Agenda item

To receive a report from the Director of Place and Economy on the S106 Governance Framework.

Cabinet had before it a report * from the Director of Place and Economy on the S106 Governance Framework.

The Cabinet Member for Housing, Assets and Property outlined the contents of the report with particular reference to the following:

• This was an update to the existing S106 governance arrangements. 
• It had been revised to ensure the most appropriate and effective approach to S106 management and monitoring, to ensure that they were consistent with the latest government regulations and to provide Members with more visibility and input into the spend process.
• Any financial planning obligations must be spent in accordance with the terms of the S106 agreement. Those agreements were used to offset the implications of an individual development as identified through the planning process and therefore it was important to have a robust and appropriate governance to ensure the effective and appropriate use of S106 monies.
• The proposed governance framework (Appendix 1), which set out the arrangements on the nature of the S106 spend, and provided clarity in terms of when decisions were delegated to planning officers, and the conditions where more significant decisions needed to go the Governance Board for consideration.
• Also included, were the Terms of Reference, which set out the purpose and expectations of the Board and the decision making process, including composition of the Governance Board and regularity of meetings.

The framework document and appended terms of reference were considered by the Planning, Environment and Sustainability Policy Development Group at a meeting on 26 November 2024. The Group agreed that the framework document and appended terms of reference be recommended to Cabinet for approval, with one minor amendment, which was to add the word ‘Infrastructure’ at the end of bullet point 9, at 4.0 Planning obligations (Section 106 agreements) so that the bullet point read

‘Highways and Transport Infrastructure’, to ensure wider transport schemes such as rail related projects were captured.

Discussion took place regarding:

• The timelines on spending and the balance of priorities.
• Key challenges, such as balancing local and district-wide strategic priorities and enhancing Member oversight.
• Clarity was needed in certain areas. Delegated decisions allowed for more streamlined approvals, what was the route of appeal should a validation or delegated decision be contested?
• Were the Governance Board decisions final?
• Disappointed by the lack of progress on the Community Infrastructure Levy (CIL).
• Opportunities to review the structure to further enhance inclusivity and transparency, particularly with respect to representation from Ward Members and Town and Parish Councils.
• Further clarity on the new government’s direction regarding the emerging Infrastructure Levy (IL), and would the Council prioritise preparing for this transition and consider aligning infrastructure planning processes accordingly?

RESOLVED that the revised S106 Governance arrangements (Appendix 1; Mid Devon District Council S106 Governance Framework) be APPROVED with the following exceptions.

a)    This would require a change to the Terms of Reference section 4 under the Fixed Panel heading before bullet point four the following words to be added “three Cabinet Members from the following:”

b)    A new seventh bullet point to be added to this section with the words “Cabinet Member for Parish and Community Engagement”.

c)    The Quorum arrangements would remain unaltered at two Members and

d)    That the S106 Governance arrangements returned to the Planning, Environment and Sustainability Policy Development Group within the next 12 Months.

(Proposed by Cllr S Clist and seconded by Cllr N Bradshaw)

Reason for Decision:

S106 agreements may include obligations on the developer to make a financial contribution in order to make the development acceptable in planning terms. Contributions become due on a trigger point set out in the legal agreement.

Note: * Report previously circulated.