Hillingdon Council Cabinet Member and Officer Decisions
New Allocation of S106 Contributions 2024/25: S106 Carbon Offset Fund – Carbon Reporting and Auditing
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Democratic Services Location: Phase II Ext: 7655 DDI: 01895 277655 CMD No: 1214 To: COUNCILLOR MARTIN GODDARD CABINET MEMBER FOR FINANCE c.c. All Members of th e Residents’ Services Select Committee Select Committee c.c. Nicola Wyatt - Central Services Directorate c.c. Ian Thynne - Central Services Directorate c.c. Dan Kennedy – Central Services Directorate Date: 28 August 2024 Non-Key Decision request Form D NEW ALLOCATION OF S106 CONTRIBUTIONS 2024/25: Carbon offset Fund – Carbon Reporting & Auditing. Dear Cabinet Members, Attached is a report requesting that a decision be made by you as an individual Cabinet Member. Democratic Services confirm that this is not a key decision, as such, the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012 notice period does not apply. You should take a decision on or after Thursday 5 September 2024 in order to meet Constitutional requirements about publication of decisions that are to be made. You may wish to discuss the report with the Corporate Director before it is made. Please indicate your decision on the duplicate memo supplied and return it to me when you have made your decision. I will then arrange for the formal notice of decision to be published. Anisha Teji Democratic Services Title of Report: NEW ALLOCATION OF S106 CONTRIBUTIONS 2024/25: Carbon offset Fund – Carbon Reporting & Auditing. Decision made: Reasons for your decision: (e.g. as stated in report) Alternatives considered and rejected: (e.g. as stated in report) Signed ……………………………………………………… Date…………………….. Cabinet Member for Finance Cabinet Member Report – 28 August 2024 PART 1 - Public NEW ALLOCATION OF S106 CONTRIBUTIONS 2024/25: Carbon offset Fund – Carbon Reporting & Auditing. Cabinet Member(s) Councillor Martin Goddard Cabinet Portfolio(s) Cabinet Member for Finance Officer Contact(s) Nicola Wyatt - Central Services Ian Thynne - Central Services Papers with report None HEADLINES Summary To seek approval to allocate funds from the s106 Carbon Offset Fund to fund Hillingdon’s carbon reporting and auditing of carbon sequestration in woodland. Putting our Residents First The report supports the Council objectives of strong financial management. Financial Cost This report seeks to allocate £40,550 from an identified s106 carbon offset contribution held by the Council to fund Hillingdon’s carbon reporting and auditing. Relevant Select Committee Residents’ Services Select Committee Relevant Ward(s) All RECOMMENDATION That the Cabinet Member for Finance approves that a total of £40,550 from the s106 carbon offset contribution held by the Council at EO/019/585A is allocated and used to fund Hillingdon’s carbon reporting and auditing of CO2 sequestration from woodland. Reasons for recommendation In accordance with the Council ’s Constitution, the allocation of Section 106 ( s106) and Section 278 (s278) funds is required to be formally approved by the Cabinet Member for Finance on a case-by-case basis – and any capital release, in conjunction with the relevant Cabinet portfolio Cabinet Member Report – 28 August 2024 PART 1 - Public holder. This report requests the approval for the s106 funds held at the case references detailed in this report to be committed as outlined in this report. Alternative options considered / risk management. The Cabinet Members may agree to fund the scheme and / or suggest alternative projects to which funds could be allocated within the terms of the relevant legal agreements. The Council collects Carbon Section 106 funds for projects for those identified in this proposal. The Council has adopted a carbon offset Guidance Note that allows for the use of S106 funding to be used to calculate and report on its carbon footprint. Should S106 not be used for this, then firstly the Council would have to revert to the general fund and secondly, would still have to find similar carbon saving projects to ensure compliance with the legal obligations of the fund. If the s106 funds are not allocated to an appropriate scheme, the unspent funds may need to be refunded. Select Committee comments. None at this stage. SUPPORTING INFORMATION 1. Planning obligations, or s106 agreements, are an established mechanism for mitigating planning effects arising from development proposals. The agreements are usually negotiated within the context of planning applications, between Local Planning Authorities and persons with an interest in the piece of land (owners, leaseholders or developers). They are intended to make development acceptable, which would otherwise be unacceptable in planning terms. 2. Any s106 monies generated from planning agreements must be spent on their intended purpose and ensure that the associated development contributes to the sustainability of the area by addressing the impacts of the development proposals. As a result, expenditure of s106 funds must relate to a specific development and must be in accordance with the corresponding legal agreement. If a contribution is not used for the intended purpose or not spent within the period allocated in the s106 agreement, the monies may need to be returned. Council’s Carbon Offset Fund – Allocation of Carbon Offset Contributions. Background 3. All major developments in London are now required to be zero carbon. To meet this target an onsite reduction of at least 35% beyond the baseline of part L of the current Building Regulations is required however, where further reductions cannot be achieved on-site, any shortfall should be provided in agreement with the Borough through a cash in lieu contribution towards the borough’s carbon offset fund or through alternative off -site provision. The London Plan allows for the shortfall in carbon, i.e the carbon tonnage short of the zero-carbon standard to be offset through an in -lieu payment which is collected at a rate of £95/tonne and annualised over a 30- year period. This formula is set by the London Plan and is based on the expected “carbon lifetime” of the National Grid as it moves to renewable resources thereafter. 4. Carbon offset contributions are collected from qualifying developments via a S106 agreement. The money can then be pooled to create a fund to be used by the Council towards a variety of projects that will contribute to the reduction in carbon emissions. Cabinet Member Report – 28 August 2024 PART 1 - Public 5. The GLA has provided guidance on how the Council should consider the use of the s106 funds collected. The Council's own guidance was informed by the approach recommended by the GLA. This encourages the prioritisation of the delivery of “hard measures” or projects that deliver tangible carbon savings, such as reducing energy demand in existing buildings or generating renewable electricity. However, the guidance also allows for the reporting and monitoring of carbon savings and the wider carbon footprint. This is an important part of carbon management as it informs progress and directs actions where it is needed most. Proposed allocation 6 Officers are requesting that a total of £ 40,550 from the S106 carbon offset contribution held at EO/01 9/585A and detailed in table 1 below is allocated and used to fund Hillingdon’s reporting of its carbon footprint and to determine the current carbon sequestration. The requested spend will ensure the delivery of the following: Carbon footprint reporting (£17,550 – combined with [8 – reporting toolkit] below) 7 The allocation will support the delivery of the Council’s reporting of its carbon footprint for 23/24 and 22/23 with a review of previous reporting years to ensure independent analysis and consistency. The Council has committed to reporting its carbon footprint on an annual basis within the Strategy Climate Action Plan. This report is essential to capture current performance and allow for informed decisions on where best to deliver ‘hard projects’ to reduce the carbon footprint further. Securing a carbon reporting toolkit and upskilling officers (£ 17,550 – combined with [7 – annual reporting and trend analysis] above) 8 The allocation will also deliver a toolkit and the training required to allow for reporting of the carbon footprint to be undertaken inhouse without recourse to external support. Carbon Footprint trend analysis and optioneering analysis (£8,500) 9 The proposal will also provide the Council with a trend analysis to determine the direction required to be taken to achieve carbon neutral targets. It will set out graded options for interventions with associated broad costings. This will assist with providing a detailed course for carbon management planning that is not currently available. Procurement of green energy advice (£5,950) 10 The allocation will deliver advice on the purchasing of green energy (i.e. from renewable sources) to the energy manager and other relevant officers. This will assist with the Council’s commitment to secure energy supplies from renewable sources in line with the commitments of the Strategic Climate Action Plan. Determining the carbon footprint of woodland (carbon sequestration) (£7,000 -including data) 11 The Council’s land holdings contain extensive woodland and forests with a large scale tree canopy that has significant carbon sequestration. The allocation will allow the Council to capture the carbon data of this sequestration to inform its carbon footprint reporting. Cabinet Member Report – 28 August 2024 PART 1 - Public Upskilling of officers in calculating carbon footprint from tree planting/offsetting (£1550 for onsite training) 12 The reporting of the carbon sequestration from the existing tree canopy will be supplemented by training from the consultants on how to capture carbon information on future tree planting projects. This will allow for the upskilling of officers to have a better understanding (a) of the implications of the Council’s tree planting aspirations and (b) to assist with the determination of carbon offsetting benefits; this latter skill (b) will also assist with the identification and collaboration on the commerciality of the sale of carbon sequestration. Table 1 – Details of the S106 Carbon Offset Contribution from which funds are to be allocated 13 The total contribution received and held at S106 reference EO/019/585A is £1,311,203 . From this, £65,218 has been allocated and spent towards the cost of managing the carbon Offset Fund (2023/24) , a nd £945,191 has been allocated towards the Civic C entre Decarbonisation Programme (Cabinet Member Decision (26/04/2024). If £40,550 is now allocated towards the scheme outlined in this report, there will be a remaining balance of £260,244 available to be allocate towards other eligible carbon reduction measures within the Borough. Financial Implications The report seeks the allocation of £41k from the S106 contribution held at EO/019/585A relating to Unit D, Prologis Park, Stockley Road, West Drayton towards Hillingdon’s carbon reporting and auditing of CO2 sequestration from woodland. Allocating the S106 contribution held at EO/019/585A meets the conditions stipulated in the S106 agreement. The scheme will be accounted for under the S106 funded revenue projects. RESIDENT BENEFIT & CONSULTATION The benefit or impact upon residents, service users and communities? The recommendations will enable external funds to be spent to maximum effect to provide viable improvements for the benefit of local communities. Cabinet Member Report – 28 August 2024 PART 1 - Public Consultation carried out or required Not required. CORPORATE CONSIDERATIONS Corporate Finance Corporate Finance concurs with the financial implications above, noting that the proposed scheme will be funded from Section 106 contributions in accordance with the planning agreements, with no impact on Council resources. Legal Legal Services has considered the content of the Section 106 agreement referred to in this report and conclude that the recommendations presented are consistent with the terms of the respective agreement. Comments from other relevant service areas The schemes have been developed in consultation with relevant service groups as appropriate. BACKGROUND PAPERS Planning Obligations Supplementary Planning Document Adopted July 2008 and amended July 2014. Carbon Offset Funds: Greater London Authority Guidance for London’s Local Planning Authorities on establishing carbon offset funds July 2022
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Executive Decision Notice – 5 September 2024
This notice is a public document also available to view on the Council's website www.hillingdon.gov.uk
OFFICIAL EXECUTIVE DECISION NOTICE
PUBLISHED BY DEMOCRATIC SERVICES
Notice is hereby given that the following decision(s) have been made today by
Cabinet Members at the London Borough of Hillingdon:
Title of decision NEW ALLOCATION OF S106 CONTRIBUTIONS
2024/25: Carbon
offset Fund – Carbon Reporting & Auditing
Reference No. 1214
Date of decision Thursday 5 September 2024
Call-in expiry date Thursday 12 September 2024
Relevant Select
Committee
Residents’ Services Select Committee
Relevant Wards All
Decision made
Cabinet Members
making the decision
Councillor Martin Goddard – Cabinet Member for Finance
Decision Approved
That the Cabinet Member for Finance approves that a total
of £40,550 from the s106 carbon offset contribution held by
the Council at EO/019/585A is allocated and used to fund
Hillingdon’s carbon reporting and auditing of CO2
sequestration from woodland.
Reason for decision In accordance with the Council’s Constitution, the allocation of
Section 106 (s106) and Section 278 (s278) funds is required to
be formally approved by the Cabinet Member for Finance on a
case-by-case basis – and any capital release, in conjunction
with the relevant Cabinet portfolio holder. This report requests
the approval for the s106 funds held at the case references
detailed in this report to be committed as outlined in this report.
Alternative options
considered and
rejected
The Cabinet Members may agree to fund the scheme and / or
suggest alternative projects to which funds could be allocated
within the terms of the relevant legal agreements. The Council
collects Carbon Section 106 funds for projects for those
identified in t his proposal. The Council has adopted a carbon
offset Guidance Note that allows for the use of S106 funding to
be used to calculate and report on its carbon footprint. Should
S106 not be used for this, then firstly the Council would have to
revert to the general fund and secondly, would still have to find
similar carbon saving projects to ensure compliance with the
legal obligations of the fund. If the s106 funds are not allocated
to an appropriate scheme, the unspent funds may need to be
refunded.
Executive Decision Notice – 5 September 2024
This notice is a public document also available to view on the Council's website www.hillingdon.gov.uk
Classification Part I – Public
Link to associated
report
Here
Relevant Officer
contact & Directorate
Nicola Wyatt - Central Services
Ian Thynne - Central Services
Any interest declared
by the Cabinet
Member(s) /
dispensation granted
N/A
Implementation of decision & scrutiny call-in
[Internal Use only]
When can this
decision be
implemented by
officers?
Officers can implement Cabinet Member decision in this notice only
from the expiry of the scrutiny call-in period which is:
5pm on Thursday 12 September 2024
However, this is subject to the decision not being called in by
Councillors on the relevant Select Committee. Upon receipt of a
valid call-in request, Democratic Services will immediately advise
the relevant officer(s) and the decision must then be put on hold.
Councillor scrutiny
call-in of this
decision
Councillors on the relevant Select Committee shown in this notice
may request to call-in this decision. The request must be before the
expiry of the scrutiny call-in period above.
Councillors should use the Scrutiny Call-in App (link below) on their
devices to initiate any call-in request. Further advice can be sought
from Democratic Services if required:
Scrutiny Call-In - Power Apps (secure)
Executive Decision Notice – 5 September 2024
This notice is a public document also available to view on the Council's website www.hillingdon.gov.uk
Further information These decisions, where applicable, have been taken under The
Local Authorities (Executive Arrangements) (Meetings and Access
to Information) (England) Regulations 2012.
This is the formal notice by the Council of the above executive
decision, including links to the reports where applicable.
If you would like more information on this decision, please contact
Democratic Services on 01895 250636 or email:
democratic@hillingdon.gov.uk.
Circulation of this decision notice is to a variety of people including
Members of the Council, Corporate Directors, Officers, Group
Secretariats and the Public. Copies are also placed on the
Council’s website.
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