Investing in planning - resourcing Scotland's planning system consultation: impact assessments

Partial Business and Regulatory Impact Assessment

Purpose and Intended Effect

The Scottish Government is committed to working with all stakeholders to ensure that the planning system is better equipped to deal with current and future challenges.

This consultation sets out a range of options which have the potential to improve the capacity of the Scottish planning system, in particular in planning authorities, in the coming years. It responds to current and future challenges, with a view to identifying a set of short and medium term actions that could improve the capacity of the planning system by helping build resilience and by strengthening cross sector collaboration.

The changes that are being proposed are to ensure that the planning system operates effectively and in a way that is compatible with the Scottish Government's wider policy objectives for the planning system.

Consultation

• Within Government The responsibility for these issues lies with Planning, Architecture and Regeneration Division (PARD) and the proposals have been developed by a core team with assistance from colleagues across the Division. The consultation paper has also been drafted in collaboration with the relevant interests within Government including Building Standards, Energy, Marine and Local Government.
• Public Consultation Since planning fees were increased in April 2022 we have been in continued discussion with COSLA and Heads of Planning Scotland to identify how planning fees can move closer towards covering the full cost of their determination. In November 2023 we invited 50 cross sector stakeholders to a workshop to identify practical solutions to support efficient and effective operation of the planning system. The workshop outputs include a series of actions and proposals which will help to address short term issues and build in longer term resilience. A summary of the workshop discussions can be viewed at: Resourcing the Planning System Workshop - November 2023 | Transforming Planning

The outputs form the workshop were presented to the High Level Group on Planning Performance in December and it was agreed that they would oversee progress and delivery. The consultation paper also seeks views on implementation of the identified actions and provides updates on progress where appropriate.

Resourcing and skills was also a common theme throughout the preparation of National Planning Framework 4 (NPF4).

During the public consultation period and beyond we will continue to engage with relevant parties including COSLA, Heads of Planning Scotland, agencies and business organisations, primarily through the High Level Group on Planning Performance and the Applicant Stakeholder Group.

Options

The consultation includes a range of separate proposals which are intended to improve the resources available to and capacity of local authorities. It is not intended that all proposals will be taken forward and there will be a need to prioritise interventions subject to the outcome of the consultation. Individual impacts will be considered at that time.

Option 1 - Do nothing

Option 2 – subject to the outcome of consultation we will consider what proposals should be taken forward, the route to implementation and the delivery timescales. The new proposals highlighted in the consultation are:

• A central planning hub to support authorities
• Short term working group to look at proportionality of assessments
• Taking stock of the use of processing agreements
• Improved cross council working to better align consents
• Developing templates for Section 75 agreements
• Devolving power to authorities to locally set planning fees
• Introducing an annual inflationary increase in planning fees
• Increasing discretionary charging including processing agreements, sites not allocated in the development plan and masterplan consent areas
• Introducing fees for appeals
• Service charge for submitting applications online
• Considering the potential to alter the threshold for applications under the Electricity Act
• Introducing a fee category for hydrogen projects
• Increased fees for prior notification and approval categories.
• Consistent approach to fees for shellfish farming.

Sectors and Groups Affected

This is an Partial BRIA and is not intended to be a definitive statement or a full assessment of impacts.

Local Authorities

The main objective of the consultation is to improve the resourcing, capacity and skills of planning authorities. Part one of the consultation may require authorities to invest time in identifying areas where they can provide greater certainty to applicants through better alignment of consenting processes, streamlined and standardised practices and sharing and learning new skills and knowledge. Part two of the consultation may require authorities to invest time in either developing new approaches or to introduce new services or charges. It is expected that any new charges are intended to improve the financial position of planning authorities in the longer term.

Business

Part one of the consultation outlines the range of work which is being carried out in order to improve the capacity and skills of planning authorities. This should result in benefits for business and in particular applicants, through improved certainty and customer service provided by planning authorities. Proposals and options in Part 2 of the consultation will likely lead to increased costs for applicants. It is not proposed that all options will be implemented at the same time and, subject to the outcome of the consultation, work will be required to prioritise the proposals and develop an implementation plan. We would expect that any increases to fees or the introduction of additional charges by authorities are expected to improve planning services and meet customers’ expectations that if they are to pay more, then improvements in performance will be expected.

Benefits

Option 1 – Costs will remain the same, providing certainty for applicants.

Option 2 – The proposals within the consultation are wide ranging, covering areas from skills and streamlining processes to the introduction of new fees and charges. It is not expected that these will all be implemented at a single point in time. The implementation of proposals should lead to incremental improvements in planning service provision.

Costs

Option 1 – As outlined above costs will be expected to remain the same. However, potential benefits for applicants of an improved planning service would not be realised.

Option 2 – The consultation includes a combination of high level and detailed proposals. Many of the high level proposals are seeking to establish if there is support for the principle and therefore, further work will be required to work up the detailed costs. However, for some proposals we have sought to provide some indication of the likely costs involved in order that respondents can make an informed response. It should also be noted that the proposals should not be viewed as a package as they may be required to be taken forward at separate times which will be informed by the outcome of the consultation. Set out below is an indication of where some figures have been provided and the potential impact of any changes on costs.

• A central planning hub to support authorities – An indicative cost for the overall running of the Hub has been provided based on the Building Standards Hub. If there is support for the principle, further work is required to identify demand, running costs, and how to finance.
• Short term working group to look at proportionality of assessments – It is expected that the initial impact will be officer time. This should in future lead to efficiencies for both applicants and authorities.
• Taking stock of the use of processing agreements – It is expected that the initial impact will be officer time. This should in future lead to efficiencies for both applicants and authorities.
• Improved cross council working to better align consents – It is expected that the initial impact will be officer time. This should in future lead to efficiencies for both applicants and authorities.
• Developing templates for Section 75 agreements – It is expected that the initial impact will be officer time. This should in future lead to efficiencies for both applicants and authorities.
• Devolving power to authorities to locally set fees – This would enable authorities to set their own fee levels and therefore we are unable to provide an estimate of what changes may be at this stage. Depending on the outcome of the consultation, further work to define any the parameters within which local fees could be set would be required. This would in turn require further consideration in relation to potential costs to business.
• Introducing an annual inflation increase in planning fees – Whilst this would increase the cost of submitting applications, an annual inflationary linked increase would provide some certainty and predictability to authorities and applicants. Previous changes to planning fees have been carried out on an ad-hoc basis, for example previous changes to fees have occurred in 2014, 2017 and 2022. Further work will be required if this proposal is supported - for example whether this should be applied retrospectively to the fee levels introduced in April 2022.
• Increasing Discretionary Charging – We are unable to provide further information at this stage. Authorities would potentially identify what services they introduce and could be responsible for setting the fee level/charge applicable, this may include sites not allocated in development plan and development within a Masterplan Consent Area.
• Introducing Fees for Appealing Planning Decisions – Examples of increased costs have been provided in the consultation paper, based on current planning application fees.
• Service Charge for submitting applications online – We have not provided any costs at this time as the consultation seeks views on a potential method of fee setting, rather than the likely amount that would be chargeable. Further work will be undertaken on potential fee levels which will be informed by the outcome of the consultation.
• Considering the potential to alter the threshold for applications under the Electricity Act – No examples have been provided at this stage as the consultation is focusing on the principle of change. Should this proposal progress, further work focusing on more specific proposals to establish costs and benefits will be undertaken.
• Considering whether Scottish Ministers should provide a voluntary contribution to planning authorities who are asked to comment offshore electricity generation – No examples have been provided at this stage - stakeholder views are being sought on the potential level of contribution to be provided to authorities. This would impact on Scottish Government income rather than directly affecting business. Planning authorities would benefit from additional income for a service which is already provided.
• Introducing a fee category for hydrogen projects – We are seeking views on the establishment of a new fee category for Hydrogen Developments. If it is progressed, further work will be undertaken on potential fee levels which will be informed by the outcome of the consultation.
• Consistent approach to fees for shellfish farming – Some information has been provided to demonstrate what the current fee is and seeks views on if that should be amended using a set example. We envisage the proposals, if taken forward, would provide a fairer and more consistent means of charging for this type of application.
• Increased fees for Prior Notification/Approval – Current fee levels have been provided. We are seeking views on current fee levels and if there should be any changes.

Intra-UK Trade

This policy is not likely to impact on intra-UK trade.

International Trade

This policy is not likely to impact on international trade and investment.

EU Alignment

This policy is not likely to impact on the Scottish Government’s policy to maintain alignment with the EU.

Scottish Firms Impact Test

We hosted a cross sector workshop with 50 delegates in November 2023.

We will consider how best to engage with business both during and post consultation to inform our approach to implementing any proposals.

Competition Assessment

It is not envisaged that these proposals will impact on competition between companies.

Having reviewed the four competition filter questions provided within the Competition & Markets Authority (CMA) guidelines for policy makers on competition assessment we are satisfied that the proposals contained within the consultation will not impact on competition within the marketplace.

Test Run of Business Forms

It is unlikely that additional business forms will need to be completed however local authorities may take it upon themselves to introduce additional forms as part of this development. If additional forms are created nationally, we will test run these forms with those who will be using them.

Digital Impact Test

To apply for planning permission, customers can access the eDevelopment Portal from the local authority website or through a Google search. Customers are then directed to a national planning application portal where they can submit their planning application as well as their building warrant application.

This is a digital process, accessible to all users of the planning system. This online process will not inherently change, however, it may be updated in areas to reflect changes to fees. Where users cannot access the online platform, local authorities can be contacted for further assistance. Downloadable versions of forms are also available from the Scottish Government website. They can be downloaded, completed and submitted in paper format to local authorities if required.

Legal Aid Impact Test

It is not expected that there will be any greater demands placed on the legal system by this proposal. Accordingly, it is not considered that there will be any effect on individuals’ right of access to justice through availability of legal aid or possible expenditure from the legal aid fund.

Enforcement, Sanctions and Monitoring

The Town and Country Planning Fees for Applications (Scotland) Regulations 2022 stipulates a fee shall be payable by the applicant to the planning authority on submission of an application for planning permission. Schedule 1 of the Regulations, provides a breakdown of the chargeable fees for different types of application.

Planning application fees are currently set nationally and will be the same in whatever local authority you submit an application.

The consultation paper highlights the new role of the National Planning Improvement Champion and the pilot of new National Planning Improvement Framework as a means to embed continuous improvement into the delivery of planning services.

Implementation and Delivery Plan

An implementation plan will be developed following the closure of the consultation taking account of responses.

Any changes to planning fees will require changes to regulations and be accompanied by a full BRIA with more detail on potential costs.

Post-implementation Review

n/a

Summary and Recommendation

n/a

Declaration and Publication

I have read the Business and Regulatory Impact Assessment and I am satisfied that, given the available evidence, it represents a reasonable view of the likely costs, benefits and impact of the leading options. I am satisfied that business impact has been assessed with the support of businesses in Scotland.

Signed: Joe FitzPatrick

Date:

Minister's name: Joe FitzPatrick

Minister's title: Minister for Local Government Empowerment and Planning

Scottish Government Contact point: Scottish Government Chief Planner

Contact chief.planner@gov.scot