The shortest possible presentation on setting planning fees for busy people (draft) October 2011www.pas.gov.uk

Contents 1.What ? 2.Why ? 3.When ? 4.Who ? 5.How ? 6.Risks ? 7.Next steps ? 8.Why not wait? 9.References [There are a few speakers notes, embedded in the slides. Last updated 20 October.]

1. What ? As part of “localism”, the government have signalled their intent to devolve planning fee setting to local government. Each Council must set its own fees to recover their costs on application handling. No profit - No cross-subsidy. No one wants 300+ different approaches. A small working party has helped PAS design a model that all authorities can use.

2. Why ? Cost recovery means developers are no longer subsidised by tax payers. A local focus on “cost” leads to being locally accountable for “value”. This should reduce the overall burden and improve service. But this does not make planning self-sufficient. Recoverable costs do not include strategy, appeals, enforcement, some types of development.

3. When ? We’re not sure. The Government’s timetable has slipped – April 2012 commencement could still be possible (but only just) Existing fee regs “sunset” means the Government will have to act soon. But you can prepare now. Benchmarking now provides the chance to implement as soon as allowed. Current session starts 7 th Nov – sign up by 31 st October.

4. Who ? PAS are talking to and working with: The development industry (reps) CIPFA (benchmarking) CIPFA (SERCOP accountancy) The planning portal (fee calculation) Local Government Group ICT Suppliers (data and systems) Plus our local authority steering group on fees

5. How (1/6) ? Planning is a monopoly service. You will need a robust, transparent approach to avoid JR. The benchmark gives a robust common framework that you can populate with your figures. It is not complicated, and has been designed to be done without much support. This costs about £420 for counties and unitaries, £360 everyone else (payable to CIPFA – PAS is grant funded)

5. How (2/6) ? Costs are allocated to all planning activities through time sheeting and analysis of other direct and indirect costs. Rechargeable costs are translated to an hourly rate to drive prices. ( similar approach to Building Control) For bigger / rarer / more complex applications, use negotiation on resources and costs via a “Planning Performance Agreement”.

5. How (3/6) ? Then the toolkit splits costs between what can be charged to applicants and that which the council funds. You find out more about the cost of the whole planning service enabling more effective improvement planning.

5. How (4/6) ? You decide: how much resource gets put into dealing with each application type in your area. what services the developer buys for his fee, any concessions to be met out of Council funds (within state subsidy rules) You forecast your workload for next year

How? (5/6) Our toolkit will translate your resource details into fees within a new format pricing schedule. It provides a budgeting mechanism that explicitly matches predicted future costs against anticipated future income There are other fee setting other models in the market

5. How (6/6) ? Alongside the costs, we also survey service users. “cheapest” is not always “best”. We cover the whole service – not just chargeable but also activities funded with tax-payers money. This VFM matters just as much as applicants. You then consult on your cost schedule and the judgements that shaped it

6. Risks & responses RiskResponse Challenge (Judicial review)Robust process. Evidence. Under-recovery of £ costsActive management of resources. Provisions. Reputation (you might look expensive) Be clear on value. Manage down costs Human error (new opportunities for mistakes) Recycle guidance. Check with peers.

7. Next steps ? Councillors and senior officers may need to: Be prepared to unblock the process of information gathering Make clear your values – where are you on “Time / Cost / Quality” ? Set out your democratic process for adopting fees Engage with some of the “kickback” from effected users Support longer-term work on improvement

8. Why not wait? Even though the Government’s timetable is uncertain, its worth progressing this now. It will provide an invaluable insight into where resources are spent now You have a chance to compare your service to other similar local authorities If there is more delay – there is an opportunity to manage costs before local fees become public information

8. References Statutory Instrument (tbc) Circular (tbc) LG Group response to consultationLG Group response to consultation (login) PAS page and sign-up PAS forum for Q&A CIPFA guide (tbc) (£) Sign up for our monthly newsletter here

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