Preston Deputy Leader Clarifies Funding Position For Local Schools

The Deputy Leader of Preston City Council has clarified the position on funding for local schools raised from developer contributions.

Under the current system, most developers are required to pay a Community Infrastructure Levy (CIL), which was introduced across Central Lancashire. In Preston and South Ribble this money is paid into the City Deal to fund necessary infrastructure. In Preston the infrastructure included the Preston Western Distributor Road (Edith Rigby Way) and two primary schools in North West Preston.

The Local Planning Authority can also request additional developer contributions where it is necessary and justified. In North West Preston, contributions are also made towards the East-West Link Road (William Young Way). Both schemes have cost over £200m.

The Dept. of Education expects local authorities to seek developer contributions towards school places that are created to meet the need arising from housing development. Requests have also been made by Lancashire County Council (LCC) as the education authority for developer contributions towards secondary school provision in North West Preston.

The level of contributions that developers can afford are rigorously assessed by experts on behalf of the Local Planning Authority. In some cases, payment of CIL, a contribution towards the East-West Link Road and a secondary school education payment would make development unviable. Preston City Council does all it can to maximise the amount of contributions that can be paid to fund infrastructure that is required to support new development. In addition, the Council requires 30% of all new housing to be affordable which developers need to pay for. This has been successful in meeting local housing needs and Preston has the highest level of new affordable homes being built in the County.

In terms of additional education developer contributions where they are sought, the Council has been successful in securing millions of pounds. For example, the 1,100 home developments at Bartle Village and Cottam Hall. In addition, the Council has recently secured two sites for a secondary school and a primary school for LCC at the cost of a £1 each. These sites are reserved until they are needed.

On those developments where there is evidence that full contributions cannot be paid towards all the infrastructure required, government policy advises against local planning authorities refusing planning applications. Appeals would be made and allowed, at significant cost to the local taxpayer.

Councillor Martyn Rawlinson, Deputy Leader of Preston City Council and Cabinet Member for Resources, said:

"I am satisfied that Preston as the local planning authority is doing all it can to secure the maximum amount of contributions towards infrastructure.

"Preston as a City Deal partner has consistently delivered on our commitments in terms of achieving housing growth, paying over the New Homes Bonus and seeking to maximise payments made through the Community Infrastructure Levy.

"Preston City Council has worked hard to secure land and funding for the City Deal. The issue in Preston is that the bulk of the infrastructure funding is going towards necessary but expensive highway schemes. Lancashire County Council could, of course, decide to use some of the City Deal funds towards education, but that would leave a funding gap on transport. There is also a significant amount of new council tax revenue which Lancashire County Council will receive from new developments, the bulk of which is paid to fund county council services, including to fund education provision."

In a recent statement issued by Lancashire County Council regarding the contributions to education across the county, Preston City Council has asked Lancashire County Council to substantiate the figures released and to date, no information has been provided.

Further information

• Lancashire County Council - Funding challenges for school places linked to new housing discussed at full council 
• The Community Infrastructure Levy (CIL) is a levy that local authorities in England and Wales can choose to charge on new developments in their area. For details visit GOV.UK - Community Infrastructure Levy
• The money raised from the CIL can be used to support development by funding infrastructure that the council, local community and neighbourhoods need and in Preston's case, this includes new schools
• The New Homes Bonus (NHB) is a grant paid by central government to local councils to reflect and incentivise housing growth in their areas
• It is based on the amount of extra Council Tax revenue raised for new-build homes, conversions and long-term empty homes brought back into use. There is also an extra payment for providing affordable homes