2018/00868 |
Land at Kings House Grand Avenue, Hove |
£667,825
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· Affordable Housing · Artistic Component · Education · Highways · Local Employment/training · Recreation/open space · Sustainable Transport |
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Total value largest signed Agreements £3,955,979 |
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All of the S.106 obligations clearly define how the S.106 money will be spent and a list of all the obligations that make up the total is provided in the Appendices.
The amount of S.106 paid to the council be developers in 2019/20 (from all planning obligations)
It should be noted that the council monitors planning obligations which were entered into as long ago as pre 1997, as trigger dates can be met many years into the development process. This ensures that the council collects all obligations due from developers.
In 2019/20, a number of S.106 payment triggers were reached on a range of planning applications (with planning obligations going back to October 2016 .) The total amount received from those S.106 obligations was £8,868,182.
The 5 largest (by value) S.106 payments received during 2019/20 are summarised below:
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Planning Permission |
Development |
Total S106 Obligations |
Categories |
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BH2014/00093 |
Former Lansdowne Hotel, Lansdowne Place Hove |
£2,873785 |
· Affordable Housing · Education · Local Employment/training · Recreation |
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BH2017/00492 |
Preston Barracks (2nd payment) |
£1,040.358 |
· Affordable Housing · Local Employment/training · Sustainable Transport |
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BH2018/00340 |
Former Amex HQ Edward Street Brighton |
£783,633 |
· Education · Local Employment/training · Recreation · Sustainable Transport |
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BH2016/02535 |
Former Westerman complex School Road Hove
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£645,660 |
· Local Employment/training · Recreation · Sustainable Transport · Wheelchair accessibility (for affordable housing) |
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BH2018/00868 |
Land Kings House, Grand Avenue Hove (1st (50%) payment) |
£363,921 |
· Education · Local Employment/training · Recreation
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Total largest payments received £4,668,039
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A full breakdown of the sums received is included in Appendix (II).
The amount of S.106 that is yet to be formally allocated for spending by the council
As mentioned above, the council monitors S.106 obligations going back to 1997. In all cases, S.106 obligations clearly set out what they will deliver and pay for. However, sometimes it may take time for the full amount of S.106 money to be triggered and received in order to deliver a specific infrastructure project.
Where S.106 has not been formally “allocated”, this does not mean that it will not be spent on a specifically defined project. It may mean that the relevant directorate is developing a programme or scheme to spend the money on the measures in areas defined in the s106 Agreement, and this may also include current or future funding from other budget headings to support the total investment costs. Therefore authority to sign off the spend has not at this stage been reached.
The total amount of money, under any planning obligation which was received on or before 31st March 2019 either allocated or yet to be formally allocated, totals £18,885,717.
Non-Monetary Obligations
The CIL Regulations identify that in some cases, S.106 can include “non-monetary” contributions. This means that developers enter into an agreement which obliges them to provide infrastructure such as affordable housing units on site; or open spaces and children’s play area for example, rather than paying money to the council to deliver.
In 2019/20, the council entered into 10 planning agreements which will deliver 184affordable housing units of 76 affordable rent and 108 shared ownership homes on site
Furthermore, the council entered into a total of 34 S106 Agreements with planning obligations which will make provision for the following:
S.106 Expenditure
The IFS reports on the £2,113,889 S.106 expenditure on infrastructure items by the council in the financial year 2019/20. This includes money from historic S.106 obligations entered into prior to 2019/20, due to the lead time to deliver projects and to ensure that sufficient sums of money are available to send on specific projects.
The 5 largest (by value) S.106 projects funded during 2019/20 are summarised below:
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Planning Permission |
Development |
Project Funded |
Total Project Expenditure 2019/20 |
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BH2015/01471 |
Former Astoria, Gloucester Place Brighton |
Affordable Housing Selsfield Drive land provision |
£521,000 |
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BH2015/01471 |
Former Astoria, Gloucester Place Brighton |
Affordable Housing Frederick Street land provision |
£300,000 |
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BH2017/01891 |
West Blatchington Primary School, Hangleton Way |
Recreation – Portslade Sports Centre 3G pitch |
£150,000
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BH2010/01054 |
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Education – Varndean School upgrade works |
£135,796 |
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BH2012/03364 |
Former convent, 1 Manor Road Brighton |
Education – Dorothy Stringer upgrade works |
£107,743 |
A full breakdown of the sums expended is included in Appendix (III).
The council, did not spend any S.106 receipts to repay money borrowed (including interest.
It also did not refund any sums to developers under the terms of the S.106 agreements in 2019/20.
POSSIBLE INSERT PEN PROFILE OF THE 5 PROJECTS ABOVE SUBJECT TO INFORMATION & PICTURES BEING AVAILABLE FROM REQUISITE SERVICES
S.106 Monitoring Fees
The Council historically has not charged a monitoring fee on planning applications with S.106 obligations. In September 2019, the amendments to the CIL Regulations allowed for planning authorities to set monitoring fees for S.106, in addition to the capped 5% administration fee that is permitted from the sums raised through the CIL levy.
The council has included it’s mechanism for charging monitoring fees in the updated Developer Contributions Technical Guidance that was approved in June 2020 and is available on the council’s website: INSERT LINK
The monitoring fee receipts will accumulate over time because developments that include a S.106 monitoring fee may not start for several years.
Included in this 2019/20 IFS Report are two monitoring sums totalling £8,524 being the sum of £4,800 secured from application BH2018/03541 land east Coldean Lane North Varley Halls Brighton for Travel Plan Monitoring and £3,724 from 2019/00293 (Sea Lanes) land at former Peter Pan's Playground Madeira Drive Brighton for Ecological Mitigation Monitoring.
Long Term Maintenance Sums on Deposit
In some cases, when a development site includes public open space and play space (or improvements), it asks the council to take responsibility for the ongoing maintenance for the spaces and equipment. In these instances, developers pay maintenance sums upon transfer of the land which are held on a long-term basis.
The total amount allocated as long-term maintenance (retained as at 31st March 2020) is £102.520.60 for the sites below:
Conclusions
The council must deliver a significant quantum of new housing and development over the period covered by the Brighton and Hove City Plan Part One (to 2030.) This will require an increasing amount of CIL and S.106 developer contributions from developers to fund the consequential infrastructure improvements required to support the demands of these developments.
The IFS shows that, in 2019/20, a significant level of monetary and non-monetary obligations have been entered into, with 184 affordable housing units being secured, alongside the contributions set out in the summary table below:
Also, as set out in the appendices important infrastructure projects are being delivered annually using S.106 receipts.
Subsequent IFS reports will provide comprehensive reports on CIL income and expenditure, along with the ongoing position with new and existing S.106 agreements.
Finally, this inaugural IFS provides a snapshot of S.106 income and expenditure from 2019/20 and shows how developments in the city are contributing to improvements in key infrastructure projects across the city.
Glossary
INCLUDE TERMS FOLLOWING REVIEW BY LAYPERSON TO CHECK IF NEEDED
Appendices
Appendix (I) 2019/20 Contributions Secured
Appendix (II) 2019/20) Contributions Received
Appendix (III) 2019/20) Contributions Spent
Appendix (IV) 2019/20 Contributions Held