Planning fees: consultation

Consultation on Raising Planning Fees

Purpose

1. The Scottish Government recognises the importance of planning in supporting economic growth, in the delivery of quality homes and in community empowerment. We have committed to consulting on enhanced fees, following the independent review of planning recommendation that fees for major applications should be increased substantially so that the service moves towards full cost recovery. This paper seeks views on a new fee maximum of £125,000 for major applications for most categories of development (£62,500 for applications for planning permission in principle). It includes details of a reduced charge per unit or per 0.1 hectare for developments over a certain size to ensure that applicants in Scotland do not pay more than they would in other administrations for any size of proposed development. We will be considering wider changes to the fee structure, including scope for further discretionary charging taking account of changes to the planning system flowing from the review.

Aim

2. Planning fees are currently capped at £18,270, £20,055 and £30,240 depending on the category of development. The aim of this amendment to the current fees regulations is to raise the current planning fees maxima for most categories of development) to a revised cap of £125,000 to better reflect the level of resources they demand. The proposed changes retain the current structure and do not contain any across the board increase. The changes proposed are set out in paragraphs 5 to 8 below. We recognise the specific challenges faced by the Agriculture and Aquaculture sectors and note the extremely limited instances of such proposals being of a scale that would reach the existing fee maxima. This consultation does not propose an increase to the maxima for these categories of development.

Linking fees to performance

3. The overall resourcing of the planning service is the responsibility of local authorities. The planning service is financed through the local authority’s budget and fees from planning applications. Scottish Ministers expect a planning system that is reliable, proportionate and provides a service that is focused on delivery which is able to develop, share and adopt good practice for continuous improvement.

4. Scottish Ministers agree with the views expressed in the review that any increase in fees must be linked to sustained improvements in performance. The fee increase proposed in this paper will provide increased resources to planning authorities to help support performance improvement. Following consultation on the review of planning Scottish Ministers will reflect on the need for further changes to resourcing the planning system and will consider, together with the High Level Group on Planning, how the link between fees and performance can be maintained and strengthened.

Table of fees

5. There is no change proposed to the current planning fee per unit of £401 for developments up to 50 units. Housing developments containing 50 residential units would pay £20,050 and any additional unit will be charged at £200 per unit until the fee maximum of £125,000 for 575 houses is reached.

6. There is no change proposed per hectare up to the current fees maxima (£18,270, £20,055 and £30,240 depending on the category of development) and additional hectares are proposed to be charged at a lesser rate until the fee maximum of £125,000 (4.3 hectares) is reached. The introduction of a lower rate which will apply over a specified amount should help moderate the impact on major projects of the higher fee maximum.

7. For applications for planning permission in principle ( PPP) we propose similar changes per house or by per 0.1 hectare. The maximum for PPP will be raised to £62,500.

8. This would apply to the following categories of development:

1. Residential development (other than alteration of an existing dwelling).
(a) There will be no change in PPP fee of £401 per 0.1 hectares up to £10,028 however, thereafter £100 per 0.1 hectare will be charged until the fee maximum of £62,500 is reached.
(b) There will be no change in the current fee per unit of £401 for developments up to 50 units. Housing developments containing 50 residential units would pay £20,050 and any additional unit will be charged at £200 per unit until the fee maximum of £125,000 is reached.

2. The erection of buildings (other than residential, agricultural buildings and glasshouses, and alteration of existing dwellings.).
(a) There will be no change in PPP fee of £401 per 0.1 hectares up to £10,028 however, thereafter £100 per 0.1 hectare will be charged until the fee maximum of £62,500 is reached.
(b) to add section (iv) where the area of gross floor space exceeds 3750 square metres £200 for each 75 square metres (or part thereof) subject to a maximum of £125,000

3. Plant or machinery.

There will be no change in the current fee of £401 per 0.1 hectares up to a maximum of £20,050 however, thereafter £200 per 0.1 hectare will be charged until the fee maximum of £125,000 is reached.

4. The carrying out of any operations connected with the exploratory drilling for oil or natural gas.
There will be no change in the fee of £401 per 0.1 hectares up to £30,240 however, thereafter £200 per 0.1 hectare will be charged until the fee maximum of £125,000 is reached

5. The carrying out of other operations as set out in Category 10 of the Schedule in the Town and Country Planning (Fees for Applications and Deemed Applications) Amendment Regulations 2014.
There will be no change in the case of operations for the winning and working of minerals of the fee of £202 per 0.1 hectares up to £30,240, however thereafter £100 per 0.1 hectare will be charged until the fee maximum of £125,000 is reached.

6. The change of use of a building to use as one or more dwellinghouses.
There will be no change in the current fee per unit of £401 for developments up to 50 units. Housing developments containing 50 residential units would pay £20,050 and any additional unit will be charged at £200 per unit until the fee maximum of £125,000 is reached.

7. The use of land for waste disposal and mineral stocking. There will be no change in the fee of £202 per 0.1 hectares up to £30,240, however thereafter £100 per 0.1 hectare will be charged until the fee maximum of £125,000 is reached.

9. Examples of how the new fees would work in practice:

We propose a 2 stage approach to reviewing planning fees, with an initial increase to the fee maximum for these categories of development, followed by a wider review of the fee structure once the current planning reform programme has identified changes to the planning system. As a first stage, do you agree with the proposed maximum fee level?