Local place plans - proposals for regulations: consultation

Annex A: Partial Business and Regulatory Impact Assessment

Title of Proposal

Proposals for Regulations on Local Place Plans

Purpose and Intended Effect

Background

1. Section 14 of the Planning (Scotland) Act 2019^[55] (the Act) amends the Town and Country Planning (Scotland) Act 1997 to introduce a new right for communities to produce Local Place Plans (LPPs). This is a new right for communities, should they wish, to produce plans setting out proposals for the development and use of land, with scope for these to form a part of the statutory development plan. They form part of a wider package of measures on improving community engagement in planning matters and building public trust arising from the Act.

2. Whilst there are already examples of community led plans, there has been no statutory link between such plans and the development plan for an area. Provisions in the Act make that link.

3. The Act did not contain provisions for the development, preparation, submission and registration of LPPs. It was considered appropriate that they were dealt with through secondary legislation rather than on the face of the Bill^{[56] [57]}.

Objective

4. The aim of the provisions is to significantly enhance engagement in development planning, effectively empowering communities to play a proactive role in defining the future of their places.

5. Recognising that community bodies are likely to be staffed wholly, or in part by volunteers, the provisions seek to provide a robust framework of legislation without imposing unnecessary financial and administrative burdens on them.

Rationale for Government Intervention

6. The independent planning review panel's report^[58] recommended the introduction of LPPs. Its view was that communities should be empowered to bring forward their own plans, and those plans should form part of the statutory development plan. The recommendation was based on evidence gathered by the panel that suggested that more can and should be done to involve people in planning. In its response^[59] to the report, the Scottish Government stated that it would focus on more effective methods of engaging people at an earlier stage in the planning process.

7. These measures contribute to the following performance indicators contained in the National Performance Framework:

• We live in communities that are inclusive, empowered, resilient, and safe.
• We value enjoy and protect and enhance our environment.

Consultation

Within Government

8. As procedural matters, responsibility for these issues lies mainly with the Government's Planning and Architecture Division. However, with regard to measures pertaining to the relationship with community planning, officials discussed the proposals with colleagues within the Government's Public Service Reform, Public Bodies & Third Sector Team.

Public Consultation

9. LPPs formed part of the wider review of the Scottish Planning System undertaken by an independent panel. This involved evidence gathering sessions and a general call for information. Since the panel reported in 2016, there have been two public consultations on the way ahead^{[60] [61]}, before a Bill was introduced to Parliament in 2017 which became the Planning (Scotland) Act 2019. Communities responded throughout the Parliament's scrutiny of the Bill.

10. As part of the arrangements for developing proposals, the Government created a community engagement working group. The proposals were shared with this group in advance of the formal consultation.

11. There will be a further public consultation between March and June 2021 on the regulations required for detailed implementation.

Business

12. There may be some tangential implications for community engagement practitioners and planning consultants who may see the opportunity to support communities in preparing an LPP. Businesses may also have an interest in the proposals contained in an LPP.

13. Further discussions with a number of specific communities, planning authorities and community engagement practitioners will be conducted during the public consultation in order to obtain a firmer idea of the impacts on communities, the public sector and business of the proposed changes.

Options

14. This section looks at each measure and the options for each proposal.

Introduction of requirements on community bodies to have regard to any locality plan which may be in place within an area

Option 1: Do nothing

15. In this option, regulations would remain silent about the inclusion of additional matters which the community body would have to have regard to. Requirements would remain as they are in primary legislation. However, we have received a clear policy steer that as well as spatial planning documents, community bodies should also have regard to community planning documents.

Option 2: Require community bodies to have regard to the Locality Plan

16. We have received a clear policy steer that as well as spatial planning documents, community bodies should also have regard to community planning documents. We consider that the minimum requirement should be for the community body to have regard to any Locality Plan which is in place covering the area of the LPP. This was set out in the Policy Memorandum^[62] which was published alongside the Planning Bill.

17. Locality Plans are prepared by Community Planning Partnerships and set out local outcomes to which priority is to be given by the community planning partnership with a view to improving the achievement of the outcomes in the locality.

Option 3: Extend the requirement to a wider range of documents

18. We have additionally considered if there are further matters which the community body should have regard to. This has included: scope to consider the plans and strategies of community planning partners; having regard to the Local Outcome Improvement Plan (LOIP) for the area; and having regard to community action plans prepared by development or community trusts.

19. With the community body having to have regard to both the National Planning Framework (NPF) and LDP in preparing the LPP, a wide range of public sector national and local plans, strategies and projects should have already been considered / reflected in the LPP. In addition, the 2019 Act will require the planning authority to take into account the LOIP when preparing its LDP.

20. We see the value of community bodies using the community action plans that have been prepared in their area as they are likely to give an initial steer as to the community's aspirations. However, we plan to place this in guidance rather than make it a legal requirement.

21. We are therefore not proposing to include other plans, programmes or strategies other than the Locality Plan, where one is in place and so proposing Option Two.

Requirements on the form and content of an LPP

Option 1: Do nothing

22. In this option, regulations would remain silent about the form and content of the LPP. Community led plans tend to be in writing but are supplemented through the use of diagrams, maps, photographs and illustrations. Any matters pertaining to this option would be provided in guidance.

Option 2: Place requirements on the form and content of LPPs

23. As noted above, community action plans tend to be in writing but are supplemented through the use of diagrams, maps, photographs and illustrations. Whilst we would not want to stifle the creative preparation of LPPs, we consider that there is scope for the form and content to be prescribed to ensure that the proposals contained within LPPs can be readily communicated to the wider community and to the planning authority. We therefore propose that the focus should be on a clearly expressed statement combined with a spatial representation of the community's proposals for the area contained in a map which shows the community's boundary of its LPP. We are envisaging, as noted above, an LPP which is clear and visual, using graphics, photographs, and maps. We are proposing to take forward Option 2.

Steps to be taken before preparing the Local Place Plan

Option 1: Do nothing

24. In this option, regulations would remain silent about the steps to be taken before preparing the LPP. Our main consideration has been on community engagement. Community bodies take engagement with their communities seriously and take positive steps to engage with their communities to ensure that they have evidence of their community's aspirations and views. This is already taking place without a requirement in law.

Option 2: Require community bodies to engage

25. Evidence shows that people are keen to be involved in decisions about their local places. The consultation paper notes a number of examples across a range of societal groups. Inserting a requirement to engage provides an opportunity to capture that aspiration. Additionally, not providing a statutory link could provoke concerns that the community body may not be acting in a representative or transparent manner.

26. We are proposing not to include any requirements on community bodies in preparing their LPP (Option 1). We will consider further if such a requirement is needed in light of responses to the consultation.

Taking on board the views of councillors

Option 1: Do nothing

27. In this option, regulations would remain silent about how community bodies take on board the views of councillors.

Option 2: Community bodies to seek the views of councillors

28. Local councillors have a key role in establishing planning policies for their area. They might also be able to draw on their experiences of representing people in the area, or act as important intermediaries for community bodies as they seek to prepare or garner support for their local place plans. They may also be residents within a community. Whilst we are not currently proposing a wider requirement to consult in advance of preparing the LPP, we can see the value in a community body seeking the views of the ward councillors for the area of the LPP and are therefore proposing Option 2. We are inviting consultees to respond to how this could be taken into account.

Submission of Local Place Plans

Option 1: Do nothing

29. In this option, regulations would remain silent about information which must be submitted alongside an LPP. We consider that a minimum of information should be provided which would allow the community to understand the context of the LPP and for the planning authority to have sufficient information to validate that the document provided by the community body is an LPP.

Option 2: Provision of evidence on LPPs

30. We consider that requiring community bodies to submit information alongside their proposals, which provides evidence that they form a valid LPP, will assist both the community body and the planning authority. We recognise that the community body may want to provide additional information, such as how the proposals are to be delivered. We are therefore proposing Option 2.

Registration of Local Place Plans and the establishment and maintenance of a Register

Option 1: Do nothing

31. In this option, regulations would remain silent about the establishment and maintenance of the register of LPPs. We do not consider that the primary legislation provides sufficient detail for planning authorities to establish and maintain such registers.

Option 2: Provisions to support the register of LPPs

32. The planning authority must place a valid LPP on its register. We are looking to build upon the requirements that planning authorities already have for their planning registers for planning applications. We therefore propose that the LPP register is to be kept and publicised in a similar manner. We are however seeking views on the additional information which is to be kept on the register and when it should be removed.

Sectors and groups affected

Communities

33. LPPs offer the opportunity for a community led but collaborative approach to creating great local places. LPPs can support community aspirations on the big challenges for a future Scotland such as responding to the global climate emergency and tackling inequalities. Local people will have the opportunity to engage meaningfully and have a positive influence in the future planning of development in their areas. And this opportunity will be followed through into the LDP.

Planning authorities

34. Planning authorities will be a key supporting partner for communities as they develop their LPPs, including as partners in community planning partnerships. While the regulations focus primarily on requirements for community bodies, the planning authority will play a key role in registering LPPs onto their registers.

35. Councillors will also have an opportunity to share their views in the preparation of LPPs. Local councillors might be able to draw on their experiences of representing people in the area, or act as important intermediaries for community bodies as they seek to prepare or garner support for their local place plans. They may also be residents within a community.

Business

36. Business will have some interest in the development of LPPs as the proposals contained with an LPP will influence the development plan for an area, and therefore decisions made by the planning authority on planning applications.

37. There may be some tangential implications for community engagement practitioners and planning consultants who may see the opportunity to support communities in preparing an LPP.

Benefits

Introduction of requirements on community bodies to have regard to any locality plan which may be in place within an area

38. There is a significant opportunity to link LPPs with wider Locality Plans that have emerged in some areas as a result of the Community Empowerment (Scotland) Act 2015. As with the wider provision on aligning the LDP with LOIPs, this could create efficiencies, reduce duplication and prioritise resources to areas where there could be particularly significant benefits for communities and inclusive growth.

Requirements on the form and content of a Local Place Plan

39. We are envisaging an LPP which is clear and visual, using graphics, photographs, and maps. The requirement to prescribe the form and content of an LPP should ensure that the proposals contained within LPPs can be readily communicated to the wider community and to the planning authority when it is taking the proposals into account.

Steps to be taken before preparing the Local Place Plan

40. Evidence shows that people are keen to be involved in decisions about their local places. It also shows that community bodies take engagement with their communities seriously and take positive steps to engage. By recognising this in guidance rather than legislation, we consider that this will provide for creative engagement with the wider community.

Taking on board the views of councillors

41. With their key role in establishing policies for their area, local councillors can provide an invaluable bridge between the local authority and the community body. By seeking to engage them at the preparation stage of an LPP, councillors will be able to use their skills and experience to advise and garner support for the development of the LPP.

Submission of Local Place Plans

42. Requiring community bodies to submit information alongside their proposals will provide evidence that they form a valid LPP. This will benefit the community body as it should reduce the chances that the planning authority will not validate the LPP. It will assist the planning authority in its assessment of the proposals.

Registration of Local Place Plans and the establishment and maintenance of a Register

43. The 2019 Act requires that the planning authority must have a register and place any valid LPP on such register. We are looking to build upon the requirements that planning authorities already have for their planning registers for planning applications. This will benefit the development of the registers and also provide for transparency for community bodies.

Costs

Preparing and submitting a Local Place Plan

44. There is limited information in the public domain on the costs of individual elements of developing an LPP. Defining the costs is made more challenging as it will be for the community body to develop the LPP within a light-touch regulatory framework. And LPPs are likely to vary in costs depending on the complexity and size of the proposal.

45. In support of the Scottish Parliament's scrutiny of the 2017 Planning Bill the Scottish Government prepared an accompanying Financial Memorandum^[63]. This was updated following the Stage 2 scrutiny^[64].

46. In terms of estimating the cost of preparing LPPs, the nearest equivalent is neighbourhood planning in England, under the Localism Act 2011. Locality published a number of case studies of neighbourhood planning which found the average cost to be around £13,000^{[65] [66]}. This is a monetised cost of all the effort required, some of which will be covered by volunteering or support from public or third sector bodies. This figure appears to match well with the level of grant understood to have been received by communities supported by the Coalfields Regeneration Trust, of between £10,000 and £15,000.

47. Evaluation of Community-led Design Initiatives: impacts and outcomes of the Charrettes and Making Places funds^[67] noted that the total cost of projects ranged from just over £8,000 to under £75,000. The variance in total costs was due to a wide range of factors, including the number of design events being run through each project (ranging from one to many), geography, facilitation costs, and the focus of the projects.

48. More recently the Scottish Communities Alliance published a report on community action planning^[68]. In coming to an estimated cost of around £17,000 for plan preparation, it noted that 'there are significant variables depending on approach, nature of community, size of the site and purpose for the plan….' The primary costs associated with this estimate could be attributed to consultants' fees.

49. It is, therefore, assumed that the average cost of preparing an LPP will be in the region of £15,000, though many of these costs are intrinsic in the 2019 Act. Estimating three LPPs per year within each local authority area, this results in a total cost of around £1.4-1.5m per year for communities.

50. The costs set out below are estimates of the additional costs which can be attributed to the regulations. Some of these costs will form part of the overall estimated cost of preparing an LPP which have been prepared previously.

Introduction of requirements on community bodies to have regard to any locality plan which may be in place within an area

51. We would not envisage that an additional requirement to have regard to the Locality Plan would have a significant cost to the community body within the context of what is already required within the 2019 Act.

Requirements on the form and content of a Local Place Plan

52. We are envisaging an LPP which is clear and visual, using graphics, photographs, and maps. This may require the costs of a designer and for the access to photographs and mapping facilities. We would envisage this could cost up to £2,500. Though these costs could be reduced through access to resources within the community.

Steps to be taken before preparing the Local Place Plan

53. Communities take engagement seriously and will take positive steps to engage. Even without a legal requirement, there will be an expectation from the wider community that they will be engaged in the development of the LPP. Costs are likely to be accrued through venue hire and catering, support for attendees (including translators, childcare etc), plus materials and facilitators. We would envisage this could cost in the region of £3,500 depending on support from the community / public sector or received in kind.

Taking on board the views of councillors

54. We would not envisage that an additional requirement to seek the views of local ward councillors would have a significant cost to the community body within the context of what is already required within the 2019 Act.

Submission of Local Place Plans

55. Requiring community bodies to submit information alongside their proposals will provide evidence that they form a valid LPP. The development of a How to Guide and guidance should assist Community Bodies by providing a clear steer as to the requirements for submitting the LPP. However, information will need to be collated / presented and potentially consulted upon. Including potential costs additional to any consultation such as printing of documents or setting up a webpage should be added to the costs of preparing the additional information. We would envisage this could cost in the region of £4,000.

Registration of Local Place Plans and the establishment and maintenance of a Register

56. The requirement to establish a register and map of LPPs will have some costs, which may fall to planning authorities or to the Scottish Government. In line with other registers of information the updated Financial Memorandum to the Planning Bill considered that it would cost around £10,000 for each authority to set up such a register, and £5,000 per year to maintain it, costing up to £2,040,000 over a 10 year period.

57. Transforming Places Together: digital strategy for planning^[69] sets out the Government's intention to develop an online central register of Local Place Plans, as part of the end to end planning system. This figure would be reduced to around £40,000 for the Scottish Government, for set-up and technical maintenance, and £680,000 for planning authorities for maintaining the information.

Scottish Firms Impact Test

58. This legislation should not affect significantly the overall costs for individual businesses of engaging in the planning system. Local businesses may see value in engaging in the development of an LPP in addition to the LDP.

Competition Assessment

59. There are no obvious impacts on competition of these proposals. The proposals would not favour one such business over another per se.

• Will the measure directly or indirectly limit the number or range of suppliers?

60. No. It does not involve significant additional costs in the overall context of the planning system.

• Will the measure limit the ability of suppliers to compete?

61. No. As above.

• Will the measure limit suppliers' incentives to compete vigorously?

62. No. As above

• Will the measure limit the choices and information available to consumers?

63. No. As above.

Consumer Assessment

64. The costs involved seem to have limited effect on the purchasers of goods and services. To the extent that the public are consumers of planning services, then the proposed regulations should improve their opportunities for engagement.

• Does the policy affect the quality, availability or price of any goods or services in a market?

65. No.

• Does the policy affect the essential services market, such as energy or water?

66. No.

• Does the policy involve storage or increased use of consumer data?

67. No.

• Does the policy increase opportunities for unscrupulous suppliers to target

consumers?

68. No.

• Does the policy impact the information available to consumers on either goods or services, or their rights in relation to these?

69. Yes. In so far as the planning system is a service and the public are its consumers. The regulations on the LPP register will provide a framework for the information available to the general public.

• Does the policy affect routes for consumers to seek advice or raise complaints on consumer issues?

70. No.

Test run of business forms

71. No new forms.

Digital Impact Test

72. The use of on/off line models of engagement are not prescribed in the regulations. Which method is used will be for parties to decide in the circumstances of the case.

• Does the measure take account of changing digital technologies and markets?

73. Yes. The use of on/off line models of engagement are not prescribed in the regulations. Which method is used will be for parties to decide in the circumstances of the case.

74. In developing the proposals on access to the register, we have sought to ensure it is available both on and offline.

• Will the measure be applicable in a digital/online context?

75. Yes.

• Is there a possibility the measures could be circumvented by digital / online transactions?

76. No.

• Alternatively will the measure only be applicable in a digital context and

therefore may have an adverse impact on traditional or offline businesses?

77. No.

• If the measure can be applied in an offline and online environment will this in itself have any adverse impact on incumbent operators?

78. No.

Legal Aid Impact Test

79. These changes would seem unlikely to affect claims for legal aid.

Enforcement, sanctions and monitoring

80. There is no requirement on a community body to prepare an LPP. However, where a community body seeks to prepare an LPP the Act sets out the framework of requirements that the community body must comply with. There is the potential that should a community body fail to comply with the requirements, then the planning authority is required to decline to register the LPP.

81. The intention is that the regulations will come into force around the end of 2021. Stakeholders will receive notice of the publication through the Government's media channels such as its website, e-mail alerts and other social media channels.

Post-implementation review

82. Provisions within the 2019 Act insert section 15B into the amended Town and Country Planning (Scotland) Act 1997 and provide for a review of LPPs. Scottish Ministers are to prepare a report on the review and lay it in Parliament. The provisions also require Ministers to undertake the review as soon as practicable 7 years after Royal Assent, namely July 2026. This review would provide an opportunity to consider any changes to these provisions.

Summary and recommendation

83. These regulations have emerged to provide administrative legislative requirements for LPPs as set out in the Planning (Scotland) Act 2019. This followed an extensive review of the planning system.

84. Whilst this partial BRIA has identified extra financial costs to all parties, the benefits of using a collaborative approach to placemaking has the potential to improve trust in the planning system and support collaboration over conflict.

Summary Costs and Benefits Table

Summary and recommendation

The Scottish Government proposes to lay regulations on the preparation, submission and registration of LPPs to help improve engagement in the Scottish planning system.

It is a challenge to estimate the costs of the development of LPPs accurately as the regulations seek to provide a light touch leaving much to the discretion of the community body.

Based on the figures estimated thus far, the costs to communities of preparing LPPs is in the region of £1.4M per annum. Based on support from the Scottish Government to develop a centralised register, costs to all planning authorities would be in the region of £70,000 per annum for maintaining the register.

Subject to the views received in the forthcoming public consultation, the proposals, as a package, would appear to represent a proportionate response.

Option	Total benefit per annum: - economic, environmental, social	Total cost per annum: - economic, environmental, social - policy and administrative
1. Additional requirement on the community body having regard to the Locality Plan	Improved alignment of the LPP with community planning aspirations for the area	Minimal additional costs to community bodies
2. Prescribed Form and Content of the LPP	Improved accessibility of proposals through a concise statement and associated map	Total cost across the community sector estimated at £230,000
3. Steps to be taken before preparing the Local Place Plan	Community Bodies will have the scope to consider the consultation activities appropriate to their circumstances.	Total cost across the community sector estimated at in the region of £325,000
4. Taking on board the views of councillors	Improved opportunities for engagement for the community body with local councillors	Minimal additional costs for community bodies. Minimal additional costs for planning authorities
5. Submission of Local Place Plans	Assist the community body in submitting an LPP which is accepted by the planning authority as legally sound.	Total cost across the community sector estimated at in the region of £370,000
6. Maintenance of a register of LPPs	A register available to the public will provide for transparency and accountability.	Increased costs for planning authorities in the region of £70,000.
7. Total cost of preparing an LPP to communities	LPPs will provide communities with an opportunity for their proposals to form an integral part of the statutory planning system.	Costs in the region of £1.4 – 1.5m for communities.

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/will be assessed with the support of businesses in Scotland.

Signed: Kevin Stewart

Date: 23 February 2021

Kevin Stewart, Minister for Local Government, Housing and Planning

Scottish Government Contact point: Graham Robinson