Developers could contribute more as Moray Council scraps cap
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A CAP on the amount developers contribute towards infrastructure improvements has been scrapped by Moray Council.
The maximum the local authority could seek towards the cost of offsetting the impact of developments on roads, schools and other public services was £6500 per unit, however, at a meeting of the Planning and Regulatory services committee, councillors unanimously agreed to remove the cap and authorise planning staff to negotiate more appropriate levels of financial contribution from developers.
Local councillor George Alexander believes the move will benefit the area.
He said: "This decision will no doubt have repercussions but the Moray taxpayer cannot go on subsidising developers.
"For years we have been left having to provide the balance of finance needed to bring services up to the level required as a result of continued expansion of many of our communities, particularly Forres and Elgin."
The council will calculate the level of contribution required on a case-by-case basis, and base the figure on existing policy and national guidelines. Developers disputing the amount will have to evidence their claims to demonstrate the contribution renders the development unviable.
A planning officer said: "The council continues to bridge the gap to provide the necessary infrastructure as a result of the low level of developer obligations.
"By removing the cap, the number of viability claims will likely increase and the removal of the cap does not mean that the Council will achieve the full cost of infrastructure, as each case will have to be treated on its merits.
"It is however likely that more than £6500 per residential unit will be secured towards infrastructure requirements and the Council`s contribution towards the cost of infrastructure will therefore be reduced."
Single houses built by private self-builders in the countryside will also be required to contribute towards the full cost of infrastructure.
Full guidance has been drafted to assist developers, and this will be subject to a six-week period of consultation that started on January 6. The removal of the cap will take place in the summer of 2020 with the adoption of the new local development plan for Moray.
Springfield Properties have built a number of new housing estates off Grantown Road over the last decades.
Chief executive, Innes Smith, believes the removal of the cap will negatively affect development in the area.
He said: "A number of years ago Moray councillors recognised that a sharp rise in developer contributions was likely to have a negative impact on housing delivery and economic development. To prevent this, they applied a developer contribution cap of £6500 for each new home built.
"We are aware the council has severe pressure on their finances, however the decision to remove this cap will impact the viability of building new homes, and in certain smaller, rural locations it may no longer be possible to build homes. A reduction in house building and economic development will only hurt council finances and reduce growth of the local economy."
