Infrastructure funding statement

Annual infrastructure funding statement 2021/2022.

1. Introduction
2. Planning obligations
3. Annual infrastructure funding statement requirements
4. Infrastructure funding statement
5. Examples of infrastructure delivery through S106 in 2021/2022
6. Future spending priorities

1. Introduction

1.1 On 1 September 2019, the Community Infrastructure Levy Regulations (CIL) 2010 (as amended) came into force and require that contribution receiving authorities must produce an annual Infrastructure Funding Statement (IFS).

1.2 The IFS provides a summary of all financial and non-financial developer contributions' activity relating to Section 106 Legal Agreements (S106) for the previous financial year (1 April to 31 March) and must be published by 31 December every year. The CIL regulations specify the financial information which must be included within the IFS.

2. Planning obligations

What are Section 106 agreements?

2.1 Planning obligations represent an important funding stream for the provision of infrastructure and services needed to deliver sustainable growth. They are also commonly referred to as 'section 106' and/or 'developer contributions'. A planning obligation is a legal obligation under Section 106 of the Town and Country Planning Act 1990 and is entered into to mitigate the impacts of a development proposal. S106 agreements are most commonly agreed between a local authority and a developer and are attached to a planning permission.

2.2 S106 planning obligations assist in mitigating the impact of unacceptable development to make it acceptable in planning terms. Planning obligations may only constitute a reason for granting planning permission if they meet the 3 statutory tests as set out in the Community Infrastructure Levy (CIL) Regulations 2010 (as amended) and in paragraph 57 of the NPPF. They are:

• necessary to make the development acceptable in planning terms
• directly related to the development
• fairly and reasonably related in scale and kind

2.3 We are responsible for the delivery and operation of much of the large scale infrastructure required to support development such as highways, schools, libraries and waste. Our requirements for S106 contributions are set out in our Developer Contributions Protocol. Our planning services work closely with local planning authorities to identify the impact of proposed development and ensure the infrastructure requirements needed to support development are identified through the local plan process.

What is the Community Infrastructure Levy (CIL)?

2.4 Another type of planning obligation is the Community Infrastructure Levy (CIL) which is a planning charge introduced by the Planning Act 2008 as a tool for local authorities in England and Wales to help deliver infrastructure to support the development of their area. Local authorities (as a charging authority) can choose to introduce a CIL which is calculated on a £ per square metre (sq m) basis on new development, with some exemptions or reliefs. The charging authority should specify in their charging schedule what types of development are liable for the levy and the relevant rates for these development types. Under the legislation, county councils cannot be a CIL charging authority, however county councils can collect the levy charged by district and borough councils on developments for which the county council gives consent.

2.5 In Derbyshire currently the only authority which charges a CIL is Chesterfield Borough Council. The borough council has developed a CIL Expenditure Strategy which sets out how the council will evaluate the specific infrastructure projects to prioritise which CIL will fund, in order to support growth and development across the borough.

3. Annual infrastructure funding statement requirements

3.1 On 1 September 2019 amendments to the Community Infrastructure Levy Regulations 2010 (as amended) came into force which introduced a new duty on contribution receiving authorities to prepare an Annual Infrastructure Funding Statement.

3.2 The CIL regulations require under Regulation 121A, that no later than 31 December in each calendar year a contribution receiving authority must publish an annual infrastructure funding statement which comprises the following 3 requirements:

• a) 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 (other than CIL to which regulation 59E or 59F applies) ('the infrastructure list')
• b) a report about CIL, in relation to the previous financial year ('the reported year'), which includes the matters specified in paragraph 1 of schedule 2 ('CIL report')
• c) a report about planning obligations, in relation to the reported year, which includes the matters specified in paragraph 3 of schedule 2 and may include the matters specified in paragraph 4 of that schedule ('section 106 report')

3.3 Section 4 provides the Infrastructure Funding Statement detail as required by the CIL regulations, followed by case studies in section 5, to help demonstrate how s106 projects are implemented and infrastructure provided to mitigate the impact of development.

4. Infrastructure funding statement

Based on Regulation 121A here is our Infrastructure Funding Statement covering the period 1 April 2021 to 31 March 2022.

Regulation 121A part a) - infrastructure projects or types of infrastructure which the charging authority intends will be, or may be, wholly or partly funded by CIL

4.2 Derbyshire County Council is not a CIL charging authority.

Regulation 121A part b) - the CIL report

4.3 Derbyshire County Council is not a CIL charging authority. County councils can only collect the levy charged in accordance with the district or borough council's Charging Schedule, on developments for which the county council gives consent. Currently the only CIL charging authority in Derbyshire is Chesterfield Borough Council. No consents which were chargeable developments were issued by Derbyshire County Council in Chesterfield Borough in 2021/22.

Regulation 121A Part c) - the Section 106 report

4.4 The detail set out in each section of this Section 106 report is based on the requirements set out in Schedule 2 of the CIL Regulations 2010 (as amended) and records only those obligations applicable to the county council.

4.5 Please note with regard to the classifications, travel and transport has been categorised as the revenue funding associated with the provision of new or extended travel services and travel plan monitoring. The remaining categories encompass capital funding for infrastructure.

4.6 In the reporting year, namely 2021/22, 13 S106 agreements were signed containing 34 obligations amounting to a total of £13,108,755.97. Further information regarding these agreements is contained in Appendix A.

4.7 Where a S106 is signed on an outline permission, the maximum potential contribution has been included in the figures. This may reduce at reserved matters stage when the number of dwellings is finalised. Developer contributions are only payable should the development be delivered.

4.8 It must also be noted that the figures provided are a snapshot in time and planning obligations can be renegotiated at any point where the local planning authority and developer wish to do so.

4.9 A total of £11,270,043.88 S106 funding was received during 2021/22. Further information regarding contributions received is included in Appendix B.

d) Summary details of any non-monetary contributions to be provided under planning obligations which were entered into during 2020/21, including:

i) in relation to affordable housing, the total number of units which will be provided - nil

ii) in relation to educational facilities, the number of school places for pupils which will be provided, and the category of school at which they will be provided - nil

4.10 Of the S106 agreements signed in 2021/22, obligations have also been secured for developers to directly deliver works towards:

• production and implementation of travel plans
• bus service enhancement

4.11 Further information is included in section g) regarding those funds allocated in 2021/22 which remain unspent.

4.12 It should be noted that the majority of S106 agreements include specific criteria that governs how the funding must be spent. In a number of cases once a contribution has been received it will not be committed to a project until sufficient funding has been accrued to deliver that project. This may involve pooling contributions from more than one development. Unallocated funds are under review by the relevant services.

4.13 Further information is including in section h) regarding funds spent in 2021/22 and the projects on which the funds were spent. Please note the projects which have been delivered may have been delivered in advance of the receipt of S106 funds in order to provide the infrastructure in a timely manner.

h) In relation to money (received under planning obligations) which was spent by the authority during the reported year (including transferring to another person to spend) summary details of:

iii) the amount of money (received under planning obligations) spent in respect of monitoring (including reporting under regulation 121A) in relation to the delivery of planning obligations:

4.14 The value of funds retained at the end of 2021/22 are shown. It must be noted however that a proportion of these funds may also be formally allocated or identified for projects which are in development.

4.15 No funds have been retained as commuted sums for maintenance.

5. Examples of infrastructure delivery through S106 in 2021/2022

Woodville to Swadlincote Regeneration Route

The Woodville Swadlincote Regeneration Route was designed to unlock the development potential of the Woodville regeneration area located adjacent to the route in South Derbyshire District. The regeneration area is considered as being fundamental to the future prosperity of Swadlincote and is expected to provide much needed commercial space and 300 new homes, creating 3,100 jobs, plus construction jobs.

A grant from D2N2 Local Enterprise Partnership’s Local Growth Fund was required to make the project viable given that the regeneration route crosses an area of former open cast and deep mine workings which had been poorly backfilled with mixed fill.

The regeneration route also forms an important component of Derbyshire's transport infrastructure by providing an alternative route for traffic accessing the town of Swadlincote thus relieving congestion on the A511/A514, and also for east-west journeys between the M1/A42/M42 and A38/A50 trunk roads.

The route also has the potential to provide additional economic benefits to and boost investor confidence within Woodville and Swadlincote by enabling reduced and consistent journey times.

Following planning permission and compulsory purchase of land, construction work began in October 2019 and was completed and opened to traffic in December 2021. The road is currently taking between 5,000 and 7,000 vehicle movements a day.

Total project cost £13.4 million.

Queen Elizabeth Grammar School, Ashbourne - 6-classroom extension

In response to significant housing development within the normal area of the school, Queen Elizabeth Grammar School (QEGS) has converted an existing single storey building on the Boothby site which originally accommodated changing rooms and 3 classrooms. The new building is 2-storey and provides new changing rooms, and a total of 9 classrooms and ancillary spaces and increases the net capacity of the school by 180 places.

The project was managed by the QEGS Multi Academy Trust.

Total project cost £2.97 million.

Derbyshire County Council has forward funded an additional £286,461 in advance of future S106 income.

John Port Spencer Academy - art block and car park

This project will deliver additional art, design and teaching accommodation to support the expansion of pupil places from PAN 360 to PAN 420 (11 to 16-year-olds) and an increase of sixth form pupil places. The project proposes to internally remodel staff areas on the ground floor of the Edale building and to partly remodel the Hathersage building to create additional classrooms and associated stores. It also involves the internal remodelling of the new Derwent building to create a graphics room and a larger ICT classroom.

The project also proposes to extend and resurface the existing overspill car park adjacent to the leisure centre to provide an additional 54 car parking spaces. Further additional parking spaces will also be provided by reorganising and making more efficient use of existing car parking areas.

Total project cost £1,280,664.49.

6. Future spending priorities

6.1 The types of infrastructure that the authority intends to fund, either wholly or partly, by the use of planning obligations is set out in our Developer Contributions Protocol.

6.2 This is supported by the development of our Strategic Growth and Infrastructure Framework (SGIF) which includes strategic projects which we, alongside partners, are actively working to progress. We actively engage with partners to ensure the economic potential and infrastructure priorities for Derbyshire are identified, in order to help address climate change, the good growth agenda, to unlock development and create sustainable communities.

Appendix A

Appendix B