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London Borough of LambethLocal Development Framework

Draft revised S106 planning obligations Supplementary Planning Document

For consultation July 2013

Contents

1 The purpose of this document ...........................................................................................................................4

2 Lambeth’s growth agenda .......................................................................................................................................8

3 The legislative context ................................................................................................................................................12

4 Negotiating planning obligations in Lambeth.............................................................................18

5 Contributions and benefits to be delivered through Section 106 planning obligations ...............................................................................................................24

A Affordable housing ...................................................................................................................................................26

B Securing employment and economic activity arising from development ..............................................................................................................................30

C Community facilities ...............................................................................................................................................38

D Transport ...............................................................................................................................................................................42

E Public realm ......................................................................................................................................................................48

F Sustainable development ............................................................................................................................56

G Support to town centres .................................................................................................................................60

6 Procedure and management ...........................................................................................................................62

Appendix 1 Policy background to Section 106 planning obligations SPD ...................................66

Appendix 2 Glossary .................................................................................................................................................................................................68

The purpose of this document

1

6

This document sets out the Council’s revised approach in seeking Section 106 planning obligations, once Lambeth’s Community Infrastructure Levy (CIL) has been adopted.

The main aims of the document are to:

n Underline the borough’s commitment to growth and how new development can support this

n With the advent of CIL, explain the Council’s approach to planning obligations to local residents, developers and the wider community

n Improve transparency in the priority and calculation of planning obligations;

n Provide applicants with greater certainty on when planning obligations will be sought;

n Where appropriate, to take into account the cumulative impact of clusters of development in the borough and explain how this will be dealt with through the use of planning obligations

Draft revised S106 planning obligations

This is a draft for public consultation. Following public consultation the Supplementary Planning Document (SPD) may be further revised, taking into account comments received. The Council envisages that the SPD will be adopted and be in place when CIL is also adopted. The provisions of the SPD Section 106 Planning Obligations (updated July 2010 & April 2012) will be in force until the Lambeth CIL is adopted.

The purpose of this document 7

Lambeth’s growth agenda

2

10 Draft revised S106 planning obligations Lambeth’s growth agenda 11

Growth and new development

Lambeth is a central London borough with huge opportunity to attract investment and create jobs. Forecasts suggest that the borough has the potential to create over 30,000 new jobs in the next 20 years. As such, the Council will look to encourage sustainable economic growth across the borough.

Inherent in this approach to growth is the intention that with the right support, local people, businesses and places can participate in the opportunities growth brings and subsequently prosper.

This will include a focus on interventions to support increasing jobs and the economic value of goods and services in the borough. However, it will also require a focus on quality of life, income redistribution and economic participation.

New development is central to achieving these goals. High quality affordable homes, employment and recreation opportunities are fundamental building blocks of successful economies and will help to drive forward the transformation of key neighbourhoods and centres across the borough.

Equally important is the enabling transport, utilities, environmental and socio-economic infrastructure, along with employment and skills provision, which new development must contribute to ensure the impacts from development are positively addressed. This will help create attractive and liveable neighbourhoods, competitive business locations and thriving town centres with opportunities for all Lambeth’s citizens.

The use of the Community Infrastructure Levy (CIL) and Section 106 planning obligations will play a vital role in supporting this agenda.

The Co-operative Council

Growth is also a core element of the move to becoming a Cooperative Council. Working together with local citizens to understand the strengths and needs of Lambeth’s communities is vital part of this process. The Community Plan sets out the Council’s aspirations to deliver against three overarching outcomes:

n More jobs and sustainable growth

n Communities feel safer and more resilient

n Cleaner, greener streets

The use of Section 106 planning obligations, in conjunction with CIL will help to achieve this, helping to ensure that the high level of growth anticipated in Lambeth can help deliver benefits in line with the priorities of Lambeth’s residents, workers and visitors.

The legislative context

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14

Community Infrastructure Levy (CIL)

In the past, Lambeth Council has sought to address the impacts of new development through the use of planning obligations, under Section 106 of the 1990 Town and Country Planning Act. However, the future role of planning obligations will change going forward, with the introduction of CIL.

The CIL is a charge that local authorities will be able to collect on new development in their area to help fund new infrastructure required to support growth. CIL will be charged when planning permissions are implemented and will be based on a formula relating to the type and size of development. CIL is mandatory for all qualifying development. Affordable housing and development by charities will be exempt.

The government’s view is that CIL provides the best framework and the preferred means of pooling funding for the infrastructure required to support new development. It will allow for a better understanding of development costs earlier in the process and therefore provide more certainty.

As a CIL charging authority, Lambeth Council is required to set out a list of those projects, or types of projects, which will be funded by CIL. This is called the Regulation 123 list.

CIL charges applicable in Lambeth

Once the Lambeth CIL is adopted there will be two CIL charges payable on qualifying development in the borough.

Mayoral CIL From 1 April 2012 the Mayor of London’s CIL came into operation. The purpose of this levy is to contribute to the funding package for the construction of the Crossrail line. The Council is responsible for collecting this charge on all new development within the borough over 100sq m (excluding affordable housing and development by charities for charitable purposes).

The charge for new development in Lambeth is £35 per sq m of qualifying development. The details of this are available at:http://www.london.gov.uk/publication/mayoral-community-infrastructure-levy

Lambeth CIL The Council is currently consulting on the introduction of the Lambeth CIL Charging Schedule, alongside consultation on this draft revised Section 106 planning obligations SPD. The details of the current proposal set out in the draft charging schedule are available at:http://www.lambeth.gov.uk/Services/HousingPlanning/Planning/CommunityInfrastructureLevy.htm

Draft revised S106 planning obligations The legislative context 15

Section 106 obligations

As CIL will be used to fund identified infrastructure across the borough, its introduction places restrictions on the future use of Section 106 planning obligations. Funding for those items included on the CIL Regulation 123 List, by default, cannot normally be sought through Section 106 planning obligations. This is to avoid the double charging of development for the same infrastructure.

However, as part of the Council’s commitment to ensuring sustainable growth across the borough, Section 106 planning obligations will still be sought where additional site-specific interventions are required, which are not funded through CIL. The obligations will respond to local conditions and allow development to proceed and is a separate process from the CIL charge. CIL Regulation 122 states that planning obligations should only be sought where they meet the following tests:

n Necessary to make the development acceptable in planning terms

n Directly related to the development

n Fairly and reasonably related in scale and kind to the development

To this end, the Section 106 planning obligations system in Lambeth will continue to be used to secure on-site affordable housing and justified site-specific mitigation requirements.

Furthermore, under the CIL regulations, after the adoption of a CIL charging schedule, or after April 2014, whichever is earlier, it will not be possible to pool Section 106 planning obligations from more than five developments for infrastructure purposes, even if the infrastructure concerned is not included in the Regulation 123 list.

Planning policy

The appropriate use of Section 106 obligations is articulated in planning policy at the national (National Policy Planning Framework – (NPPF)), regional (London Plan) and local (Lambeth Core Strategy) level. Within the Core Strategy, the relevant umbrella planning policy dealing with requirements in the Core Strategy is Policy S10 – Planning Obligations. A full policy review is included as Appendix 1.

The Core Strategy is in the process of being updated, with the new version to be included in a new consolidated policy document, the Local Plan. The draft Local Plan was consulted on in the first half of 2013 and is due to be adopted in early 2015. Following this, this Section 106 planning obligations SPD will be further updated to align fully with this single Lambeth planning policy document.

Appropriate use of planning obligations

As well as CIL, the use of Section 106 planning obligations needs to be considered alongside other appropriate tools, including:

n Planning conditions

n Unilateral undertakings

n Highway Improvements – Section 278 Agreements

Planning conditions These are used where required interventions relate directly to the physical development and its construction on-site. They form part of the granting of planning permission and are fully drafted at the point of determination of a planning permission. In line with the NPPF, the conditions should be used instead of planning obligations where this is possible. Indeed Section 106 planning obligations should only be used where it is not possible to address unacceptable impacts through a planning condition.

Unilateral undertakingsA unilateral undertaking is a form of Section106 agreement, where the developer submits proposals for a Section 106 planning obligation without prior agreement with the local planning authority. The undertaking is submitted unilaterally, alongside the planning application, or with planning appeal submissions. Although not generally encouraged, unilateral undertakings may be acceptable for straight forward or smaller schemes.

Highway Improvements – Section 278 Agreements A Section 278 agreement (of the Highways Act 1980) is an agreement between the highway authority and a third party for the costs of modifications to the existing public highway network to facilitate or service a proposed development to be met by said third party. Examples of works covered by this type of agreement could include road safety improvements, such as traffic calming, street lighting, improved facilities for pedestrians and cyclists, roundabouts, signalised junctions, priority junctions, new accesses to development sites and footway and carriageway resurfacing.

16 Draft revised S106 planning obligations The legislative context 17

Negotiating planning obligations in Lambeth

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Local infrastructure plans

Local communities are in a strong position to assess the direct impacts of development on their areas. As such, the Council is committed to community engagement to support its growth agenda and to help identify and advise on associated infrastructure need.

Section 106 planning obligations will work together with CIL (once adopted) and other funding sources to provide the full range of strategic and neighbourhood level infrastructure necessary to support development and growth. This will change the way infrastructure is planned across the borough.

As such, while communities will continue to be consulted on individual planning applications, the focus on engagement will shift to earlier in the planning process. The Council will co-produce local infrastructure delivery plans, with communities, business and stakeholders. These will identify, prioritise and cost projects to be delivered, guiding the expenditure of CIL, Section 106 and other resources. This should ensure the plans are reflective of local needs, build on existing assets and maximise opportunities.

Pre-application advice and identification of requirements

The Council encourages developers to enter into an early dialogue with its Planning Service and the GLA (in schemes referable to the Mayor of London) to identify issues and their possible solution before a planning application is made. This process can also help to understand any known local community views and priorities for planning obligations.

In relation to negotiations on planning obligations, this SPD will provide the basis for pre-application discussions and advice. Where relevant, negotiations on planning obligations will also be set within the context of development briefs and area guidance SPDs. In addition major development schemes may be linked to specific identified projects.

Lambeth Council provides a pre-application advice service for major applications. Information on this service can be found at:Website: http://www.lambeth.gov.uk/NR/exeres/468F44D1-CF88-4A80-8BB1-ED7B9BA8FF43.htmEmail: [email protected]: 020 7926 1180.

The GLA also provides a pre-application advice service for advice on applications referable to the London Mayor. Contacts for the GLA and Transport for London are set out below:Greater London Authority Website: http://www.london.gov.uk/priorities/planning/strategic-planning-applications/pre-planning-application-meeting-serviceTelephone (main switchboard): 020 7983 4000 Transport for London

Website: http://www.tfl.gov.uk/businessandpartners/15395.aspxEmail: [email protected]

Draft revised S106 planning obligations Negotiating planning obligations in Lambeth 21

Viability

Where the viability of a scheme is jeopardised due to site constraints or other factors, it is recommended that developers should seek advice though the pre-application process outlined above, prior to the formal submission of a planning application.

Where viability is a concern, it is essential that all proposals are submitted with a full viability assessment, which contains sufficient evidence to enable officers to properly assess a scheme. Such an assessment must be completed in accordance with the guidelines set out in the GLA’s Affordable Housing Development Control Toolkit (2010), or an alternative toolkit, approved by the Council.

The developer will be required to meet the Council’s cost of evaluating any appraisals, which will include the appointment of qualified independent assessors.

Planning Application Committee reporting & resolution

Typically, planning applications that generate the requirement for planning obligations are normally reported to the Planning Applications Committee (PAC) for determination. Any required planning obligations are set out as Heads of Terms or categories to be sought as part of a Section106 agreement. Preliminary drafting of the S106 agreement may take place prior to consideration of an application by the PAC.

It is the PAC that decides planning applications and may or may not agree with the officer’s recommendation on any individual planning application. Planning applications can only be decided on planning issues and not as a result of the financial contributions, or the extent of other planning obligations. It should be noted that the PAC may seek agreement to additional planning obligations, if it considers that those recommended do not fully mitigate the impact of the proposed development.

Minor planning applications and resulting planning obligations may be dealt with under delegated officer authority, e.g. car free schemes and minor traffic access works.

Post decision

Following the decision to grant planning permission, the Council’s solicitors and planning officers in liaison with the applicant’s solicitors will complete the setting out of the planning obligation(s) in the form of a binding legal agreement. The agreement will set out the detail of the planning obligations, including the trigger mechanisms for payment of financial contributions, schedules of works and other commitments to be undertaken by the developer, as well as obligations upon the Council.

On the completion and signing of a Section106 legal agreement, planning permission is formally issued. The legal agreement is placed on the statutory register and is available online together with the decision notice.

The signed agreements are registered as a local land charge against the land, copies of which can be provided to the public on payment of an administration fee to the Council. The Section 106 agreement is registered on the Council’s planning obligation database, which is used for monitoring and project management purposes. A pre-commencement letter is normally sent to developers reminding them of their obligations and the trigger mechanism for payment.

22 Draft revised S106 planning obligations 23 Negotiating planning obligations in Lambeth

Contributions and benefits to be delivered through Section 106 planning obligations

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26 Draft revised S106 planning obligations

5A

Lambeth’s housing need is among the highest in the country. There is a pressing requirement for more affordable housing in the borough, especially for families. It is therefore critical that growth in Lambeth improves the quality of live for all, by providing a good provision of affordable housing.

Housing affordability also impacts on the competitiveness of an area by impacting on an employer’s ability to attract and retain staff. It also affects the size, range and quality of the labour market pool in the borough, As such, it is essential that a sustainable and growing economy is able to provide a full range of accommodation, including affordable housing, to support its workforce and share the positive benefits of growth.

To this end, securing the provision of new affordable housing in all major developments will be given a high priority in terms of planning obligations.

Affordable housing Application

This applies to sites and buildings capable of providing 10 or more units, or 0.1 ha or more in size (irrespective of the number of units). The artificial subdivision or phasing of sites with the effect of circumventing this policy will not be permitted.

The NPPF definition for affordable housing includes social rented, affordable rented and intermediate housing, provided to eligible households whose needs are not met by the market. The NPPF states that:

n Eligibility is determined with regard to local incomes and local house prices.

n Affordable housing should include provisions to remain at an affordable price for future eligible households or for the subsidy to be recycled for alternative affordable housing provision.

Housing developers are required to address the affordable housing policy for qualifying developments through:

n Tenure and mix

n Viability assessments

n On-site provision, where ever possible

n Review mechanisms

Tenure and mix

At least 50% of housing should be provided where public subsidy is available, or 40% without public subsidy, subject to housing priorities. Where these targets cannot be met, the Council will require independently validated evidence of scheme viability. Alternative housing mixes might be acceptable where there is a clearly demonstrable benefit, as in the case of housing estate regeneration.

A range of unit sizes of affordable housing should be provided, having regard to local circumstances and local housing priorities reflected in Lambeth Council’s Housing Strategy and also the Lambeth Tenancy Strategy 2012, or any subsequent updates. Applicants should actively consult Lambeth Housing at an early stage, on the range, mix, tenure type, unit size, service charges, preferred Lambeth Housing partner (Registered Providers), and assumptions regarding public funding availability and affordable housing finance modelling.

In addition, applicants should adhere to the Lambeth Tenancy Strategy 2012 (or subsequent updates), which sets out the borough’s position on Affordable Rent:

n Rents should be kept as low as possible to reduce welfare dependency and employment disincentives. Overall the Council expects to see a blended rate not exceeding 65% of market value

n Rents should not exceed the Local Housing Allowance.

n To see the growth in Lambeth’s housing supply and accept that Affordable Rent is now a key part of funding new affordable housing

n Registered Providers should only apply Affordable Rent to 1 and 2 bed properties (including re-lets), with larger properties to be provided at target rents

n Affordable Rents should not be used on estates which have been transferred from Lambeth Council and are still subject to transfer agreements

5A Affordable housing 27

Viability assessments

Where the applicant considers that their scheme cannot meet the relevant affordable housing targets, they will be required to submit appropriate financial information on the proposed scheme’s viability. This financial viability information will be subject to scrutiny by a Council appointed independent valuer, to test assumptions, and provide the Council with advice on the levels of affordable housing that can be achieved. This may follow the standard financial appraisal “Three Dragon’s” Model, or other alternative models where appropriate.

A developer will normally be required to test alternative scenarios determined as appropriate by the Council, normally including a fully policy complaint scheme in terms of affordable housing, and/or other policy considerations as necessary. Alternative scenarios may be requested that have the potential of achieving either a positive or neutral residual value, using agreed inputs on commercial or residential elements of the proposed development. Such additional scenarios will be agreed with the Council.

Financial appraisals and the independent assessment will include the level of CIL and other planning obligations as identified by the Council, in their workings.

The costs of financial appraisals and independent assessment will be met by the developer.

On-site provision, wherever possible

Applicants seeking to provide off site provision will need to identify their own alternative sites for the delivery of affordable housing and demonstrate why the original site is unacceptable for the provision of affordable housing. They will also need to show how the development of alternative sites meets that sites’ requirement for affordable units.

Overall applicants would need to demonstrate how off-site provision provides significantly better value in terms of the number and type of affordable housing provided. Applicants will also be required to demonstrate how they can meet the policy requirement for affordable housing across both sites, taking account of the fact that where off-site housing is allowed, the donor site will be capable of providing more market housing units and therefore the affordable requirement will rise accordingly.

Payments in lieu will only be considered in exceptional circumstances. Only where developers have fully demonstrated that they have explored the options of on site and off site provision potential linked to their scheme, to the Council’s satisfaction, and/or in the case of a financial requirement arising out of a review or re-appraisal of the development.

Review mechanisms

Where a scheme does not comply with the Council’s policy requirements in full, a review mechanism (or re-appraisal of scheme viability) will be incorporated in the Section 106 agreement to ensure that any uplift in development value that occurs between the granting of planning permission and the completion of the development is shared with the Council.

The circumstances where such a review may apply include:

n Where there is a delay in starting on site

n Where a large site is to be built out in phases

n On submission of reserved matters applications

n At the end of to a development, which after consideration of and accounting for developers risk, it is appropriate for the Council to take a commuted sum to support the delivery of affordable housing

In requiring a review mechanism the Council will act in accordance with advice in the London Plan Housing Supplementary Planning Guidance (Nov 2012):

n Identify the points(s) at which a re-appraisal review should be carried out

n Establish on a case by case basis, which planning contributions will be considered

n Set out the expectation for additional homes on- or off site, or for receiving a financial contribution

In all circumstances, the review mechanism will ensure that the developer achieves a reasonable profit level, reflective of market risk.

5A Affordable housing 29

Additional relevant policies

Core Strategy Policy S2 Housing (c)

Partially saved UDP Policy 16 Affordable Housing


30 Planning in Lambeth August 2009 Planning in Lambeth August 2009 31Draft revised S106 planning obligations30 31 5B Securing employment and economic activity arising from development

Lambeth has one of the largest rates of unemployed people of any London borough, a trend that has been consistent for generations. In terms of local employment, the borough’s job density is around half of the inner London average and also lower than the London as a whole. High levels of unemployment, low incomes, and deprivation exist in Lambeth due, in part, to problems of local labour accessing job opportunities. In addition there are low levels of business growth in comparison to other central London boroughs. Linked to this, Lambeth is 16th out of 33 London Borough’s in terms of the quantum of office development delivered in the last decade.

However, with over 30,000 jobs potentially being created in the next 20 years and a further 80,000 new jobs outside the borough within easy reach of residents; it is critical that the Council invests in developing the infrastructure to support access to employment so that all residents have the opportunity to benefit from growth.

Securing employment and economic activity arising from development

5B

Improving access to employment opportunities

Maximising employment and employability amongst Lambeth’s population is another key priority for planning obligations. Promoting key training and skills opportunities and expanding and coordinating job brokerage, through Lambeth Working are both critical to this. This will include maximising the number of local people accessing new jobs created inside and outside the borough; ensuring that young people are ready for new opportunities in the evolving London economy; and providing a mechanism for employers to access local skilled labour

Supporting new and existing businesses to develop and grow

With lack of affordable premises and grow on space cited as a barrier to growth, it will also be important to use planning obligations to maintain and enhance the supply of appropriate employment space, supporting new inward investment opportunities and growth in the existing business base, This should include mechanisms to support Small and Medium Size (SME) enterprises to locate, stay and grow within Lambeth. The use of Lambeth based companies and suppliers during and after the construction of major schemes will also be encouraged.

Application

This applies to:

n All new residential developments providing 10 residential units or more.

n All major commercial developments, defined as the provision of a building, or buildings, where the floorspace to be created by the development is 1,000 sq m or more, or developments carried out on a site with an area of 1 hectare or more.

The Council will seek to secure a minimum of 20% of jobs for local residents, created by the construction of new qualifying development. It is expected that the developer will work with the Council, or its nominated agent, to achieve this target.

Developments that meet the threshold criteria will be expected to comply with planning obligations relating to:

1 An Employment and Skills PlanThe developer will need to produce an employment and skills plan outlining the approach they will take to delivering target employment, apprenticeship outcomes and engagement with schools and education providers.

2 Notification of vacanciesArrangement should be put in place for the notification of job vacancies, arising from construction, to the Council or any other agency appointed by the Council.

3 Trainee/apprenticeship placementsTo offer as a minimum, an average of one work based training opportunity/apprenticeship for every ten construction workers over the life time of a construction contract. These work-based placements will be to candidates nominated by the Council (or another agency as agreed by the Council) who are seeking recognised Level 2 or above NVQ qualifications, The Council will also consider a development which uses the Client Based Approach model from The Construction Industry Training Board (CITB), which provides a series of KPI’s agreed with the industry.

33 5B Securing employment and economic activity arising from development

4 Financial contribution to support coordination, identification and preparation of traineesThe Council will seek a financial contribution to the recruitment, initial training and ongoing skills development and sustained employment for local construction trainees,

5 Accredited trainingTraining opportunities must follow an accredited framework, to provide trainees with the right level of skills to enter and sustain employment within the construction sector. Generally a minimum of NVQ Level 2 (e.g. CITB Construction Skills Modern Apprenticeship) for trainees will be sought, which will require the developer (either directly or via the supply chain) to employ trainees and support day release arrangements until attainment of their qualification.

6 Where a scheme is of strategic importance, or is a very large development, the Council may require a financial contribution and/or seek arrangements with the developer/contractors to provide for the following:

n A single point of contact (a Workplace Co-ordinator where appropriate) to manage demand and to provide regular skills forecasting updates

n On site resources – recruitment centre and or employment broker

n Engagement with the Councils appointed brokerage service

n Jobs Fairs

n New training facilities and related infrastructure

n Apprenticeships

n Education Programmes

5B.1 Construction phase – skills, training and employment

Standard Charge Formula1

It is expected that a minimum of one construction nominee trainee/apprentice placement per ten construction workers employed on scheme during building of the scheme will be provided. A standard charge for training will be made of £2,500 per £1 million of capital construction costs. The Council is willing to consider developments that use the CITB Client Based Approach when defining apprenticeship/trainee numbers and other KPI’s outlined in the approach.

The Council is also willing to negotiate a different rate on larger construction schemes defined as £30 million in construction contract value.

Core Strategy Policy S3 Economic Development (g) Partially saved UDP Policy 21 Location and Loss of Offices London Plan Policy 4.12 Improving Opportunities For All


Draft revised S106 planning obligations32

1Building Partnerships financial model Jan 2007.

Application

This applies to all major commercial developments, defined as the provision of a building, or buildings, where the floorspace to be created by the development is 1,000 sq m or more, or developments carried out on a site with an area of 1 hectare or more. The Council will seek to secure a minimum of 20% of jobs for local residents, created by end-user phases of new development above the set threshold. It is expected that the developer will work with the Council or its nominated agent to achieve this target.

Developments that meet the threshold criteria will be expected to comply with planning obligations relating to:1 Developments will be expected to make financial contributions toward the on-going running costs of the Councils chosen employment brokerage service. The contribution will be applied in accordance with priorities set by the Council.

2 The developer will need to produce an employment and skills plan outlining the approach they will take to delivering target employment, apprenticeship outcomes and engagement with schools and education providers.

3 The Council has an expectation that the developer will introduce the Council, or its nominated agent, to end use tenants in order to support accessing new employment related opportunities relating to the development.


4 For development schemes that have a significant impact in creating new long-term employment opportunities, the Council will seek agreements to enable access to employment, training opportunities, apprenticeships and local business growth arising from the development. The Council will also seek financial contributions to help support those sections of the Lambeth workforce that are furthest from the labour market, or have no registered qualifications, by providing training and support to enable access to newly created employment opportunities arising from development.

5 In addition, where there is loss of employment floorspace, the Council will seek to promote new opportunities for employment either through direct recruitment arrangements and/or financial contributions towards employment and training schemes.

6 Where a scheme is of strategic importance, or is a very large development the Council may require a financial contribution and/or seek arrangements with the developer/contractors to provide for the following:

n On site resources – recruitment centre and or employment broker

n Engagement with the council’s appointed brokerage service

n Jobs Fairs

n New training facilities and related infrastructure

n Defined Apprenticeship plan

n End use employment opportunities

5B.2 General and end-user phase – skills, training and employment


Financial contribution to enable local people to access employment in a new B1 scheme

This will be based on an assumption of employment yield from a development. A worked example for B1 office space is set out below:

n B1 (net) new floor area/ 12 sq m per employee (based on standard general office job density)

n 32% of Lambeth residents expected to be employed as part of total workforce

n 12.3% of Lambeth residents with qualifications equivalent to or less than NVQ1 requiring training and /or support.

n £5,230 average cost for Lambeth unemployed resident in terms of support and training to obtain access to a skilled job.

The Council is willing to negotiate a different rate on larger construction schemes defined as £30 million in construction contract value.

Compensation for loss of employment floorspace

n (Net) loss of employment floorspace / 16 sq m average space per worker (based on office average)

n 32% on average Lambeth residents in borough workforce

n £5,230 average cost for Lambeth unemployed resident in terms of support and training to obtain access to a skilled job.

Core Strategy Policy S3(g) Economic Development

Saved UDP Policy 21 Location and Loss of Offices and saved UDP Policy 23 - Protection and Location of other Employment Uses

London Plan Policy 4.12 Improving Opportunities For All




Core Strategy Policy S3(g) Economic Development

Saved UDP Policy 21 Location and Loss of Offices and saved UDP Policy 23 - Protection and Location of other Employment Uses

London Plan Policy 4.12 Improving Opportunities For All

2 B1 floorspace: Workforce per sq m of B1 general office space from Homes & Communities Agency Employment Densities Guide 2nd Edition (2010)

Lambeth resident workforce: 32% of resident workforce employed is based on number of Lambeth jobs occupied by Lambeth residents – 2001 Census (note: 2011 Census data on this not yet released).

Lambeth resident qualification: 12.3% of Lambeth Residents with qualifications equivalent to or below an NVQ1 & requiring training and/or support to enter the Labour market. (Jan 2012 - Dec 2012) source Nomis/ONS.

Average Cost for training unemployed/redundant worker : The Skills Funding Agency has set budget for national relates per standard learner number (SLN) 2011/12 £5,230.00 Source Skills Funding Agency

Application

This applies to all major commercial developments, defined as the provision of a building or buildings where the floorspace to be created by the development is 1,000 sq m or more, or developments carried out on a site with an area of 1 hectare or more.

Schemes to support small business start up units or community-based workshops may be secured through a planning obligation.

To meet the demand for small and medium sized employment space planning obligations will be used to cover business advice and guidance, marketing, lease arrangements and shared management facilities for micro businesses, sole traders for small business start up or community workshop space. Where appropriate this should involve established business space providers and managers.


5B.3 Securing employment premises

Core Strategy Policy S3 Economic Development (g)

Saved UDP Policy 23 Protection and Location of Other Employment Use

The London Plan Policy 4.12 Improving Opportunities for All


Application

This applies to:

nAll new residential developments providing 10 residential units or more.

nAll major commercial developments, defined as the provision of a building, or buildings, where the floorspace to be created by the development is 1,000 sq m or more, or developments carried out on a site with an area of 1 hectare or more.

The council will work with developers and their contractors to achieve the procurement of goods and services from companies and organisations based in Lambeth, and seek to secure a 20% minimum of the total value of all contracts locally.

Planning obligations will be used to cover interventions to ensure small and medium sized local enterprises have access to tender opportunities for the procurement of goods and services, generated by the development, both during and after construction. This should have regard to the Council’s Local Procurement Code of Practice and competition rules. This may include:

1 Identification of subcontracts and materials supply opportunities within their procurement schedule, where local companies can be added to a tender list

2 Participation, and in some instances, providing, financial resources to cover the cost of tendering workshops and supply chain events for local Small Medium Enterprises

3 A clear outline of how local suppliers and businesses will be engaged/supported to access local supply chain opportunities

4 Engagement with local businesses to encourage them to tender for the provision of goods and services during the construction and at end use stage of development

5 Co-operation with regular monitoring of local procurement results

5B.4 Supporting local enterprise



The London Plan Policy 4.12 Improving Opportunities for All and 4.64




5C

Providing education, health and community facilities is a fundamental part of the borough’s growth agenda and goes hand in hand with spreading benefits to all the borough’s citizens. These facilities will be a critical part of Lambeth’s future success, both in terms of meeting the needs of the growing population and helping to attract new people to the area.

In most cases the funding of community facilities to meet the needs of new development will be addressed through the standard CIL charge. This will include expenditure on general construction costs for schools, health, libraries, sport and leisure and other community facilities. However, in some cases Section 106 planning obligations may be required to secure the provision of land for, or the construction of, one or more community facility, which relates directly to a development, or cluster of developments. Once produced, local infrastructure plans will help to guide the specific infrastructure requirements at the local level.

Community facilities

Application

Planning obligations will be sought if both of the following criteria are met:

n Where an assessment of current and future community facilities capacity shows that a major residential development scheme, or cluster of neighbouring developments (no more than five separate development), establishes a site-specific need for additional community facilities

n Where land, or the provision of a new facility, is required within, or nearby, the proposed development site

Further, there is an expectation that development schemes that necessitate the removal or demolition of existing community facilities should provide appropriate replacements for these facilities.

The Council will use available data from the GLA, and other appropriate public sector research, to calculate residents and child yield expected to result from new residential development. For non self-contained development (e.g. student accommodation, nursing homes) an assumption of one person per bedroom should be used.

Subject to an assessment of the existing capacity of community facilities, a requirement to secure the provision of land may be triggered on the following basis:

n 200 children of primary school and nursery school age = provision of 1 additional primary school (including nursery provision) this would be 1FE

n 400 children of secondary school age = provision of 1 additional secondary school.

n Above 1,000 residents = consideration of on site provision of health or other community facilities

41 5C Community facilities

Provision will be assessed on a pro rata basis, e.g. a development generating 1,500 residents may be required to provide land compared to that of a 1,000 residents.

Where required, the provision of land for community facilities will need to be located locally to the residential population created by the development. The preference is that this is on-site wherever possible.

Section 106 planning obligations may also be used to specify when and how land should be realised for the purpose of construction of community facilities.

Where there is a cluster of developments and land ownership that generates the need to secure the provision of land, through Section 106, for the purposes of community facilities, this will be applied to the land owner(s) with the most appropriate site, as deemed by the Council. As such, financial contributions may be required from the other landowners in the cluster to offset the opportunity cost of the owner(s) of land secured for the provision of the community facility.

Section 106 planning obligations may also be used to require the developer to provide the community facilities as part of the development.

5C Community facilities

Core Strategy Policy S1 – delivering the Vision and Objectives (f)

Saved UDP Policy 26 Community Facilities (d) Deficiencies in Community Facilities




5D

A modern and efficient transport network is essential to growth in Lambeth. To contribute to the growth agenda, new development must be delivered in parallel with improvements to transport and movement in the borough, attracting new employers and residents, as well as providing the existing population with improved access to employment opportunities within the borough and further afield.

New development will place increased pressure on a system, which is already at, or over, capacity in many places across the borough. It is important that alternative and sustainable means of transport are promoted, wherever possible, in order to reduce the impact of increased levels of residential and workforce population. Such an approach will help to reduce congestion, carbon emissions and advance healthier lifestyles. Strategic transport related infrastructure projects will be met by the

CIL charge. However, where schemes, or clusters of schemes, have additional site specific impacts, these will be addressed through Section 106 planning obligations.

From 1 April 2012, the Mayor of London’s CIL came into operation. The purpose of this levy is to contribute to the funding package for the construction of the Crossrail line, which will increase capacity across the tube network by around 10%, benefiting all of London. This will be charged in addition to the Lambeth CIL on all qualifying development.

Transport Application

This applies to new development surrounding, or linked to, public transport interchanges:

nProviding 10 residential units or more

nAll major commercial developments, defined as the provision of a building, or buildings, where the floorspace to be created by the development is 1,000 sq m or more, or developments carried out on a site with an area of 1 hectare or more

Funding for identified public transport infrastructure capacity improvements, required to support new development will normally be funded as part of the CIL. However, new development surrounding, or linked to, public transport interchanges, will need to address how it relates to the specific transport functions of the location. These may include safeguarding land, improvements to accessibility and the integration of different public transport modes, including cycling and pedestrian links to promote sustainable transport, all of which may be secured by planning and/or highway legal agreements.

Public transport planning obligations may be sought, either as on-site works, or in the form of off-site financial contributions, dependent on who will undertake the work. The Council’s Transport section/Transport for London, or Network Rail, will advise on the requirements for individual applications, which may cover the following range of improvements:

nSitting of bus stops

nAccess and other improvements to rail and underground stations

nFacilities to assist interchange between modes

nAssociated street furniture

nAssociated carriageway and pavement measures

nAssociated pedestrian and cycle links

nCycle parking

nMotor cycle parking

nCar club provision

5D.1 Public transport – interchange connections

Core Strategy Policy S4 (d) Saved UDP Policy 9, includes Table 5 - Measures which might be secured to make development acceptable Partially saved UDP Policy 12 Strategic Hubs and Transport Development Areas


43 5D Transport

45 5D Transport

Application

This will depend on the nature of the proposals and the extent of the need for highway and/or traffic management works required. This should be identified in the applicant’s Transport Assessment. The Council’s Transport section and/or Transport for London will advise on the requirements for individual applications.

Where development results in an adverse impact on the highway network, measures may be required to alter or improve the highway network, which may not be met by the CIL charge.

Contributions from the developer for a range of traffic and highway measures may be required as the result of individual schemes. Where a number of schemes have a cumulative effect on the highway network and/or particular junctions, financial contributions may be pooled (for up to five contributions). Mitigating measures may include traffic calming/management and road safety improvements, along with other essential highway improvements.

5D.2 Highway improvements and traffic management






Application

On street parking controls, waiting restrictions, parking permits, car free housing and provision of on street cycle parking, where required and appropriate, will be promoted to address the impact of individual developments. This will depend on the nature of the proposal, existing parking conditions and the likely impact of the development. It applies to all housing and commercial development.

The increased parking demand from development will be addressed through a range of measures:

1 Provision of identified small scale parking restraint measures to manage parking capacity, or highway safety and/or the new creation of new parking bays to accommodate the parking capacity required by the development.

2 Contributions towards Controlled Parking Zones (CPZs) arising from the likely impact of development towards the implementation of a new, or the extension of an existing, Controlled Parking Zone. The contribution will be based on the estimated cost of the works, including costs related to any consultation exercises.

3 Where permit capping (including Car Free Development) is required, placing restrictions on the entitlement of occupants of a development to residents’ and business and other parking permits, the developer is required to advise the occupants of these development restrictions. Both as part of the marketing of the scheme and by including this in their lease.

4 Provision of on-street secure cycle parking units for residential development schemes, where full provision cannot be met on site.

5 Provision of visitor parking for commercial development, where such parking cannot be provided on site, or would be more convenient to users.

5D.3 Parking controls and cycle parking

Core Strategy Policy S4 Transport (f) Saved UDP Policy 9 Transport Impact Partially saved UDP Policy 14 Parking and Traffic Restraint.



Application

This applies to:

nAll new residential developments providing 10 residential units or more and depending on the nature of the proposal.

nFurthermore, non-residential major developments, defined as the provision of a building, or buildings, where the floorspace to be created by the development is 1,000 sq. m or more, or developments carried out on a site with an area of 1 hectare or more, will also be required to provide for access to or provision of car clubs. Where a car club facility is to be provided, the developer will be required to either:

1 Enter into a contract with an accredited car club provider to provide:

nAn agreed number of car club parking bays within the site to be maintained for the duration of the development

nA level of free or subsidised membership as advised by the Council’s Transport section, to relate to properties, rather than individuals, unless otherwise required by the provider

nAccess for the wider community to on site car club bays, unless otherwise agreed by the provider

nA commitment to securing an on-street parking bay, after an agreed period, in accordance with (2) below, if the on-site car club provision is not sustainable without wider community use

2 Pay for car club bays to be provided on-street in the vicinity of the development including:

nPayment of the Council’s costs in providing the associated parking bays, including all costs associated with Traffic Orders

nA level of free or subsidised membership, or as advised by the Council’s Transport section, to relate to properties rather than individuals unless otherwise required by the provider.

5D.4 Car clubs






Application

All developments will be assessed against the standards set out in Transport for London’s current Travel Plan guidance to determine if a travel plan is required. Generally, travel plans will be required for large traffic generators, including commercial developments, new and expanded schools, other community facilities and major residential developments.

If a travel plan is required, a financial contribution towards monitoring costs will also be required.

The travel plan is required to set objectives to reduce the adverse transport impacts and include measures to implement the plan. Travel Plans are on-going, working documents, designed to set out a strategy on how car usage will be discouraged and reduced, whilst other modes of travel, including walking, cycling and public transport, are promoted and increased.

A draft travel plan should be submitted with a planning application indicating how the reduction of car use is to be addressed and monitored.

The Council will monitor the effectiveness of all development related travel plans and most will require annual monitoring reports to be submitted to the Council. Developers of commercial and residential developments will be required to cover the costs of such reviews..

5D.3 Travel plans

Core Strategy Policy S4, Transport. Saved UDP Policy 9, Transport Impact



5E

As Lambeth’s population continues to grow it is important to ensure that the spaces and places between buildings function well and are attractive and enjoyable. New development has a key role in making sure it contributes to this continued improvement in the public realm and in doing so, supports economic growth in the borough by attracting new investment, employers and residents to the area.

Open space is a key resource in an urban area such as Lambeth, providing vital recreation, relaxation and wellbeing benefits, as well as a focal point for community interaction. New development will create increased demand on the use of open space, particularly in areas that already have identified deficiencies. Investment in open space, including parks, green areas, areas for outdoor sports, playing fields, and areas of nature conservation, will generally be met through CIL receipts, as this provides the most appropriate and flexible source for income. However, for major schemes,

site-specific Section 106 obligations to meet need may be required.

Lambeth also has a wealth of heritage assets, which include approximately 2,500 listed buildings and 62 conservation areas. In addition, there are 17 Archaeological Priority Zones and 8 historic Registered Parks and Gardens. There are also protected strategic views in the north of the borough, to St Pauls Cathedral and the Palace of Westminster (a world heritage site). The Council will safeguard and promote improvements to these assets and protect strategic views.

Public realm

49 5E Public realm

Application

All development schemes that have a significant impact on the public realm will be assessed for appropriate public realm improvements in the vicinity of the scheme, or the adjoining area.

Where necessary, planning obligations will be sought to public realm works on or immediately adjacent to a development site. This will exclude works identified in projects and programmes to be paid for using CIL.

Public realm works will either be undertaken by the developer, or made through financial contributions to the Council, who will organise or undertake the works directly. Contributions could compliment and/or contribute towards programmes for wider based improvements and may include:nNew or improved footways and/or hard or soft landscaping improvementsnReplacing paving or landscape material on existing public realm including carriageway and footwaysnImprovements to the Thames PathnImprovement of pedestrian and cycle links to local facilities and public transportnTraffic management measures and initiativesnStreet lightingnTree planting and biodiversity improvements nCommunity safety initiativesnAppropriate new street furniture and signagenCCTV or other community safety measuresnRestoration and enhancement works to buildings linked to development within conservation areas or with listed status.nResearch into the historic environment of a given area and interpretative signage to convey the areas historynRemoval of street clutter

Appropriate streetscape guidance on improvements will be referred to where it has been developed for a local area, as in the case in Waterloo.

5E.1 Streetscape improvements

Saved UDP Policy 39 Streetscape, Landscape and Public Realm Design


51 5E Public realmDraft revised S106 planning obligations50

Application

This will depend on the nature of the development proposal. However, it may be relevant to any listed building, development in a conservation area, or an Archaeological Priority Area.

Where appropriate the following may be included as S106 planning obligations in relation to heritage assets:

nRepair, restoration or maintenance of heritage assets

nProduction and implementation of conservation management plans

nIncreased public access and public open days

nProvision of signage, interpretation panels and accessible information

nDissemination of historic environment information

nRecording of archaeological remains and its findings published appropriately and placed on the Greater London Historic Environment Record (GLHER).

nMeasures for the preservation in situ of archaeological assets, or in certain circumstances where it is deemed necessary to excavate

nAppropriate retrofitting measures for historic buildings for energy efficiency.

5E.2 Historic Environment

Core Strategy Policy S9 Quality of the Built Environment


Application

The management of visitors to major attractions, or major new developments with high footfall, incurs costs to the Council and other public sector providers, along with potential impacts on local communities. Planning obligations will be sought if a destination meets one, or more, of the following criteria:

nHas a large number of visitors per annum, or contributes to the cumulative build up of visitors to an area (approximately 100,000 per annum plus)

nHas a peak activity that requires additional services, including safety or management measures to be put in place, and/or

nAs a result of operations, require public sector bodies to devote additional resources

The requirement to manage or address the impact of large crowds of visitors could include:

nGood planning, design and management of pedestrian movement through the scheme and through the wider area

nAddressing public order concerns in relation to security and/or illegal trading or other activities relating to the attraction

nManagement of services or amenity facilities such as public toilets.

nProvision of facilities for litter, rubbish or waste

nChanges or adaptions to the physical or built environment sufficient to deal with increased numbers of visitors, reduce crime, disorder or nuisance

nAdditional signage

Direct provision by the developer, the end user, or through financial contributions for capital and revenue costs will be sought, where appropriate, to secure these facilities or services.

5E.3 Visitor management

Core Strategy Policy S9 Quality of the Built Environment




The Council will look to base the visitor management cost on an annual sum payment per year based on impact in relation to 1% of turnover, or another minimum sum, as agreed.

3Based on London Eye S106

Agreement, Nov 2003

53 5E Public realm

Application

For development that creates a substantial additional local demand for open space and which cannot be met by existing provision, adequate levels of open space should be designed into the scheme. This should either be as part of the development, or on land in the vicinity of the scheme.

As such, where appropriate Section 106 planning obligations will be sought to provide appropriate land to meet site-specific open space requirements and make the scheme possible in planning terms.

5E.5 New open space

Core Strategy Policy S1 (d) Delivering the Vision and Objectives

Core Strategy Policy S5 Open Space

Core Strategy Policy 10

Saved UDP Policy 50 Open Space and Sports Facilities supports the protection of open space and the provision of new spaces



Application

This applies to development capable of providing 10 residential units or more, which provides family housing.

The provision of adequate play space and facilities for younger children (up to 11 years), is a direct requirement of development and will be secured through planning obligations, as appropriate, on or near the development site. Provision for older children and younger people (12+), more capable or likely to travel further afield may be met by CIL contributions.

A calculation of the estimated number of children (child yield) from new developments will be used to inform the requirement for new children play provision. New residential developments, more than 100 metres away (for under 5 years), or 400 metres (for 5- 11 years) from an existing children’s play space, will be required to provide a play facility.

Generally, preference will be for on-site provision, including for larger residential developments, consideration of a multifunctional space. However, where this is not feasible an off-site financial contribution will be sought towards new provision in the vicinity of the development.


Where off-site provision is necessary, the following calculation will be applied:

nChild yield calculated in accordance with bedroom size and tenure variations.

nNumber of children generated X 10 sq m of play = play space requirement.

nAverage Cost per sq m (£99 sq m) x play space requirement = financial contribution.

5E.6 Children’s play space

Core Strategy Policy S1 (d) Delivering the Vision and Objectives

Saved UDP Policy 26 (d) -Deficiencies in Community Facilities

Saved UDP Policy 50 Open Space and Sports Facilities (i) supports the provision Children’s Play Facilities


4Shaping neighbourhoods Play and Informal Recreation mayor of London Supplementary Planning Guidance. September 2012Cost per sq m assumptions provided by Lambeth Environment, Culture & Community Safety Development Unit 2007

55 5E Public realm


5F

Ensuring new development comes forward in an environmentally sustainable manner is critical to the long-term growth of the wider global economy, which itself has a direct effect on both London and Lambeth’s economic opportunities.

The Stern Review (2006) provided an assessment of the global economic impacts of climate change, including:

n Extreme weather could reduce global gross domestic product (GDP) by up to 1%

nA two to three degrees Celsius rise in temperatures could reduce global economic output by 3%

nIf temperatures rise by five degrees Celsius, up to 10% of global output could be lost.

nIn the worst case scenario global consumption per head would fall 20%

While this is a global issue, the impacts will be felt locally and in many areas the solutions can also be found at the neighbourhood or borough level. New development today should not stymie growth in the future. As such, there is a need to be smarter about how development is planned and designed, so growth can take place, while maintaining natural resources.

Furthermore, the UK Government has set out an ambitious plan for all new homes to be zero carbon from 2016 and new development coming forward should continue to strive towards this goal.

As such, all development proposals in Lambeth should be supported by a Sustainability Assessment and built to the highest standards of sustainable design, construction and operation. Where required, planning obligations will be used to achieve this goal.

Sustainable development Application

All major development is required to achieve a reduction in carbon dioxide emissions in line with London Plan targets through energy efficient design, decentralised heat, cooling and power systems, and on-site renewable energy generation. All other development should achieve the maximum feasible reduction in carbon dioxide emissions through these measures. The requirement to submit a Sustainability Assessment applies to all development proposals.Applications are required to demonstrate how sustainable design and construction principles are incorporated into new development and how specific targets on environmental performance, through nationally recognised sustainable building standards, will be met.

Section 106 planning obligations will be used, as appropriate, to secure the proper installation, maintenance and responsibility for sustainable measures, as well as renewable and low carbon energy solutions. The Council may also use Section 106 planning obligations to secure compliance with applicable Code of Sustainable Homes and BREEAM standards (or any future replacement standards).Developers will be expected to provide infrastructure for decentralised energy and district heating or cooling networks. Where appropriate, S106 agreements will be used to secure connection to existing or planned decentralised energy networks or the installation of CHP/CCHP on a site wide basis. Where this is not currently practical, developments will be expected to be ‘future proofed’ to facilitate connection to a future decentralised energy network and/or a financial contribution may be sought towards the development of that network.

5F.1 Sustainable development and reduction in carbon emissions

57 5F Sustainable development and reduction in carbon emissions

59 5F Sustainable development and reduction in carbon emissionsDraft revised S106 planning obligations58

To ensure that expectations and actual energy performance are aligned, planning obligations may be used to secure the installation of appropriate equipment for post construction monitoring of renewable and low carbon energy measures.

Where the required reduction from on-site renewable energy is not feasible within major new developments, off-site provision may be required.

Core Strategy Policy S7 (a) –(e) Sustainable design and Construction

Saved UDP Policy 35 Sustainable Design and Construction

Lambeth UDP Sustainable Design and Construction SPD (2008)

The London Plan, Chapter 5, London’s Response to Climate Change, sets out a comprehensive range of policies to underpin this response. Policy 5.1, Climate Change Mitigation, sets out the Mayors target to achieve an overall reduction in London’s carbon dioxide emissions of 60% (below the 1990 levels) by 2025. It is expected that London Boroughs contribute to meeting this strategic reduction target.

Policies 5.2 – 5-9 in the London Plan require developments to make the fullest contribution to minimising carbon dioxide emissions including through adopting sustainable design and construction techniques, retrofitting existing buildings, prioritising decentralised energy, the inclusion of on site renewable energy generation and reducing reliance on energy intensive cooling systems.


Application

Several areas in Lambeth have been identified as at the highest risk of flooding, namely Waterloo, Vauxhall and adjacent to the River Graveney. It is considered that all measures to address flooding will be site-specific mitigation and therefore will be dealt with using Section 106 planning obligations and not CIL.

It must be demonstrated that any new development will reduce fluvial, tidal and surface water flood risk and manage residual risks through appropriate flood risk measures. Measures to mitigate flooding from ground water and sewers should also be included. On larger sites the measures such as Sustainable Urban Drainage Systems (SUDS) may be required.

The construction and ongoing maintenance costs of SUDS should be fully funded by the developer.

5F.3 Travel plans

Policy S6 – Flood Risk



5G

Town centres play a key role in the growth agenda. They are a focus for economic activity, exchange and a range of service provision. They also act as a front door to the borough in terms of inward investment and visitors.

Lambeth has major Opportunity Areas at Vauxhall Nine Elms and Waterloo, as well major town centre regeneration sites, including at Brixton. Allied to this, the borough has a number of Business Improvement Districts (BIDs), who are driving forward change and economic growth at key employment and retail locations. Other town and district centres also have development capacity. It is important that growth from new development creates opportunities to maximise the wider economic benefits of increased population and/or activity in the area, to advance the economic and social vitality, viability and character of Lambeth’s town centres and the communities they serve.

The Council will use planning obligations to support this, or mitigate against harm, by working through existing or new structures and organisations, such as BIDs, wherever practical.

Support to town centres

61 5G Support to town centres

Application

This applies to:

nAll new residential developments providing 10 residential units or more.

nAll major commercial developments, defined as the provision of a building, or buildings, where the floorspace to be created by the development is 1,000 sq m or more, or developments carried out on a site with an area of 1 hectare or more.

This will be applied where development may have an impact on existing businesses or the function of a town centre or district centre, where this may be addressed by an appropriate planning obligations contribution.

Financial contribution from planning obligations could be used to cover a range of activities, including promotional, marketing, and co-ordinating activity. This will be though Business Improvement Districts, where they exist, such as Waterloo Quarter Business Alliance, Vauxhall One and In Streatham, along with new BIDs as they emerge across the borough.

Where new development relating to a town or district centre, requires planning obligations that are covered elsewhere in the Section 106 SPD, where relevant, the local BID’s strategy and action plan will be used to inform the agreement.

5G.1 Travel plans

Core Strategy Policy S1 – Delivering the Vision and Objectives, Core Strategy

Policy S3 - Economic Development (d) Policy S10 Planning Obligations.

The Core Strategy policies for Places and Neighbourhoods reflect the aspirations and approach for nine different parts of the borough:

nPolicy PN1 Waterloo

nPolicy PN2 Vauxhall

nPolicy PN3 Brixton

nPolicy PN4 Streatham

nPolicy PN5 Clapham

nPolicy PN6 Stockwell

nPolicy PN7 Oval

nPolicy PN8 West Norwood / Tulse Hill

nPolicy PN9 Herne Hill

nPolicy PN10 Local Centres


Procedure and management

6

64

Section 106 planning obligation financial payments

Payment of Section 106 financial contributions are required to be paid to the Council as the Local Planning Authority by law. Payment can be made by electronic transfer (preferable), and/or by cheque. Payment will normally first fall due on implementation of planning permission or subsequent trigger or phased payments as agreed as part of the Section 106 Agreement.

Section 106 implementation programme management

Lambeth Council is responsible for the receipt, monitoring and programme management of financial contributions and certain programmes arising, working across the Council and with external partner agencies to spend the financial contributions received.

Once received, the money is held in a ring fenced corporate Section 106 account, with a unique code against each individual obligation. Interest on banked money will be accrued.

On receipt of financial contributions, the database is updated and the relevant part of the Council, or other delivery agencies, likely to be involved in expenditure is informed. Relevant partner agencies are provided with regular information on receipt of money.

Non-financial planning obligations will be monitored via the Section 106 database. The discharge of planning obligations over time requires monitoring and the input from a number of Council departments. Some major “phased” developments schemes will require their own schedules to monitor planning obligations triggers and delivery.

Draft revised S106 planning obligations Procedure and management 65

Fixed Fee Approach

It is important that the Council covers the costs of the administration of Section 106 and CIL funds. The fee applied for Section 106 planning obligations is based on Lambeth Council’s cost recovery estimation & a comparison with CIL regulations, which provide for 5% administrative expenses.

nFor a legal agreement with a total financial contribution below £12,500, there will be a fixed charge of £500.

nFor a legal agreement with financial contributions over £12,500, there will be a fee of 5% on the total value of the financial contribution.

nFor an agreement with non financial obligations there will be a separate fixed fee of £500

If an agreement is exceptionally complicated (e.g. more than 10 items/heads of terms, variation on existing agreement), or difficult to monitor, it may be appropriate to request a contribution above the standard fee. The fee will depend on the extent of the obligations and the officer time involved in concluding, monitoring and implementing the agreements

The total value of the agreed planning obligation will exclude these costs, which are additional and will be added to the final cost.

The fee will be generally payable on the completion of the Section 106 legal agreement.

Appendix 1Policy background to Section 106 planning obligations SPD

National Policy Context The National Planning Policy Framework (NPPF) adopted in March 2012, states, that “Local Planning authorities should consider whether development could be made acceptable through the use of conditions or planning obligations”.

In accordance with the NPPF, CIL Regulation 122 states that planning obligations (applied in additional to the standard CIL charge) should only be sought where they meet the following tests:

nNecessary to make the development acceptable in planning terms

nDirectly related to the development, and

nFairly and reasonably related in scale and kind to the development.

The NPPF further advises that SPDs, such as the S106 planning obligation SPD, should only be used where they can help applicants make successful planning applications or aid infrastructure delivery and should not be used to add unnecessarily to the financial burdens of development.”

London Plan Context The London Plan (July 2011) contains various policies that set out and support boroughs’ requirements in seeking planning obligations. London Plan Policy 8.2 states that “Boroughs should set out a clear framework for negotiations on planning obligations in Development Plan Documents (DPDs) having regard to relevant legislation, central Government policy and guidance and local and strategic considerations to the effect that:

(a) it will be a material consideration whether a development makes an appropriate contribution or other provision (or some combination there of) towards meeting the requirements made necessary by, and related to, the proposed development;

(b) negotiations should seek a contribution towards the full cost of all such provision that is fairly and reasonably related to scale and kind to the proposed development and its impacts on a wider area; and


(c) boroughs must refer to planning obligations that would be sought in the relevant parts of DPDs (such as transport and housing policies).”

Lambeth Policy ContextLambeth Council’s planning policy framework is in a period of transition with the Lambeth Unitary Development Plan (UDP – 2007) in the process of being replaced by the Lambeth Local Development Framework (LDF), which will be retitled the Local Plan. The LDF Core Strategy was adopted in January 2011 and this replaced many but not all of the policies in the UDP. The remaining policies can be found in the “Unitary Development Plan Policies Saved Beyond 5 August 2010 and not superseded by Local Development Framework Core Strategy 2011”

The draft Lambeth Local Plan was consulted on in the first half of 2013. Once adopted the local plan will:

nIncorporate the Core Strategy and replace the save UDP policies

nRetain the spatial strategy, vision, and strategic objectives of the Core Strategy

Update, these as appropriate in light of new evidence, and the National Planning Policy Framework.

nContain more detailed development management policy and site allocation directionThe Local Plan is due to be adopted in early 2015, and following on from this the Section 106 planning obligations SPD will be further updated to align fully with this single Lambeth planning policy document.

In terms of the existing policies, The relevant umbrella planning policy dealing with requirements in the Core Strategy is:

nPolicy S10 – Planning ObligationsPlanning obligations will be sought to secure the provision of affordable housing (see Core Strategy Policy 2(c)).

Planning obligations will also be sought to mitigate the direct impact of development, secure its implementation, control phasing where necessary,and to secure and contribute to the delivery of infrastructure made necessary by the development. This may include contributions towards education, healthcare, libraries, sport, leisure, cultural and community facilities, policing resources, community safety in the public realm, streetscape, public art, maintenance and improvement of the borough’s heritage assets, parks and open spaces, play facilities, public transport, highways and traffic works, walking and cycling improvements, parking restrictions, car clubs, travel plans for people and goods, employment and training measures, employment premises, town centre management, utilities and carbon dioxide reduction, subject to the particular circumstances of the development in question and the nature and extent of impact and needs created.

The Council will support community based project banks in specific places and neighbourhoods. Projects will be brought forward as appropriate and relevant in mitigating the direct impact of development proposals.

The supporting text advises “that the detailed requirements for planning obligations will be set out in a Supplementary Planning Document and in site specific and area based Supplementary Planning Documents. The Supplementary Planning Document will provide details of contributions to be sought, the supporting evidence, justification and the mechanisms and processes whereby this will be assessed and determined. It will also take into account the Community Infrastructure Levy Regulations (April 2010)”.

Development Briefs and Area Based GuidanceWhere there is a need to provide more detailed guidance than contained in the Core Strategy and saved UDP policies, the Council prepares site specific development briefs or area based Supplementary Planning Documents (SPDs). In such cases planning obligations specific to the site or area will be identified, based on Core Strategy policies and saved UDP policies and this SPD.

Appendix 1 67

Appendix 2Glossary

Affordable housingSocial & affordable rented and intermediate housing

Rented Accommodation is intended for the poorest people and households, especially those on Housing Benefit, there are broadly two types of rented accommodation:

Social Rent – rents are set by formula (whereby local authority and RP rent levels are to merge and become the same over time), and tenancies can be let on a permanent basis

Affordable Rent – rents (including service charges) can be charged at up to 80% of market levels and tenancies can be let on a flexible basis - 2 years minimum for single person accommodation and 5 years for families. 80% of market rent will be unaffordable for many households, particularly larger families. Lambeth’s Tenancy Strategy seeks a blended approach whereby rent levels across a scheme average 65% of market rent, with 3 bed+ units at target rents (social rent) and 1 and 2 bed units at up to 80% but capped at LHA levels. The Council has been negotiating rent levels with RPs on this basis.

Intermediate Accommodation is provided for rent and sale to people whose incomes are higher than those requiring rented accommodation, but who cannot afford market prices. Qualifying prices and rents are set locally, however the London Plan advises that that households whose annual income is in the range £18,100 - £64,300 should be eligible for new intermediate homes. The Council expects developers to have regard to the mid-point of this range. For family homes (3+ bedrooms) the upper end of this range is extended to £77,200. The following models are currently available:

• Intermediate Rent – rent levels are set at between 70% and 80% of market value, but tenancies are not provided on a permanent basis

• Shared-Ownership - households buy a portion of the equity (25% is the minimum requirement for GLA funding), and pay rent for the remaining portion as well as service charges


• Equity Share – households purchase a proportion of the equity, but do not pay rent on the remainder

• Rent-to-Save – households pay sub-market rents in order to save for a deposit and costs of purchase so that they can buy the property on a Shared-Ownership basis

• Flexible Home Ownership – affordable accommodation is sold on the basis of Shared-Ownership, Equity Sharing, or Rent-to-Save products in accordance with the purchaser’s requirements

BiodiversityRefers to the variety of plants and animals and other living things in a particular area or region. It encompasses habitat diversity, species diversity and genetic diversity.

Business Improvement District A business-led mechanism for increasing investment within defined areas of a city such as a town centre, based on a supplementary rate levied on businesses within the defined area.

BREEAM A widely used development industry environmental assessment method and rating system for, for non residential buildings.

Carbon dioxide ( CO2) A naturally occurring gas that accounts for 0.04 per cent of the earth’s atmosphere. The burning of fossil fuels releases carbon dioxide fixed by plants many millions of years ago, and this has increased its concentration in the atmosphere by some 12 per cent over the past century. It contributes about 60 per cent of the potential global warming effect of man-made emissions of greenhouse gases.

Code for Sustainable Homes (CSH) is an environmental assessment method for rating and certifying the performance of new homes. It is a

Government owned national standard intended to encourage continuous improvement in sustainable home building.

Combined Heat and Power The combined production of electricity and usable heat is known as Combined Heat and Power (CHP). Steam or hot water, which would otherwise be rejected when electricity alone is produced, is used for space or process heating.

Community heating The distribution of steam or hot water through a network of pipes to heat a large area of commercial, industrial or domestic buildings or for industrial processes. The steam or hot water is supplied from a central source such as a heat-only boiler or a combined heat and power plant.

Community Infrastructure Levy (CIL) The Community Infrastructure Levy (CIL) is a new levy that local authorities can chose to charge on new development in their area. The money can be used to fund infrastructure that the council, local community and neighbourhoods need.

Core Strategy The main document of the Local Development, it is a development plan document containing the overall vision, objectives, strategy and key planning policies for the Borough.

Heritage Assets include listed buildings, locally listed buildings, listed sites, archaeological priority areas conservation areas, listed parks located within or adjoining the Borough

Heads of Terms the categories (terms) to be sought in the S106 Agreement

Infrastructure Term used to describe the facilities and services necessary for local people to live their everyday lives. Infrastructure can take many forms; it

can be defined in physical, green and social terms, and can range from strategic provision, such as a new road or school, to the creation of a local play-space.

Interested Party An interested party or person is someone who needs to be involved in directly complying with the provisions of the S106 Agreement

London Plan The Mayor of London’s statutory spatial development strategy for London.

London Plan Opportunity Area London’s principal opportunities for accommodating large scale development to provide substantial numbers of new employment and housing, each typically more than 5,000 jobs and/or 2,500 homes, with a mixed and intensive use of land and assisted by good public transport accessibility.

Low carbon development A development which achieves an annual reduction in net carbon emissions of 50% or more from energy use on site e.g. by reducing energy demand through passive design and energy efficient technology and supplying energy from renewable sources.

Major Development Is Development involving any one or more of the following:(a) the winning and working of minerals or the use of land for mineral-working deposits;(b) waste development;(c) the provision of dwelling-houses where - (i) the number of dwelling-houses to be provided is 10 or more; or (ii) the development is to be carried out on a site having an area of 0.5 hectares or more and it is not known whetherthe development falls within paragraph (c)(i);(d) the provision of a building or buildings where the floor space to be created by the development is 1,000 square metres or more; or(e) development carried out on a site having an area of 1 hectare or more.

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Meanwhile use A ‘meanwhile use’ is the temporary use of vacant buildings or land for a socially beneficial purpose until such a time that they can be brought back into commercial use again. It makes practical use of the ‘pauses’ in property processes, giving the space over to uses that can contribute to quality of life and better places whilst the search for a commercial use is on-going.

Mitigation measures requirements to mitigate against the impact of a development.

National Planning Policy FrameworkThe National Planning Policy Framework sets out the Government’s planning policies for England and how these are expected to be applied. It provides a framework within which local people and their accountable councils can produce their own distinctive local and neighbourhood plans, which reflect the needs and priorities of their communities.

Open Space - land used for parks, play areas nature conservation areas and outdoor sports.

Planning obligation See Section 106 agreement below.

Public realm The space between and within buildings that is publicly accessible, including streets, squares, forecourts, parks and open spaces.

Renewable energy Energy derived from a source that is continually replenished, such as wind, wave, solar, hydroelectric and energy from plant material, but not fossil fuels or nuclear energy.


Section 106 Agreements Confer planning obligations on persons with an interest in land in order to achieve the implementation of relevant planning policies as authorised by Section 106 of the Town and Country Planning Act 1990.

Supplementary Planning Documents (SPD) provide further explanation or elaboration of policies contained in Development Plan Documents.

Sustainable development Is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Viability Assessment – a financial assessment that establishes the residual land value of a development by deducting scheme costs (build cost, fees, finance, S 106 obligations, CIL and developer’s profit) from scheme value (the total value of the completed flats and houses and/or the investment value of any commercial floorspace

Photographers: Janie Airey, Mark Bellot, Huw Evans, Jack Latimer, Louise O’Gorman, Isabelle Plasschaert, Louis Quail, Claire Richards, Clive Sherlock, David Tett, Charlotte Wiig

Planning Regeneration and EnterpriseLambeth CouncilPhoenix House10 Wandsworth RoadLondon SW8 2LLwww.lambeth.gov.uk