Hillingdon Council Cabinet Member and Officer Decisions
NEW ALLOCATION OF S106 CONTRIBUTIONS 2024/25: Regeneration and Economic Development Team Core Budget
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Democratic Services Location: Phase II Ext: 7655 DDI: 01895 277655 CMD No: 1356 To: COUNCILLOR MARTIN GODDARD CABINET MEMBER FOR FINANCE & TRANSFORMATION c.c. All Members of th e Residents Services Select Committee c.c. Sam Robins, Place Directorate c.c. Nicola Wyatt, Place Directorate c.c. Karrie Whelan, Corporate Director of Place c.c. All Ward Councillors Date: 11 March 2025 Non-Key Decision request Form D NEW ALLOCATION OF S106 CONTRIBUTIONS 2024/25: Regeneration and Economic Development Team Core Budget 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 Wednesday 19 March 2025 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: Regeneration and Economic Development Team Core Budget 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 & Transformation Cabinet Member Report – 11 March 2025 Part 1 Public NEW ALLOCATION OF S106 CONTRIBUTIONS 2024/25: Regeneration and Economic Development Team Core Budget Cabinet Member & Portfolio Cllr Martin Goddard Cabinet Member for Finance & Transformation Responsible Officer Karrie Whelan Corporate Director of Place Report Author & Directorate Sam Robins/Nicola Wyatt Place Directorate Papers with report Appendix A - details of s106 Construction training contributions to be allocated HEADLINES Summary To seek approval to allocate funds from the s106 construction training contributions held by the Council towards the Regeneration and Economic Development Team Core Budget towards staff time spent delivering S106 employment and training outcomes in 2024/25 and 2025/26. Putting our Residents First Delivering on the Council Strategy 2022-2026 This report supports our ambition for residents / the Council of: Have opportunities to earn an income that supports their families This report supports our commitments to residents of: A Thriving Economy Financial Cost This report seeks to allocate £114,000 from identified s106 contributions held by the Council. Select Committee Resident Services Ward(s) All RECOMMENDATIONS That the Cabinet Member for Finance and Transformation agrees the allocation and spend of s106 construction training contributions as follows: That a total of £114,000 (£57,000 per annum for two years 24/25 & 25/26) is allocated towards the Regeneration and Economic Development Team Core Budget to support the coordination of construction training work placements in the Borough. Cabinet Member Report – 11 March 2025 Part 1 Public Reasons for recommendation(s) In accordance with the Council Constitution, the allocation of Section 106 (S106) and Section 278 (S278) funds is required to be formally approved by the Cabinet Member for Finance & Transformation on a case- by-case basis. 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 Member 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. If the S106 funds are not allocated to an appropriate scheme, the unspent funds may need to be refunded. Two posts within the Regeneration and Economic Development team that deliver S106 employment and skills outputs are currently supported in part by S106 funding. If S106 funding is not agreed for 2024/25 and 2025/26 there will be an overspend of £114,000 on this cost centre over the two years. Democratic compliance / previous authority The Cabinet Member for Finance & Transformation has the delegated authority to allocate funds from planning obligation monies. Both the Cabinet Member for Community & Environment and the Cabinet Member for Children, Families & Education have been consulted and endorse the proposal. Select Committee comments None at this stage. SUPPORTING INFORMATION Background 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. Any S106 monies generated from planning agreements must be spent on their intended purpose and 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. Cabinet Member Report – 11 March 2025 Part 1 Public Developer obligations taken towards construction training and workplace co-ordinator The contributions outlined in Appendix A have been taken in relation to planning applications which were expected to generate significant employment opportunities during the construction phase of the development. Planning permission was therefore approved subject to the developer providing a financial contribution towards the cost of providing construction training courses and the provision of a workplace coordinator to coordinate "on site" training and employment opportunities arising from construction schemes in the borough. The level of contribution was calculated in proportion to the size of the development and the build costs of the scheme, in accordance with the Council’s Supplementary Planning Document on Planning Obligations as amended 2014. Proposed S106 allocation Officers are requesting that the s106 construction training contributions listed in Appendix A are allocated and spent towards officer time to support the Council’s Construction Work Placement Scheme (currently provided by QualifyMe) as outlined below. The proposed allocation of £57,000 per annum (for a two-year period) as a contribution towards officer time in providing support for this scheme, is proportionate to the time officers commit to work on construction training initiatives. Current status – Hillingdon Construction Work Placement Scheme (Qualify Me) Since 2013 the Council has utilised S106 funding relating to employment and skills to outsource the function to a company called QualifyMe – at a cost of circa £80,000 per year. QualifyMe deliver a construction training coordination service, delivering the skills outcomes on behalf of the Council that had been negotiated through S106. This is heavily supported by the Regeneration and Economic Development team who provide a range of support in relation to obligations and opportunities arising from planning applications, including the management of the S106 construction training coordination contract and service delivered by Qualify Me. Officers also support the construction training provision by Build Training which work with adults over 24 years old, who have challenging life circumstances providing access to training, job opportunities and sustainable career development within the construction industry. There are numerous sites in Hillingdon where the Senior Economic Development Officer is working with partners to deliver construction training schemes that would be relevant and accessible to participants in the Build training scheme. The changing nature and gradual expansion of construction training schemes in the Borough, has therefore seen the need for a continuing time commitment from officers within the Regeneration and Economic Development Team to facilitate these Programmes. Officers are therefore asking for a further allocation of approximately £57,000 per annum (for a two- year period) to facilitate officer time in providing support for these schemes. This figure is proportionate to the time officers commit to work on construction training initiatives. The Regeneration and Economic Development Manager undertakes strategic engagement with developers and landowners to ensure that employment and skills outcomes are a priority with developments at an early stage. This includes reviewing proposals and consulting to maximise opportunities for residents, meeting key developers such as Colt Data Centres to represent the Cabinet Member Report – 11 March 2025 Part 1 Public Council and resident’s interests and supporting the wider team to request and deliver S106 agreements. The Senior Economic Development Officer is responsible for assessing proposed developments for potential employment and skills outcomes , such as apprenticeship opportunities, training weeks, voluntary time etc. They draft and negotiate S106 obligations with the l egal team, then follow the process through to delivery agreeing all details of out puts to be delivered. Finally they are responsible for contract management of QualifyMe, who deliver the main body of the Council’s S106 employment and skills outputs – this includes procurement, regular meetings and ensuring that QualifyMe deliver a high-quality service meeting KPIs. Benefits Some of the outputs and benefits achieved by QualifyMe and the Regeneration and Economic Development Team utilising S106 construction training contributions include: • Since the appointment of Qualify Me Ltd the Council has been able to work with developers and their contractors to consistently maximise outputs in terms of training and employment. Qualify Me Ltd has now successfully introduced a shared apprenticeship scheme to enable trainees to move from site to site to complete their apprenticeships. • Over the last four years the availability of a coordination service has also assisted the council to secure the involvement of other organisations namely West London Skills (Build Training) College and Job Centre plus to secure even greater outputs on construction sites. • In addition to supporting apprenticeships and skills training, Qualify Me has also assisted in supporting more general employment opportunities for residents on construction sites in the Borough. Whilst many of the onsite jobs are often unskilled, there ar e numerous examples of residents securing permanent employment and skilled trades training following their initial site experience. • Under this contract a number of apprenticeship weeks have been delivered; and training weeks of other training provided, and general employment weeks provided to residents on sites across the borough. • Moving trainees from site to site is a constant challenge. Sometimes sites with obligations for a particular trainee discipline (e.g. carpentry or bricklaying) are not immediately available. Keeping trainees engaged during this period is sometimes a struggle and it has on occasion, been necessary for Qualify Me to directly cover trainee wage costs. This approach has enabled trainees to be placed on other construction sites that have no current obligations but are happy to support skills training. • This approach has served to ensure that the trainees do not experience significant gaps in their training and reduces the potential for trainees to drop out which, for some, is a very genuine possibility. • Financial assistance has also been given for the purchase of PPE kits and basic tools in cases of genuine hardship and paid for additional training for exceptional candidates to progress to construction site management roles. The benefits of this approach have been positive, and officers are keen to sustain this flexible approach and support by a more formal arrangement. • The ability to call on the services of the Coordination service has also resulted in a much wider range of training and employment positions on sites being accessed by residents. Skills and employment agreements often include provision for site manager trainees and Cabinet Member Report – 11 March 2025 Part 1 Public site administrator posts. These posts enable residents to gain broader experience without the requirement to focus at least initially on a specific skill base. • Over the past few years, the Council has also been successfully working with Build Training, in conjunction with Job Centre Plus to provide bespoke training and employment support for ‘at risk’ residents over 25 years old, who whilst keen to work on site, lack the relevant entry level requirements and face a range of barriers including homelessness and mental health challenges. It is pleasing to note that all learners on the pilot project have secured employment in a variety of construction related sectors. • There are several major new construction projects due to start in the borough in the near future. Many of the schemes in the Hayes town centre area will serve to afford significant training and employment opportunities over several years. There are two maj or development sites in Clayton Road that have secured planning permission and further phases of Nestles Avenue yet to come. Additionally, the Council led regeneration schemes in Austin Road and Avondale Drives will also provide many opportunities for resi dent employment and training. The workload currently fulfilled by the Qualify Me contract and the Regeneration and Economic Development Team is therefore expected to increase as these sites go live. • Financial Implications The report seeks the allocation of £114k from the S106 contributions as detailed in the table below:- S106 Funding Reference Scheme Amount Time Limit to Spend PPR/126/396B Unit 3, Millington Road, Hayes 3,605 N/A PPR/144/425C Land Rear of 2-24 Horton Road, West Drayton 5,500 Dec-2025 PPR/153/439A St Helens College, Eastbury Road, Northwood 3,600 N/A PPR/154/449A 5 Station Road, West Drayton 45,658 N/A PPR/155/445A St Johns School, Potter Street Hill, Northwood 15,294 Dec-2026 PPR/156/446A 6 Roundwood Avenue, Stockley Park 2,880 N/A PPR/159/555A Northwood College, Maxwell Road, Northwood 3,150 Nov-2027 PPR/160/161B Bourne Court Site, Bourne Court, Ruislip 4,800 Oct-2028 PPR/161/568A The Crane PH, Watersplash Lane, Hayes 22,095 Jan-2029 PPR/162/575C Gethceln House, Dawley Road, Hayes 7,418 Apr-2029 Total S106 £114,000 The above S106 are required to be allocated to fund the continued support for officers within the Regeneration and Economic Development Team for a further two years (Financial Years 2024/25 & 2025/26) at £57,000 per annum. All of the above S106 contributions, meet the conditions stipulated in the S106 agreements’ and if approved, will reduce the call on Council resources. Cabinet Member Report – 11 March 2025 Part 1 Public RESIDENT BENEFIT & CONSULTATION The benefit or impact upon Hillingdon residents, service users and communities? The purpose of the recommendation in this paper is intrinsically aligned with the Council vision to put residents first – as it is requesting funding to deliver beneficial employment and skills outcomes for local residents. This funding is necessary in order for the Council to directly deliver any S106 employment and skills schemes, and the benefits to residents and local communities of these schemes include more local job opportunities (across a variety of industries not just construction), career -related education opportunities in schools and colleges, and voluntary employee time provided across a variety of areas in local communities by the developers with whom the Council has S106 agreements. Consultation & Engagement carried out (or required) Not required CORPORATE CONSIDERATIONS Corporate Finance Corporate Finance have reviewed this report and concur with the Financial Implications set out above, noting the recommendation to allocated Section 106 moni es for a two -year period to contribute towards two posts within the Regeneration and Economic Development team to deliver S106 employment and skills outputs. Furthermore, it is noted that a total of £114k is to be allocated, £57k per annum for 2024/25 and 2025/26, which will be funded from developer contributions in accordance with the planning obligation agreements. Legal Legal Services has considered the report in the light of the Section 106 agreements and officer Reports referred to in Appendix 1,and concludes that the recommendation presented to approve the allocation of £114,000 (£57,000 per annum for two years 24/25 & 25/26) is allocated towards the Regeneration and Economic Development Team Core Budget to support the coordination of construction training work placements in the Borough is consistent with the terms of the agreements. 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 Cabinet Member Report – 11 March 2025 Part 1 Public APPENDIX A Details of the S106 Construction Training Contributions to be allocated towards the Regeneration & Economic Development Team core budget Cabinet Member Report – 11 March 2025 Part 1 Public
View Decision / Minutes Text
Executive Decision Notice – 1 April 2025
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:
Regeneration and Economic Development Team Core
Budget
Reference No. 1356
Date of decision Tuesday 1 April 2025
Call-in expiry date 5pm, Tuesday 8 April 2025
Relevant Select
Committee
Resident Services Select Committee
Relevant Wards West Drayton
Decision made
Cabinet Members
making the decision
Councillor Goddard - Cabinet Member for Finance &
Transformation
Decision Approved
That the Cabinet Member for Finance and Transformation
agreed the allocation and spend of s106 construction
training contributions as follows:
That a total of £114,000 (£57,000 per annum for two years
24/25 & 25/26) is allocated towards the Regeneration and
Economic Development Team Core Budget to support the
coordination of construction training work placements in
the Borough.
Reason for decision In accordance with the Council Constitution, the allocation of
Section 106 (S106) and Section 278 (S278) funds is required to
be formally approved by the Cabinet Member for Finance &
Transformation on a case-by-case basis.
Alternative options
considered and
rejected
Alternative options were set out in the report and considered. If
S106 funding was not agreed for 2024/25 and 2025/26 there
would be an overspend of £114,000 on this cost centre over the
two years.
Classification Part I – Public
Link to associated
report
Here
Relevant Officer
contact & Directorate
Sam Robins/Nicola Wyatt Place Directorate
Any interest declared
by the Cabinet
N/A
Executive Decision Notice – 1 April 2025
This notice is a public document also available to view on the Council's website www.hillingdon.gov.uk
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