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Scottish Planning Minister Derek Mackay delivered an address to Scottish Parliament on 28 March 2012 launching a range of reports and consultation papers under what was termed “Planning Reform: The Next Steps”.  The published papers represent a mix between a call for suggestions on the best way to proceed with further reform – such as what can be done to improve the facilitation of development and infrastructure, and whether the development plan examination process be changed for the better – and legislative changes to tweak the performance of the planning system – changes to S42 classifications and refinements to the GPDO.   However, the most significant of the announced consultation papers appears likely to lead to the biggest shake-up of planning fees in Scotland in recent times. 

 ‘Consultation on Fees for Planning Applications 2012’ seeks views on suggested draft regulations and fee structures aimed at making planning application fees reflect the time and resources required to determine them – changes which would reflect the higher fees structure found in England.  Although Table A of the consultation provides a brief summary of the changes, a more detailed summary of what we consider to be the key changes is provided below:

 Key Changes

 ·         Maximum planning fee to rise from £15,950 to £100,000 for a full planning permission; from £7,975 to £50,000 for a planning permission in principle (PPP).

·         Fee model of opening cost then a price per unit / floorspace increment remains.  Increment increases are now 100sqm rather than 75 sqm.
·         Ministers propose to link fees to performance and reduce fee levels in an authority where improved performance is not maintained.  They propose to investigate legislative measures that will enable this to happen.
·         Proposal to allow developers to spread the payment of fees for major applications – if a processing agreement has been signed.  This would be a percentage at the initial submission and the remainder at a defined point later in the determination process.
·         New fee classifications for ‘Energy Generation’ (including single wind turbines having 3 separate fee levels depending on height) and ‘retail or leisure use’ (including different fee levels depending on overall floorspace).
·         Fees for full planning permission for wind farms to be based on overall site area whereas other energy generation projects (such as biomass and energy from waste) to be based on new floorspace created.
·         The ‘free go’ rule would be abolished.  Subsequent applications within 12 months of an approval, refusal or withdrawal would now cost 50% of a standard fee.
·         New fee to be introduced for renewal of planning applications prior to consent expiring (50% of standard fee).
·         Section 42 application fees will depend on classification of application (£50 householder, £250 local, £500 major).
·         Clear indication that new fee structure means local authorities must stop the emerging practice of charging for pre-application discussions or associated planning services.
·         Revised fees would include cost of advertisements currently being paid by developers as part of the neighbour notification process.
·         The increased floorspace increments, more exemptions for household applications and other modifications could result in value benefits for smaller scale proposals and some categories of development such as residential alterations, warehousing and offices.
·         Development sites that span local authority boundaries to now require a separate application and appropriate fee for each LA it is situated within.
·         Two fees options to be imposed for change of use applications (fixed value for changes to a building; and a site area increment for changes to land).
·         Provision to be made for an automatic annual fee increase (1 April of each year) in line with the retail price index.

The full consultation paper – including the draft regulations and the consultation questions being asked – can be found at:

http://www.scotland.gov.uk/Resource/0039/00390663.pdf   Consultation responses are being sought by 22 June 2012.

The paper states that, following assessment of the consultation responses received, the Scottish Government would expect to lay this Statutory Instrument in Parliament in autumn 2012. 

 So in summary, fees are likely to increase significantly across the board, but remain less than half of those in force south of the border.  It appears that householders and smaller scale developments will see the least increase (and potential fee reductions) with a sharply rising scale towards the largest developments.  Examples of proposals that would trigger the new maximum fee include: housing developments of 427 units; a retail development of 13,000 sqm; or a 20 ha windfarm.  With the changes mooted to be imposed within 6 months then any developers with major proposals in the pipeline may be best looking to lodge a Proposal of Application Notice over the next month or so in order to beat the fee increase.