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SPF says bigger fees must bring real service improvements

The Scottish Property Federation (SPF) has welcomed a report from Audit Scotland calling for further progress to modernise the planning system.

However, it also insisted that increases to planning fees, a key recommendation of the report, must be matched by improvements to the planning system if Scotland is to compete successfully for business and investment.

The report found that while public bodies involved in planning are now working better together, the time councils take to decide planning applications has not reduced.

Audit Scotland - an independent body set up to audit all of Scotland’s public bodies – was asked by the Accounts Commission and the Auditor General for Scotland to assess whether recent reforms and modernisation of the planning system is making it more economic, efficient and effective.

The report acknowledges some progress has been made in improving the planning service but makes a number of recommendations for planning authorities and the Scotland Government to improve the planning service further. The report also proposes a better performance measurement system to monitor planning authority handling of major planning applications.

Among the proposals is a recommendation to link planning fee increases to improvements in service and a further recommendation to ensure planning authorities agree key timescales with major planning applications.

Commenting on the report SPF’s director David Melhuish said:

“We welcome the proposals for agreed timescales between major planning applications and planning authorities. This will give developers greater certainty when making complex multi-million pound investments. However, any increase in planning fees must deliver a better planning service if we are to compete successfully for business and investment.

“One part of the report we feel did not receive sufficient consideration is the cost for applicants of up front feasibility studies and impact assessments.  These can cost hundreds of thousands of pounds before an application is even lodged.  It is important we identify exactly what kind of service is provided by the planning system before we pursue an increase in fees.”

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For further information or to arrange an interview contact Patrick Clift, media and public affairs manager, on 020 7802 0128 or at pclift@bpf.org.uk, or Paul Sweeney, media officer, on 020 7802 0113 or at psweeney@bpf.org.uk

Audit Scotland press release

Better understanding of performance and costs of planning system needed

Posted: 15 September 2011

An Audit Scotland report published today, Modernising the planning system, assesses whether recent reform of the planning system is making it more economic, efficient and effective.

The report finds that, while public bodies involved in planning are now working better together, the time councils take to decide planning applications has not reduced and there is a widening gap between the costs of processing applications and the income councils receive from fees. The report says that more detailed information on performance and costs is needed to identify efficiencies.

The number of planning applications has fallen by 29 per cent over the past six years, with income from planning application fees also dropping. However, expenditure on processing planning applications has risen by 17 per cent in real terms between 2004/05 and 2009/10. Over this period, the gap between income and expenditure on processing planning applications increased in real terms from £6.7 million to £20.8 million. This gap has to be met from councils’ central budgets, which are already under pressure.

John Baillie, Chair of the Accounts Commission, said:

“Our planning system plays a key role in sustaining and growing our economy and shaping our communities. The time taken to decide planning applications is not reducing and the gap between income and expenditure is widening and becoming increasingly unsustainable. Councils lack detailed information on the costs of handling planning applications. Understanding these costs and why they have increased is a necessary first step in identifying where efficiencies can be made. Councils need to make progress on this as a matter of urgency.”

The report says that there have been significant changes at national, regional and local levels and a survey shows that users are generally satisfied with the planning application process. Progress has been slower than expected in developing some strategic and local development plans and in introducing householder permitted development rights, which will set out when planning permission for small developments is no longer needed.

Robert Black, Auditor General for Scotland, said:

”The Scottish Government has led other public bodies in making major changes and there is now better working between the public bodies involved. The Scottish Government should ensure its reform programme is completed and that a new framework is put in place for measuring performance and linking planning activities with outcomes.”