Change to Planning Application fees

The Government has issued a consultation document on proposals to change the way that planning fees are set.

Under new proposals local Councils will be given the power to set their own fees to cover costs.  Councils will not be able to make a profit on fees but they will be able to recover the actual cost of submitting an application from applicants.  The argument for change is based around the fact that local taxpayers have had to make up any shortfall in revenue through their council tax bills based on the national fee structure.  However, the alternative argument is that the planning system exists to protect the public interest, and therefore the public should pay for at least some of this service, given that the right to develop your own land was removed by the Town and Country Planning Act.

There are three options being put forward:

1. Locally determined fees, based on costs at each individual Council

2. The same as option 1, but with a nationally set cap

3. Maintain the national scale, but with an increase by 10-15%

The issue that we have with option 1 is the uncertainty for clients.  Experience tells us that there is a massive variation in pre-application fees throughout the country.  Councils are not allowed to make a profit on these fees, but this has not stopped very large variations in fees.

Research by Arup in February 2009 suggested that the planning application fees were approximately 10 per cent below associated costs.  This was based on an overall average cost of £619 per application and an average fee of £563.  In Cheltenham we are aware that the average cost of an application is much higher – £896, compared to an average fee income of £370.  If this was used as a basis for a local ‘Cheltenham’ planning fee, the increased would be over 200%.  We therefore believe that there needs to be a degree of restraint, and we will be making suitable representations to the Government.

Other changes being actively considered are the removal of the ‘free-go’ applications (following a refusal or a withdrawn application) and charging a higher fee for retrospective applications.  These changes will have a number of implications, which we can discuss with individual clients in due course.  Finally, the question of whether or not Councils should have the ability to charge for listed building applications is raised, but this doesn’t form part of the Government’s plans for the moment.

If proposals on decentralising planning fees are taken forward following consultation, local Councils will be able to set their own fees from April 2011.  Councils will be given six months from April to October 2011 to publish their fees.  During that period they will be able to use the current fees set by Government, but these will be withdrawn in October 2011.