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Audit Commission-study of pplanning obligations

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The Audit Commission has produced (August 2006) a range of guidance for local authorities under the general title of Securing Community Benefits through the Planning Process.  In addition to the general report on securing community benefits, three other reports have been produced:

• Route Map to Improved Planning Obligations; which describes steps local authorities need to adopt to improve their approach to Section 106, and to address some common weaknesses;
• Value for Money Self Assessment Guide; giving advice on how to apply VFM concepts to the Section 106 process; and
• Corporate Awareness Checklist; designed to raise awareness of the role and contribution of the Section 106 process among chief executives, leaders and other senior councillors and officers.

The results of the survey of local authorities carried out for the report showed that:

• The councils that obtain the highest value of facilities through planning obligations tend to be in higher-value areas;
• The value of planning obligations typically does not exceed 10 per cent of the value of the development value (house price) and is often much less;
• There can be a wide variation in the value of facilities secured through planning obligations in areas with similar property prices.

The most significant reason for the differences above were;

• Property values;
• Absence or incomplete detailed policy and supporting processes; and
• Existing spare capacity in local services.  

The study notes that if PGS were to be introduced, much of the work done by councils to set up good Section 106 polices and systems will still be relevant and valuable under the new regime.  It is also likely that background work for wider policy development will still be useful in any future system for the redistribution of PGS revenues.

Perhaps the most useful of the reports gives advice on Improving Performance on Section 106 Agreements.  It lists six building blocks to improved performance as:

• Design a clear policy (set out in supplementary planning documents);
• Test the likely impact of the policy package on development viability;
• Design a systematic process, with planning obligations considered early in the process;
• Be clear about when and how communities should be involved;
• Improve transparency by publicising the policy and outcomes of the process; and
• Monitor the outcomes and manage the risks.

The report makes specific reference to the Sport England Kitbag, giving the web address under the section entitled ‘Other Resources’ [page 28 of the report].

The Audit Commission work has already been influential, and has been referred to by the Government in its consultation papers and elsewhere.  It should give an important impetus to improvement at local level, and should lead to some ‘levelling up’ of planning obligations activity across authorities.  The guidance in these reports is similar to that promoted by Sport England in its 1993 and 2001 good practice guides, as well as in the current Kitbag.

To view the whole report, click here.

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