Agenda item

Planning to support the release of phosphate credits within the Somerset Levels and Moors Ramsar catchment to unlock stalled housing developments

Meeting of District Executive, Thursday 3rd November 2022 9.30 am (Item 78.)

Decision:

RESOLVED:	That District Executive agreed:-
	a.	the structure that would be required to ensure any third-party nutrient neutrality credit market will provide appropriate safeguards to both the Council (as the Competent Authority) and Natural England as the relevant adviser, to ensure land use projects are designed to an appropriate specification, and provide certainty of delivery of the agreed P credits and ensuring: · the co-ordination of land use management projects that result in phosphate use reduction or phosphate removal, · the methodology for agreeing the level of P credits derived from each land use project, · the mechanisms for the marketing of credits, including the retention of any buffer, and; · the mechanisms and funding arrangements to ensure ongoing project monitoring and compliance over the “in perpetuity” term and the management arrangements for selling credits to developers.
	b.	to delegate to lead officers (Director of Service Delivery and Lead Specialist Built Environment) authority to confirm to landowners who can demonstrate that they can meet the provisions set out in this report that their credit sales will be accepted as providing an appropriate solution to securing nutrient neutrality, and
	c.	to advise the relevant land owners bringing forward P credits that securing a solution to phosphate mitigation alone, where the consequences of any such credit acquisition will result in the applicant seeking to re-visit issues of viability, or otherwise seek to diverge away from the other obligations normally sought by way of S.106 (A-C) will require the Council to assess (or re-assess) whether, the application proposal remains one that delivers a sustainable form of development, when considered against the provisions of the Development Plan as a whole.
Reason:	To update members on work that has been undertaken between South Somerset District Council, Natural England and landowners and their agents within the River Parrett catchment of the Somerset Levels and Moors (SLAM) Ramsar site specifically to enable a credit market to be offered to developers of sites within this catchment to applicants seeking planning permission, reserved matters consent and certain discharge of condition applications for which nutrient neutrality is a requirement to allow development to proceed.

Minutes:

The Portfolio Holder for Protecting Core Services introduced the report and noted that the report had been deferred from the previous Executive meeting in October for further information which had now been provided. He also reminded Members that the new Unitary Authority would be looking for phosphate solutions for the whole county.

The Lead Specialist for Built Environment advised that his report proposed a solution to allow housing developments to be built rather than a solution to the phosphate issue. He provided Members with a powerpoint presentation (published as a supplement to the agenda) to explain the range of proposed schemes.

In response to questions from Members, the Lead Specialist for Built Environment, the Director for Service Delivery and the Monitoring Officer advised:

· The developers who would buy the credits were those who were unable to provide a self-contained on-site solution to phosphates.

· The credits were a way forward for small developers and it was likely they would be sold as soon as January 2023.

· After vesting day the new Somerset Council could progress a different solution to the phosphate issue.

· By comparison with district council’s Unitary Councils generally had more land within their control to provide phosphate solutions

· Farmers would take commercial decisions to decommission from animal production and use their land for other purposes.

· En Trade fell within the co-ordinator of solutions category, acting on behalf of other phosphate mitigation providers.

· The best intervention was the creation of wetlands and the most immediate intervention was fallow land.

· Somerset West and Taunton Council had approved a 4.8ha wetland that would allow the building of 700 houses.

· Buffer planting strips were also a solution to phosphate mitigation.

· The wetland solution would be more attractive if Natural England allowed the stacking of credits with biodiversity net gain and carbon credit within one wetland area.

· Biodiversity net gain was being dealt with by the policy planners.

· Ecologists were in great demand and SSDC were using the services of an external ecology practice.

· Delivering affordable housing in areas where water treatment works had not been upgraded would be challenging until 2030; the date the Government had said Water Companies must complete all upgradings.

· Developers would pay up-front for the installation and monitoring of the phosphate solutions.

· Section 106 agreements were entered into under the law at that time and they were binding when they were agreed. Sometimes circumstances changed which was why the District Valuer could be asked to review them.

During discussion, the following points were made:

· The new Somerset Council were looking at ways to mitigate the phosphate issue.

· Need assurance that the monitoring of the phosphate mitigation solutions were funded.

· Castle Cary water treatment works were being upgraded that year to remove phosphate pollution.

· Mitigation by credits did not stop the phosphate pollution.

· This would be a trial for 5 months before the Unitary Council took over.

· Commend the officer for the detail provided in the report.

The Chairman noted that full responses had been provided by officers to the questions raised at the Scrutiny Committee the previous month.

At the conclusion of the debate, the Portfolio Holder thanked the officer for his comprehensive report and he proposed that the recommendations be agreed. They were seconded by Councillor Sarah Dyke and unanimously agreed by Members.

RESOLVED:	That District Executive agreed:-
	a.	the structure that would be required to ensure any third-party nutrient neutrality credit market will provide appropriate safeguards to both the Council (as the Competent Authority) and Natural England as the relevant adviser, to ensure land use projects are designed to an appropriate specification, and provide certainty of delivery of the agreed P credits and ensuring: · the co-ordination of land use management projects that result in phosphate use reduction or phosphate removal, · the methodology for agreeing the level of P credits derived from each land use project, · the mechanisms for the marketing of credits, including the retention of any buffer, and; · the mechanisms and funding arrangements to ensure ongoing project monitoring and compliance over the “in perpetuity” term and the management arrangements for selling credits to developers.
	b.	to delegate to lead officers (Director of Service Delivery and Lead Specialist Built Environment) authority to confirm to landowners who can demonstrate that they can meet the provisions set out in this report that their credit sales will be accepted as providing an appropriate solution to securing nutrient neutrality, and
	c.	to advise the relevant land owners bringing forward P credits that securing a solution to phosphate mitigation alone, where the consequences of any such credit acquisition will result in the applicant seeking to re-visit issues of viability, or otherwise seek to diverge away from the other obligations normally sought by way of S.106 (A-C) will require the Council to assess (or re-assess) whether, the application proposal remains one that delivers a sustainable form of development, when considered against the provisions of the Development Plan as a whole.
Reason:	To update members on work that has been undertaken between South Somerset District Council, Natural England and landowners and their agents within the River Parrett catchment of the Somerset Levels and Moors (SLAM) Ramsar site specifically to enable a credit market to be offered to developers of sites within this catchment and to set out recommendations that will allow for the sale of such third party credits (i.e. credits being presented to the market by private landowners rather than directly delivered by the Council) to be made available to applicants seeking planning permission, reserved matters consent and certain discharge of condition applications for which nutrient neutrality is a requirement to allow development to proceed.

Supporting documents:

Agenda item

Planning to support the release of phosphate credits within the Somerset Levels and Moors Ramsar catchment to unlock stalled housing developments

Council and Democracy