Planning and Building Applications: Fees: Increase and new method of calculation

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A decision made 31 January 2011:

Decision Reference: MD-PE-2011-0016
Decision Summary Title:		Fee increases for Planning and Building Applications		Date of Decision Summary:	31 January 2011
Decision Summary Author:		Assistant Director - Development Control		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?		Written		Person Giving Oral Report:	Chief Executive Officer
Written Report Title:		Increase in Charges for Planning and Building Applications		Date of Written Report:	28 January 2011
Written Report Author:		Assistant Director – Development Control		Written Report : Public or Exempt?	Public
Subject: Introduce a new method of charging and an increase in charges for Planning and Building Applications for 2011 'as set out in the report dated 28/1/2011 attached'.
Decision(s): The Minister decided to increase charges made under the: Planning and Building (Fees) (Jersey) Order 2008 Introduce a new method of charging for Planning and Building Applications for 2011 'as set out in the report dated 28/1/2011 attached'.
Reason(s) for Decision: To increase fee income from applications in accordance with: a 2.5% cost of living uplift as agreed by the Treasury for all applications within the Order save for those for the erection of flats or dwellings or the extension of flats or dwellings (residential development) a new method of charging for residential development, in respect of Planning Applications, where the charge will be based on the area of the building rather than per unit.
Resource Implications: There are no resource implications.
Action required: Law drafting instructions to be produced to revise relevant fee orders
Signature: Senator F E Cohen			Position: Minister
Date Signed:	Ass Dir Initials		Date of Decision (If different from Date Signed): 31/01/2011
	CEO Initials

Planning and Building Applications: Fees: Increase and new method of calculation

Report to the Minister for Planning and Environment

Increase in Charges for Planning and Building Applications

Summary

1.1 This is a report to advise the Minister on the Department’s recommendations for changing the basis upon which planning applications for residential development are charged.

1.2 The current situation is that applications fees are charged on a per unit basis dependant on whether the new unit is a flat or a house. There is also a lower charge for applications between 1 and 5 units and higher charge for applications of more than 5 units.

1.3 It is proposed to move to a system whereby applications are charged on a square metre basis, dependant on the size of the unit. It is proposed that there are two rates of charge – a lower rate for single units (and extensions) and a higher rate for developments of more than one unit.

2.0 Rationale

2.1 The overall aim is to simplify the charging system, making it cheaper for smaller, single developments whilst charging more for larger or multiple developments. Extensions to dwellings would also be cheaper.

2.2 The basis for this change is that it will bring in greater equity into the charging system for residential development. This will reflect the ‘user pays’ principle and will ensure that larger schemes bear a fairer charge, as a proportion of the cost of the development. Costs to householders will generally be lower.

2.3 In line with this, the Minister is also at the advanced stages of reducing the number of developments which require planning permission. In particular, the changes to the Planning and Building (General Development) Order (such as domestic loft and garage conversions) will remove a level of work from the Department and an administrative burden from the customer. This will further benefit householder applicants.

3.0 Current charges

3.1 Fees for new residential development are charged as follows (figures are in £ sterling)

For each flat up to and including 5 units 306

For each additional flat 420

For each dwelling house up to and including 5 units 610

For each additional dwelling house 830

For each pre-fabricated portable dwelling unit 203

For an extension to a dwelling up to 20 sq. m. in area 102

For an extension to a dwelling over 20 sq. m. in area 203

4.0 Proposed Charges

4.1 For a single new dwelling (or extension to a dwelling)

£4.50 per sq. m.

For more than one dwelling, £8.50 per sq. m.

5.0 Comment

5.1 If adopted, this new fee strategy would make it cheaper for applicants of single, modest dwellings and extensions. Larger single dwellings would gradually become more expensive as they increase in size. For developments of multiple units, charges would generally be higher, in some cases significantly so.

6.0 Budget impact

6.1 In compiling these figures, the Department has been cognisant of the need to ensure that, not only does its income need to remain sufficient to support the service, but that there is an overall political aim to increase the proportion of the cost which the user pays by 2013. The bulk of the increases are proposed in 2011 and thereafter, the annual increases should be within the normal 2.5% cost of living range. However, this will be subject to review on an annual basis.

6.2 Having factored in the loss to the budget caused by increasing exemptions and reducing the cost of applications for extensions, it is estimated that the annual income derived from planning applications would increase by approximately £81,300 – this is an increase of 6.3% on 2010 figures.

7.0 Recommendation

7.1 It is recommended that the Minister:

(1) adopts this new strategy for charges for residential planning applications;

(2) adopts a further increase of 2.5% for all charges for planning and building control applications, in line with the cost of living

and instructs the Law Draftsman to prepare the necessary changes to the Planning and Building (Fees) (Jersey) Order 2008.

(3) instructs the Acting Finance Director request the approval of the Minister for Treasury and Resources for these increases.

Report prepared by ………………………..

Endorsed by ……………………………… 28th January 2011