Public Document Pack

To : Councillor Argyle, Chairperson ; Councillor Milne , Vice Chairperson ; and Councillors Bellarby, Corall, Cox, Finlayson, Grant, Merson, Milne, Smith, Thomson, Topping and Yuill.

Aberdeen City Council Substitute Members: Councillors, Cormie, Delaney, Donnelly, Graham, Jean Morrison and Taylor.

Aberdeenshire Council Substitute Members: Councillors Clark, Gardiner, Gray, Kitts-Hayes, Owen and Stephen Smith.

Please note that a substitute member may only participate in the meeting when a substantive member is absent.

STRATEGIC DEVELODEVELOPMENTPMENT PLANNING AUTHOAUTHORITYRITY

FRIDAY, 24 APRIL 2015 at 2.00 pm Committee Room 4 - Town House

Your attendance is required at a meeting of the STRATEGIC DEVELOPMEN T PLANNING AUTHORITY to be held on FRIDAY, 24 APRIL 2015 at 2.00 pm at the above address.

RODERICK MURDO MACBEATH SENIOR DEMOCRATIC SERVICES MANAGER

ABERDEEN CITY COUNCIL

B U S I N E S S

1 Declaration of Interests

2.1 Minute of 10 December 2014 (Pages 1 - 4)

2.2 Minute of 6 February 2015 (Pages 5 - 6)

2.3 Minute of 25 March 2015 (Pages 7 - 8)

3 Development Plan Scheme 2015/16 (Pages 9 - 18)

4 Scheme of Delegation (Pages 19 - 22)

5 Ratification of Consultation Responses (Pages 23 - 102)

6 Submission of Supplementary Guidance to Scottish Ministers - Strategic Transport Fund (to follow)

7 Budget Monitoring 2014/15 (Pages 103 - 106)

8 SDPA Bulletin (Pages 107 - 300)

Website Address: www.aberdeencityandshire-SDPA.gov.uk

Should you require any further information about this agenda, please contact Iain Robertson, tel (01224) 522869 or email [email protected]

Agenda Item 2.1

STRATEGIC DEVELOPMENT PLANNING AUTHORITY

WOODHILL HOUSE, ABERDEEN

WEDNESDAY 10 DECEMBER, 2014

Present :- Councillors R Milne (Chair), P J Argyle (Vice Chair), P W Bellarby, J B Cox, A Donnelly (substituting for R Thomson), A Finlayson, R J Merson, J Morrison (substituting for R Grant), G Owen (substituting for N J Smith) and B A Topping.

Officers :- Strategic Development Planning Authority : Strategic Development Plan Manager Nestrans : Transport Executive (Strategy & Delivery) Aberdeen City Council : Head of Planning and Sustainable Development. Aberdeenshire Council : Head of Planning and Building Standards, Principal Accountant, Policy Planner (A Beldowski) and Committee Officer (F Brown).

DECLARATION OF MEMBERS’ INTEREST

No declarations of interest were intimated.

APOLOGIES

Apologies for absence were intimated on behalf of Councillors J Corall, R Grant, N J Smith, R Thomson and I Yuill.

MINUTE OF PREVIOUS MEETING 24 SEPTEMBER, 2014

1. The Authority had before it the minute of its previous meeting of 24 September, 2014.

Under matters arising from the minute, article 6 (resolution 2) the Strategic Development Plan Manager provided the SDPA with a presentation on the progress and actions taken by Aberdeen City and Aberdeenshire for improvements in broadband speeds at as June, 2014. The Strategic Development Plan Manager reported that while he had intended to submit a report to the SDPA meeting in December he had decided to wait until March, 2015 to allow him to provide up-to-date information which would incorporate a recent Ofcom report which had assessed broadband speeds in the two authorities and also the outcome of an Audit Scotland report which would be published in February, 2015.

The Authority resolved: (i) to approve the minute as a correct record; (ii) in relation to article 6 to the minute (resolution ii) the Strategic Development to note that a report on improvements to broadband speeds in Aberdeen City and Aberdeenshire would be presented to the next SDPA meeting in March, 2015; (iii) in relation to article 6 to the minute (resolution (iii) to note that Aberdeen City currently has 37 entries in the Buildings at Risk Register (34 of those are classified as ‘at risk’ and 3 which are classified as ‘restoration in progress’).

Page 1

DRAFT SUPPLEMENTARY GUIDANCE – STRATEGIC TRANSPORT FUND

2. The Authority had before them a report by the Strategic Development Plan Manager which sought consideration of the Draft Supplementary Planning Guidance for the Strategic Transport Fund as presented in Appendix 5 to the report. The Authority were advised that once approved the document would be issued for consultation for a period of 8 weeks beginning 12 December, 2014 until 6 February, 2015 with the results then being presented to the SDPA at their next meeting on 25 March, 2015.

The Strategic Development Plan Manager introduced the report and advised the Authority that the purpose of the report was to replace the ‘non statutory’ guidance for delivering identified projects through the Strategic Transport Fund with ‘statutory’ guidance which would formally form part of the development plan and which would strengthen the weight given to the guidance in the decision making process for planning applications, including appeals.

The Strategic Development Plan Manager highlighted a number of corrections to the report, following the last minute finalisation of Appendix 4: Cumulative Transport Appraisal (CTA) Addendum, namely:-

(i) Section 3.10 – there were no longer any exceptions for cumulative impact from development zones to the intervention areas where new infrastructure was required to address cumulative impact;

(ii) Section 3.16 – the third sentence which reads “The evidence that does exist would point to a zone just applying to the ‘Ellon’ and ‘Inverurie’ areas (no development is proposed in the Aberdeenshire Local Development Plan for the area south of Newtonhill so no separate zone was created for that area for modelling purposes” could no longer be supported by the evidence.

The Authority resolved: (i) To issue the draft Supplementary Guidance as presented in (Appendix 5) to the report for consultation for a period of 8 weeks with the results of that consultation being reported to the next meeting of the SDPA in March, 2015; (ii) To request a report from the SDPA’s Treasurer on the potential for borrowing to front-fund the required infrastructure.

SDPA BUDGET MONITORING 2014/15

3. The Authority had before them a report by the Treasurer of the SDPA which provided the Authority with the Strategic Development Planning Authority budget monitoring and forecast position for 2014/15 as at 31 October, 2014 as provided in Appendix 1 to the report.

The Authority resolved :

(i) To note the budget monitoring position and forecast outturn as at 31 October, 2014

Page 2

SDPA BULLETIN 2014

4. The Authority had before them an information bulletin prepared by the Strategic Development Plan Manager which informed members on key issues relating to the work of the Authority where no decisions were currently required.

Details contained within the bulletin included:- • Strategic Development Plan Update • Ministerial Changes in the Scottish Government • Planning Performance Reports • Other SDPAs • Scottish Government Review of Strategic Development Plans • Local Development Plan Update • Regional Transport Strategy – Active Travel Action Plan • Household and Population Projections (National Records of Scotland) • Transport Infrastructure • City Centre Masterplan • Good Growth for Cities Index 2014 – Demos /PwC • Unemployment • Scotland’s National Marine Plan and Scottish Marine Regions • Economic Impact of Peterhead Port Expansion • Aberdeen Harbour Expansion (Nigg Bay Proposal) • Peterhead Carbon Capture and Storage Proposal

During discussion the Authority made reference to Appendix 1 to the report which provided the assessment of Peterhead Port Authorities expansion plans carried out by Biggar Economics for Scottish Enterprise, Aberdeenshire Council and Peterhead Port Authority. The Authority voiced concerns over the text as presented on Page 15 to the report which suggested that the quality of fresh fish landed at Peterhead harbour would improve with the development of a new fish market at Peterhead. The Authority highlighted that this statement was misleading as the quality of fish landed at Peterhead harbour had always been of the highest standard. It was noted that the development of Peterhead harbour was part of the Aberdeenshire Economic Strategy which along with partner organisations sought to provide alternative options for fish processors and future developments in Peterhead and this would complement the port’s new fish market. The strategy had an objective to maximise the value of seafood and this required a strong processing sector.

The Authority resolved : (i) To note the content of the bulletin; and (ii) To note that the development of Peterhead harbour would not improve the quality of fresh fish to market but would provide alternative options for fish processors and support the long term future of Peterhead Port.

SDPA PROPOSED MEETING DATES 2015/16

5. The SDPA had before them a list of proposed meeting dates for 2015/2016. All meetings would take place on a Wednesday at 2.00pm and each meeting would be hosted on a rotation basis between Aberdeen City and Aberdeenshire.

Page 3 • 17 June • 23 September • 9 December • 23 March

The Clerk advised the Authority that the proposed dates for June and December were no longer an option as Nestrans had identified those dates within their diary for 2015 and it was suggested that the Clerk should consult with the Chair and Vice Chair to identify alternative options which would be circulated to all members once agreed.

The Vice Chair then advised the Authority that all members of the SDPA would be invited to attend a Nestrans workshop on Friday 20 February, 2015 to consider key issues for the next Regional Transport Strategy and Strategic Development Plan (and potentially the ACSEF strategy). The workshop would take place in the morning and this would be followed by a meeting of Nestrans in the afternoon.

The Authority resolved : (i) To agree the following meeting dates:-

• Wednesday 25 March, 2015 • Wednesday 23 September, 2015 • Wednesday 23 March, 2016 (ii) To ask the Clerk to identify meeting dates in June and December 2015 and then provide those dates to the Chair and Vice Chair for ratification; and (iii) To note the date of the Nestrans workshop.

DATE OF NEXT MEETING – 24 MARCH, 2015

6. The Authority were asked to note that the next scheduled SDPA meeting would take place at 2.00 p.m. on Wednesday 25 March, 2015 in Committee Room 2, Town House, Aberdeen.

The Authority resolved :-

To note the date of the next SDPA meeting.

As this was the last meeting for which Councillor Milne would act as Chair to the SDPA, he extended his thanks to all members of the SDPA for their support during his term of office. He then wished the Vice Chair well in assuming that role from the next meeting in March, 2015 where a new Vice Chair would be duly appointed.

The Vice Chair on behalf of the SDPA expressed his appreciation to the Chair for all his hard work during his term of office.

Page 4 Agenda Item 2.2

STRATEGIC DEVELOPMENT PLANNING AUTHORITY

ABERDEEN, 06 February 2015 - minute of urgent meeting of the STRATEGIC DEVELOPMENT PLANNING AUTHORITY. Present : Councillor Argyle Chairperson ; and Councillor Milne, Vice Chairperson ; and Councillors Corall, Finlayson Thomson and Yuill (Aberdeen City Council); and Councillors Bellarby, Cox, Merson, Norman Smith and Topping (Aberdeenshire Council).

Officers: Robert Gray (Head of Planning and Building Standards, Aberdeenshire Council) and Tom Buchan (Finance, Aberdeenshire Council); Maggie Bochel (Head of Planning and Sustainable Development, Aberdeen City Council), Fiona Selbie (Senior Solicitor, Aberdeen City Council), David Jennings (Strategic Development Plan Manager, SDPA) and Roderick MacBeath and Iain Robertson (Democratic Services, ACC).

APPOINTMENT OF VICE CHAIR

1. The Chair advised that a Vice Chair representing Aberdeen City Council would need to be elected and requested that any nominations for the positions of Vice Chair be intimated.

Councillor Ramsay Milne was nominated as Vice Chair.

The Authority resolved : to appoint Councillor Ramsay Milne as Vice Chair.

CONSULTATION BY ABERDEENSHIRE COUNCIL ON PLANNING MATTER (RESPONSE REQUIRED BY 6 FEBRUARY 2015)

2. The Authority had before it a report by the Strategic Development Plan Manager.

The purpose of the report was for Aberdeen City and Shire Strategic Development Planning Authority (SDPA) to agree a response to the consultation by Aberdeenshire Council on an application to modify the s75 agreement in relation to the Strategic Transport Fund contribution at Chapleton of Elsick.

The Strategic Development Plan Manager talked the Authority through the report. Thereafter, there followed some discussion about the report with a particular focus on scrutinising the application for the variation of the Minute of Agreement between the two parties and the SDPA’s proposed response.

The report recommended – that the Authority agree to the report, including Appendix 2 as its response to the consultation by Aberdeenshire Council on the application to vary the terms of the s75 agreement at Chapleton of Elsick (APP/2014/4424).

The Authority resolved : to approve the recommendation, subject to two minor amendments to Appendix 2 relating to the terminology used to refer to the applicant’s proposed mitigation.- COUNCILLOR ARGYLE; Chairperson.

Page 5 This page is intentionally left blank

Page 6 Agenda Item 2.3

STRATEGIC DEVELOPMENT PLANNING AUTHORITY

ABERDEEN, 25 March 2015 - minute of meeting of the STRATEGIC DEVELOPMENT PLANNING AUTHORITY. Present : Councillor Argyle Chairperson ; and Councillor Milne, Vice Chairperson ; and Councillors Finlayson, Grant, Thomson and Yuill (Aberdeen City Council); and Councillors Bellarby and Topping (Aberdeenshire Council). Councillor Jean Morrison (Aberdeen City Council) attended as an observer.

Officers: Robert Gray (Head of Planning and Building Standards, Aberdeenshire Council) and Ruth Taylor (Finance, Aberdeenshire Council); Dr Margaret Bochel (Head of Planning and Sustainable Development, ACC), David Jennings (Strategic Development Plan Manager, SDPA) and Iain Robertson (Democratic Services, ACC).

Opening Remarks

1. The Chair welcomed members and invited David Jennings (Strategic Development Plan Manager) to explain the purpose and necessity of the meeting.

Mr Jennings explained that the agenda for the meeting had been stripped back to the statutory minimum in light of a forthcoming meeting of the Standards Commission for Scotland which was to consider an application for a Dispensation from the rules on Interests, which would allow members of Nestrans to consider Nestrans–related matters (such as operation of a Strategic Transport Fund) at the SDPA, or at Council meetings. While not directly an issue for the SDPA, the matter before the Standards Commission could have an impact on consideration of the Strategic Transport Fund (which was due to be the substantive item on the agenda). Aberdeenshire Councillors who had been or were members or substitute members of the Nestrans Board had declared an interest and withdrew from the meeting when the Council considered the Chapleton of Elsick application to modify the S75 agreement.

Mr Jennings added that the automatic dispensation which allowed elected members to consider the same substantive issues at a number of councillor-only committees did not apply because of the presence of non-elected members on the Nestrans Board. Mr Jennings further explained that, as there was a significant crossover of members between Nestrans and the SDPA and based on legal advice, he thought it prudent to postpone consideration of the Strategic Transport Fund until the Standards Commission had met on 30 March and more was known on the implications that their recommendations might have on the development of the supplementary guidance.

Mr Jennings informed members that as a result of this, the meeting had been scaled back to one item which was the approval of the 2015-16 budget that had to be approved by the end of the financial year on 31 March.

SDPA Budget 2015-2016 to 2019-2020

2. The Authority had before it the SDPA budget report for 2015-16 for the Authority to agree and the draft budgets for 2016-17 to 2019-20 for the Authority to

Page 7 note. The report proposed that the complement of dedicated staff would remain at one Manager and one Senior Planner for the period and explained that there would be an increase in costs compared with the 2014-15 forecast as the Senior Planner’s post had remained vacant throughout 2014-15. The report noted that work done by outside contractors would be in the region of £30,000 for 2015-16 largely due to work on the Housing Market Area Review and the Housing Need and Demand Assessment; the report also added that outside contractor costs were anticipated to drop in subsequent years until 2018-19 when the next Strategic Development Plan examination would commence. The report also explained that Other Income reflected the release of £104,000 held in reserves since the inception of the Authority and that the outlined budgets for 2016- 17 to 2019-20 provided only provisional figures.

Ruth Taylor summarised the report and explained that due to budgetary uncertainties both Councils would contribute £69,000, the same amount as in 2014-15. Ms Taylor also explained that the projected deficit of £17,000 in the financial year 2019-20 would not transpire as the costs would be covered in preceding years by an increase in both Councils contributions and/or through budgetary cuts.

Ms Taylor then answered questions from the Authority which focussed on the fluctuation between the Advertising and Promotions revised 2014-15 budget of £4,000 and the revised 2014-15 forecast of £10,000. Ms Taylor explained that these costs were higher than usual and the increased expenditure was largely due to advertisements in the Press and Journal which were comparatively expensive. Ms Taylor also added that these costs would be contained and offset against other costs in the wider Administration Costs budget.

The report recommended- that the Authority: (a) agree the Budget for 2015-16; and (b) note the provisional budgets for 2016/17 to 2019/20.

The Authority resolved : (i) to agree the Budget for 2015-16; and (ii) to note the provisional budgets for 2016-17 to 2019-20.

3. The Clerk then informed members that a date had to be set for the postponed meeting of the Authority. The Authority agreed to rearrange the meeting for 2pm on 24 April and instructed the Clerk to send out appointments to all members later that day. - COUNCILLOR PETER ARGYLE; Chairperson.

Page 8 Agenda Item 3

ABERDEEN CITY & SHIRE STRATEGIC DEVELOPMENT PLANNING AUTHORITY

Date: 24 April 2015

Title: Development Plan Scheme 2015/16

1 Purpose of Report

1.1 The purpose of this report is to seek approval from the Strategic Development Planning Authority (SDPA) for a replacement development plan scheme.

2 Background

2.1 Under s20B of the Town and Country Planning (Scotland) Act 1997, the SDPA is required to prepare a development plan scheme (DPS) at least annually. The DPS needs to set out the programme for preparing and reviewing the strategic development plan and what is likely to be involved at each stage.

2.2 The current DPS was published by the SDPA in April 2014. A new DPS must therefore be published and submitted to Scottish Ministers by April 2015.

3 Review of 2014/15

3.1 The focus of the DPS for 2014/15 was on the approval of the SDP by Scottish Ministers. This happened on 28 March 2014 and was followed in 2014/15 by the post-approval procedures.

3.2 As far as the activity in 2014/15 was concerned, a news item was placed on the SDPA website and press release issued on 11 April 2015 announcing the publication of the SDP as modified by Scottish Ministers, two weeks after the plan’s approval . A press notice was placed in local newspapers and copies of the plan were placed in public libraries and both council headquarters. This started the six week period within which the approval of the plan could be challenged in the Court of Session. However, no such challenge was made. An Action Programme, Strategic Environmental Assessment Post-Adoption Statement, Habitats Regulations Appraisal Record and Equalities and Human Rights Impact Assessment Record were all agreed by the SDPA at its meeting of 26 June 2014.

3.3 Consultation on statutory supplementary guidance on a strategic transport fund took place between December 2014 and February 2015, while the preparation of supplementary guidance on a South Peterhead Development Framework was not progressed during the year pending clarification around the expected timescales of relevant infrastructure projects.

3.4 A range of press releases were issued during the year, both in relation to the preparation of the plan and supplementary guidance as well as the publication of National Planning Framework and Scottish Planning Policy by the Scottish

Page 9 Government, the generous housing land supply evidenced by the Housing Land Audit and the importance of developer contributions to infrastructure projects. Towards the end of the year news items placed on the website focused on the publication of both local development plans by the two councils and the submission of the Peterhead Carbon Capture planning applications to Aberdeenshire Council.

4 Areas for Amendment

4.1 The publication of this DPS marks the start of work towards the preparation of a replacement for the SDP approved in March 2014. Legislation requires the new plan to be submitted to Scottish Ministers by 28 March 2018 (4 years from the approval of the current plan), with the intention of Scottish Ministers approving it by March 2019 (following its ‘Examination’).

4.2 The next three years are marked by elections in May each year for Westminster (May 2015), Holyrood (May 2016) and Local Government (May 2017). Given the fixed nature of the target for the plan’s submission to Scottish Ministers (March 2018), the timetable for the plan’s preparation has been heavily influenced by the need to avoid significant decisions being required in the immediate run-up to elections. One consequence of this, however, is the need to make decisions on a proposed SDP very soon after the local government elections in May 2017. It is recognised that this will require considerable engagement with Councillors prior to the elections as well as getting new Councillors up-to-speed with the process and plan immediately after the elections. The advantage of this timing is that it will enable the SDP and both LDPs to be agreed by the same council administrations, the disadvantage being the risks associated with needing to agree a proposed SDP very soon after the elections to enable submission to Scottish Ministers by the target date.

4.3 Informal engagement with the members of the SDPA and the Nestrans Board has already commenced through the joint seminar held in February 2015. A range of similar events will be held during 2015/16, as well as engaging all Councillors through meetings of each council.

4.4 In terms of a broad outline of the preparation of the next plan, the focus for the next 15 months will be on engagement with Councillors, stakeholders, agencies and communities as well as the preparation of the wider evidence base. The Main Issues Report will be published in August 2016, with the Proposed Strategic Development Plan published in September 2017. The Proposed Strategic Development Plan will be submitted to Scottish Ministers in March 2018 and approved by March 2019. More detail is included within Appendix 1.

4.5 Appendix 1 sets out the proposed ‘Development Plan Scheme 201 5/1 6’ .

5 Next Steps

5.1 The agreed DPS will be submitted to Scottish Ministers.

5.2 In line with a commitment to environmental responsibility and resource efficiency, the preferred means of distribution of the DPS will be through the

Page 10 SDPA website. However, there will be a limited circulation of hard copies as follows: · Scottish Ministers (2 copies); · All public libraries in Aberdeen City and Aberdeenshire; · All Key Agencies (2 copies each); · All Community Councils in Aberdeen City and Aberdeenshire; and · On request from the Strategic Development Plan Team.

5.3 In line with the decision of the SDPA in previous years, all Councillors will receive electronic rather than hard copies of the DPS.

5.4 This meets the statutory requirements for publication set out in s20B of the Town and Country Planning (Scotland) Act 1997.

6 Financial Implications

6.1 The costs associated with the publication and distribution of the DPS are likely to be around £500 . This will be met from the SDPA’s existing resources within the current financial year (2015/16).

7 Recommendations

7.1 It is recommended that the SDPA:

a) agree the Development Plan Scheme 2015/16 (Appendix 1) and its submission to Scottish Ministers;

b) agree the publication and circulation of the Development Plan Scheme as set out in paragraphs 5.2 and 5.3 above.

David Jennings , Strategic Development Plan Manager, Aberdeen City & Shire SDPA

Dr Margaret Bochel Robert Gray Head of Planning & Sustainable Head of Planning & Building Standards Development Aberdeenshire Council Aberdeen City Council

Report prepared by: David Jennings, SDP Manager, Aberdeen City and Shire SDPA

Page 11 This page is intentionally left blank

Page 12 Appendix 1: Development Plan Scheme 201 /1 

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'SBNFXPSL provide documents in other formats or languages if needed. Environmental responsibility We will advertise the opportunities to comment in the local press and notify those we think will have an interest in the Under the Planning etc (Scotland) Act 2006, we must respective documents. All documents will be available from contribute to sustainable development. This will mean our website and emails will be sent to those who have thinking about the environmental, social and economic effect registered their details on the site. (both locally and worldwide) of what we do and the strategic development plan we prepare. Our staff will use public Keeping you informed transport where possible, and we will try to reduce the We will keep you up-to-date about what we are doing and environmental effect of our work. all opportunities for you to get involved. Monitoring and review We have a database of contacts which we will keep up-to-date We will check this development plan scheme regularly for key agencies, councillors and community councils, although through the year, and we will update it every year. other groups and individuals will be responsible for telling us We will publish the next development plan scheme before about any changes to their contact details. April 201 . We will let all people with an interest in our work know about  important stages of the process. The internet allows us to provide regular updates and we will send an email to everyone who registers their email address with us on our website. We will send all press releases to every local newspaper (as well as some national media organisations) and put them on our website.

Page 16 PARTICIPATION STATEMENT How and whenw you can get involved!

April – JuOF 201 April 201 – "VHVTU 201 We will publicise the approval We will prepare a main issues "VHVTU 201 – 0DUPCFS 201 of the plan, write to all those report after taking to a range We will ask you what you who responded to the of interested groups and think of the main issues proposed plan and make a organisations to help identify report, holding meetings copy of the approved plan what the issues and options throughout the area for you available on our website as might be. We will publish a to ask questions. This is the soon as possible. Within three development plan scheme main opportunity for you to months of the plan’s approval setting out the programme get involved and influence we will publish the action and timetable for preparing the plan. programme and various other the plan, updating it every documents, including the year. post-adoption statement.

0DUPCFS 201 – 4FQUFNCFS 201 January 
– .BSDI 201 We will take into account all Scottish Ministers will the responses received to the consider the recommendations main issues report and contained in the report of the prepare a proposed plan. examination and decide whether to approve the plan PARTICIPATION
with or without modifications. STATEMENT

4FQUFNCFS
 – 0DUPCFS 201 201 – January 201 We will ask you what you think .BSDI   of the proposed plan. This is the MAINLY US All unresolved representations last point in the process that you made to the plan and our can provide input to the plan MAINLY YOU responses to them will be unless further information examined by a Scottish SCOTTISH is requested as part of the Government reporter who GOVERNMENT examination. will publish a report making recommendations about how the plan should be changed. Further information may be sought by the reporter if 0DUPCFS
– .BSDI 201 necessary. We will respond to all the issues raisedra in representations to the plan.pl

Throughout the process we willwi ll beb e open anda nd ttransparransparee nt abouta bo ut whatwha we are doing and how you can get involved. We will keep our contact database up to date and make regular updates to our website in relation to what is happening and how you can get involved. You can register on our website if you would like to receive updates. Or contact us directly.

Phone us Visit our websitePage Send us 17 an email Come in and see us Getting Informed If you would like to know more about the work of the SDPA you can register your details on our website or contact us in one of the following ways.

Phone: 01224 6 Email: [email protected]

Write to us at: "CFSEFFO
$JUZ
BOE
4IJSF
Strategic Development PlanOJOH "VUIPSJUZ 8PPEIJMM House, 8FTUCVSO
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Aberdeen AB 5 (# Website: www.aberdeencityandshire-sdpa.gov.uk

Page 18 Agenda Item 4

ABERDEEN CITY & SHIRE STRATEGIC DEVELOPMENT PLANNING AUTHORITY

Date: 24 April 2015

Title: Scheme of Delegation

1 Purpose of Report 1.1 The purpose of this report is for the Aberdeen City and Shire Strategic Development Planning Authority (SDPA) to agree a Scheme of Delegation.

2 Background 2.1 The need for an urgent response from the SDPA to a consultation from Aberdeenshire Council in relation to the Chapelton of Elsick s75A application highlighted a weakness in the decision-making arrangements covering the work of the SDPA - necessitating the special meeting held on 6 February 2015. 2.2 By their very nature, consultations are time-bound and it was important to get a response submitted before the closing date. However, in the case of the Chapelton of Elsick application, the application was submitted on 24 December and Aberdeenshire Council ’s decision -making timescales meant that it was determined on 12 March 2015. This meant there was no opportunity to agree a response without a special meeting. 2.3 The remit of the SDPA is contained within the Minute of Agreement which established the SDPA and an extract from this is contained in Appendix 1.

3 Discussion

3.1 In light of the need to turn round responses to consultations quickly and without the need for special meetings, a scheme of delegation is proposed below which will minimise the need for future special meetings at short notice and facilitate efficient decision-making by the SDPA.

3.2 The list of proposed delegated powers set out below are based on those used by Aberdeen City Council and Nestrans, tailored in such a way as to meet the specific circumstances of the SDPA. The SDPA already has a set of financial regulations so the scheme of delegation only needs to focus on non-financial matters.

3.3 It is proposed that the SDPA delegate the following matters to the Strategic Development Plan Management Group:

· To visit, or appoint a member of staff to visit, such institutions or sites as may be considered necessary where the expenditure involved can be met from the relevant budget;

· To attend, or arrange members of staff to attend, seminars, courses and meetings in the UK related to the aims and objectives of the SDPA where the expenditure involved is within the budgeted provision. Where the event

Page 19 is outwith the UK, this would be in consultation with the Chair and Vice Chair as well as being subject to any statutory requirements or guidance governing foreign travel by officers;

· To authorise (in consultation with the Chair and Vice Chair) the submission of consultation responses for applications of regional or national significance under planning or associated legislation on the basis of national policy, the Strategic Development Plan and any further guidance agreed by the SDPA. Any responses so issued to be reported to the next meeting of the SDPA for information.

· To authorise (in consultation with the Chair and Vice Chair) the submission of formal responses to policy consultations where the matter is not core to the SDPA’s aims and objectives . Any responses so issued to be reported to the next meeting of the SDPA for information.

· To authorise liaison with the Scottish Government and its agencies, adjoining authorities, other SDPAs and other stakeholders (including the wider public) in furthering the work of the SDPA to meet its aims and objectives.

· To carry out the day-to-day activities of the SDPA necessary to comply with the legislation and regulations covering the preparation of a strategic development plan and associated documentation and the wider aims and objectives of the SDPA.

3.4 The Strategic Development Plan Management Group is defined in the Minute of Agreement as the Strategic Development Plan Manager and the nominated lead managers of planning or their representative from each council.

3.5 The scheme of delegation will be kept under review to ensure it continues to meet the business requirements of the SDPA. Any amendments required to the scheme will be brought back to the SDPA for agreement at future meetings.

4 Recommendations

4.1 It is recommended that the SDPA agree the proposed scheme of delegation set out in para 3.3 above for implementation with immediate effect.

David Jennings, Strategic Development Plan Manager, Aberdeen City and Shire SDPA

Dr Margaret Bochel Robert Gray Head of Planning & Sustainable Development Head of Planning and Building Standards Aberdeen City Council Aberdeenshire Council

Report prepared by: David Jennings, SDP Manager

Page 20 APPENDIX 1

Minute of Agreement (March 2010) – Extract

The aims and objectives of the SDPA shall be as follows:-

1 To prepare a “strategic development plan” for an area known as a “strategic development plan area” and to keep under review the plan so prepared.

2 Prepare and keep under review a plan, for submission to Scottish Ministers, showing the boundary which the authority propose as the boundary of the strategic development plan area.

3 Set out in the strategic development plan a vision statement, a spatial strategy, and an analysis of the relationship between the vision statement, the spatial strategy and general development land use proposals in the plan area.

4 To monitor changes in the principal physical, economic, social, and environmental characteristics of the strategic development plan area.

5 To monitor the principal purposes for which land is to be used in the area.

6 To monitor the size and distribution of the population of the area.

7 To monitor the infrastructure of the area (including communications, transport and drainage systems and systems for the supply of water and energy) and to monitor how that infrastructure is used.

8 To monitor the impact of the policies and proposals contained within the strategic development plan.

9 To comment on nationally and regionally significantly planning applications.

10 To provide appropriate input to the Regional Transport Strategy, the Aberdeen City and Shire Economic Future Strategies, the Local Development Plans and any other significant issues which may arise from time to time and have a bearing on the Strategic Development Plan.

11 To prepare an implementation programme for action.

12 Prepare such maps, diagrams, illustrations and descriptive matter as may be prescribed by Government or thought appropriate by the SDPA.

13 From time to time, and when main issues and other principal reports are prepared, publish a statement as to the carrying out of those documents and make such documents available by various means including electronic means such as by means of the internet.

14 Other matters as may be prescribed by Government.

15 Any other matter which the SDPA consider it appropriate to include.

Page 21 This page is intentionally left blank

Page 22 Agenda Item 5

ABERDEEN CITY & SHIRE STRATEGIC DEVELOPMENT PLANNING AUTHORITY

Date: 24 April 2015

Title: Ratification of Consultation Responses

1 Purpose of Report 1.1 The purpose of this report is for the Aberdeen City and Shire Strategic Development Planning Authority (SDPA) to ratify two consultation response which were submitted on a provisional basis in advance of the SDPA’s meeting .

2 Background 2.1 Earlier on the agenda a report considered a new scheme of delegation for the SDPA. However, in advance of this being agreed, two provisional responses were submitted to Aberdeenshire Council in relation to one major residential application in Banchory (Auchattie) and one national development application in Peterhead (carbon capture and storage). These responses now require ratification by the SDPA.

3 Discussion

3.1 The two applications discussed below are very different in nature but are both important in their own right, raising strategic issues to which it is appropriate that the SDPA respond. The results of the two applications will be reported in future SDPA Update reports at future meetings of the SDPA.

Site at Auchattie, Banchory 3.2 In relation to the site south of the River Dee at Banchory, the application is for 400 homes, a health centre, employment and associated uses on an unallocated site outwith the settlement boundary of Banchory.

3.3 The applicant’s Planning Supporting Statement is attached at Appendix 1 and the provisional SDPA response at Appendix 2. The basis for the response from the SDPA is the claim by the applicant that the Strategic Development Plan is out-of-date and that as a consequence the ‘presumption in favour of de velopment that contributes to sustainable development’ contained in Scottish Planning Policy should apply and the application be approved. The proposed response firmly makes the point that the SDP is just a year old, contains a generous supply of housing land and that the development plan (SDP and LDP) is the basis against which the application should be determined.

Carbon Capture and Storage at Peterhead 3.4 In relation to the site at Peterhead Power Station (Boddam), the application is for the development of a carbon capture and storage (CCS) facility which will extract carbon dioxide (CO 2) from flu gases, compress and transport them for storage in the depleted Goldeneye field under the North Sea. The application

Page 23 only relates to the onshore elements of the scheme, out to the limit of terrestrial planning’s responsibility at the Mean Low Water Spring Tide.

3.5 The applicant’s Planning Supporting Statement is attached at Appendix 3 and the provisional SDPA response at Appendix 4. The basis for the response from the SDPA is to support the development of this key facility due to its inclusion as a proposal in the Aberdeen City and Shire Strategic Development Plan (2014) and National Planning Framework 3 (2014). The application has the potential to significantly reduce emissions of CO 2 from the power station (a key contributor to climate change) as well as enable Aberdeen City and Shire to have a competitive advantage in developing the expertise to roll out this technology around the world. This development is therefore extremely well supported by the plan’s vision, aims and objectives.

4 Recommendations

4.1 It is recommended that the SDPA:

a) agree the SDPA response to consultation set out in Appendix 2 relating to the application for planning permission at Auchattie, Banchory; and

b) agree the SDPA response to consultation set out in Appendix 4 relating to the application for planning permission at Peterhead Power Station.

David Jennings, Strategic Development Plan Manager, Aberdeen City and Shire SDPA

Dr Margaret Bochel Robert Gray Head of Planning & Sustainable Development Head of Planning and Building Standards Aberdeen City Council Aberdeenshire Council

Report prepared by: David Jennings, SDP Manager

Page 24 Appendix 1

Planning Supporting Statement

Application for Planning Permission in Principle for Residential-Led Development of 400 Homes Including 300 Private Rented, 75 Affordable Homes, 25 Assisted Living Units, Health Centre, Employment Uses (Incubator Units), Formation of Deeside Way Hub, Extension to the Deeside Way, Realignment and Improvement to the B974, Cycle paths, Landscaping, Open Space and Ancillary Works.

Sandlaw Farming Co Ltd

January 2015

Ryden LLP 25 Albyn Place Aberdeen AB10 1YL Tel; 01224 588866 Fax; 01224 589669

Page 25 Appendix 1

Contents

1.0 Introduction

2.0 Site Description & Proposals

3.0 Planning Context

4.0 Material Considerations

5.0 Justification

6.0 Conclusion

Page 26 Appendix 1

1.0 INTRODUCTION

1.1 This Planning Statement has been prepared by Ryden Property Consultants on behalf of the Sandlaw Farming Company Ltd in support of a planning application for a residential-led mixed use development and ancillary works on land to the immediate south of the River Dee at Braehead, Auchattie, Banchory. The application seeks:

· Planning Permission in Principle (PPiP) for Residential-Led Development Including 300 Private Rented Homes, 75 Affordable Homes, 25 Assisted Living Units, Health Centre, Employment Uses (Incubator Units), Formation of Deeside Way Hub, Extension to the Deeside Way, Realignment and Improvement to the B974, Cycle paths, Landscaping, Open Space and Ancillary Works.

1.2 Banchory is located on the banks of the River Dee at the foothills of the Grampian Mountains. The town is the main service and employment centre for the Marr Area of Aberdeenshire. The population of the settlement is around 7,000, served by two primary schools, a secondary school, two edge of town supermarkets, a golf course and a local high street containing a mix of retail outlets with a number of independent traders.

1.3 In early 2013, Aberdeenshire Council indicated its intention to review and update the extant Aberdeenshire Local Development Plan (ALDP) and issued a ‘call for sites’. Accordingly, Ryden LLP submitted a formal development bid to Aberdeenshire Council in April 2013, on behalf of Sandlaw Farming Co promoting the land at Braehead for residential development. Following this, Aberdeenshire Council published a Main Issues Report (MIR) on the ALDP in October 2013. As an ‘Officer’s Preference’ , the MIR failed to identify the land at Braehead (MIR reference MA016) for development. Ryden has made further representation on the MIR and its subsequent Addendum and continues to offer the site through the ongoing ALDP review process.

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1.4 Sandlaw Farming Co is committed to a fresh approach to housing, different from anything previously proposed in Banchory, or, indeed, the wider Aberdeenshire area. This approach would help to meet recent developments in Scottish Government Housing Policy, missing from the extant ALDP and its ongoing review process. Ultimately, Sandlaw Farming Co seeks to offer a diverse range of housing tenures to meet identified demand expressed by the local community and to contribute to the effective housing land supply.

1.5 A Project Team, offering a wide range of appropriate professional disciplines, has prepared a detailed Masterplan for the Braehead site. A substantial amount of work has been undertaken to inform the Masterplan and to reach the point where it will supplement an application for Planning Permission in Principle.

1.6 The proposals constitute a major development, as defined by the Town & Country Planning (Hierarchy of Developments) (Scotland) Regulations 2009, requiring a statutory minimum level of consultation. A Proposal of Application Notice (PoAN) was submitted on the 26 th June 2014 and the pre-application consultation proposed was acknowledged and accepted by the Council formally on 15 th July 2014. Significant public consultation has been undertaken to inform the Braehead Masterplan and PPiP application. Full details of the public consultation as set out within the PoAN are provided and discussed in further detail within a Pre- application Consultation Report, which has been submitted in support of the PPiP application.

1.7 This document should not be read in isolation, but should be considered along with all plans and supporting documentation, submitted in support of the PPiP application. As well as the relevant planning drawings, supporting documents include:

· Environmental Statement · Landscape and Visual Impact Assessment · Masterplan - Design and Access Statement · Pre-application Consultation Report · Transport Assessment · Ecology Report

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· Drainage Assessment · Braehead Vision Document

2.0 SITE DESCRIPTION AND PROPOSALS

2.1 The Braehead site lies to the south of the River Dee around ½ km from the centre of Banchory. The site is currently in limited agricultural use, subdivided by areas of woodland, a small watercourse, and stone dykes and hedges typical of such a rural location. The PPiP application seeks permission for 400 rented and affordable homes across a site area of approximately 8.93 Ha, however the total area identified within the Masterplan capable of development extends to approximately 17.53 ha and is bounded on the east by the main B974 road which connects Banchory to Strachan to the south. Off this road lies the Falls of Feugh, a popular tourist attraction.

(Figure 1: Site Context Map)

2.2 This boundary follows the B974 road round towards a southern edge before running along a woodland area separating the site from the road. This boundary extends to the narrow, unclassified road which links the B974 to the small settlement of Auchattie. The west boundary runs north-west along this road before turning east and following the tree belt round and back towards this road. The remaining portion of the west boundary connects the site with a cluster of residential properties that line the unclassified road. The

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north boundary of the site follows the tree line towards the small settlement of Deebank.

2.3 The topography of the site is typical of the surrounding area. The low lying undulating land offers potential for development as well as sensitive landscaping to establish containment and scale. The land slopes steeply towards the north and east boundaries which provide a natural landscape barrier. The topography of the local area, by contrast, is dominated by the hills either side of the Water of Feugh valley and Scolty Hill. Between the two hills is a relatively flat area with some local undulations sloping towards the River Dee.

2.4 Access would be served from the existing B974 Banchory to Strachan road. Initial assessments concluded that a realignment of the B974 road through the site would increase safety significantly, provide residential amenity and improve connectivity between Banchory, the site itself, and the surrounding area towards Strachan. The upgrade to the road network would be completed to comply with the local authority’s roads’ requirements and would take into account consultation with relevant stakeholders, including public transport operators.

2.5 The proposals for the site would create a distinctive, high-quality residential development that would balance a recognised need for a range of new housing tenures with sensitive treatment of the landform and its natural assets. The proposals seek to embrace and enhance the southerly facing aspects and respect the sensitivity of its rural locale. In keeping with national and local planning policy, a significant portion of the site would be retained and embellished as open space and woodland, providing permeable green linkages accessible to the entire community. It is intended to form pedestrian access throughout the site not only to the town centre but also to the rural areas beyond, linking into the Deeside Way and Scolty trails.

2.6 In addition to the proposed housing elements, the Braehead development would incorporate proposals for a Deeside Way interpretation centre and café, with incubator units for local enterprises. These would provide a focal point for the new

6

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community and a destination for local people and visitors that would add social and economic value to the area, increase local amenity and support the sustainability of the town centre of Banchory.

2.7 This application for Planning Permission in Principle seeks to establish the suitability of development proposals for the site. The plans submitted with the application delineate the area to be considered for the proposed development. Should permission be granted, appropriate conditions could be attached to ensure the local authority is satisfied on the detail relating to siting, layout and design. The application is also supplemented by an overarching Masterplan for the site. This sets out key strategic issues and how these have been addressed, phasing for development and overarching design principles against which detailed planning applications would be considered.

3.0 PLANNING CONTEXT

Aberdeen City and Shire Strategic Development Plan 2014

3.1 The Aberdeen City and Shire Strategic Development Plan (SDP) was approved by Scottish Ministers on 28 th March 2014 and sets the strategic context for development throughout Aberdeenshire. In terms of its Spatial Strategy. Banchory falls within an area identified for local growth and diversification. Within this area, the levels of growth in individual settlements are intended to relate to local needs, however the Plan recognises that the scale of this growth will vary from place to place. Schedule 1 of the Strategic Development Plan acknowledges an established land supply in local growth points within the Aberdeen Housing Market area of 1,468 homes of which 1,283 comprise the effective supply at 2011. The Plan allocates a further 3,700 houses to the local growth areas lying within the Aberdeen Housing Market Area for the period to 2035; the sites to be identified through respective Local Development Plans.

3.2 A key objective of the SDP is to increase the population of the City Region to approximately 500,000 by 2035 and achieve a balanced age range to help maintain and improve people’s quality of life. To

7

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achieve this, it sets a number of targets in terms of build rates and requires land to be made available through Local Development Plans for housing in line with the Spatial Strategy of Schedule 1 highlighted above.

3.3 A further objective is to ensure that new development meets the needs of the whole community, both now and in the future, and makes the area a more attractive place for residents and businesses. New housing is expected to meet the needs of the whole community, with appropriate levels of affordable housing and mix of types and sizes of homes in line with Local Development Plans and approved Supplementary Guidance. In local growth and diversification areas such as Banchory, the SDP stipulates that the focus needs to be on provision of smaller homes to buy and homes for rent within mixed use developments that respect the character of the landscape and local identity.

Aberdeenshire Local Development Plan 2012

3.7 The Aberdeenshire Local Development Plan (ALDP) was adopted by Aberdeenshire Council in June 2012. The Settlement Statement for Banchory, contained within Supplementary Guidance, identifies the site as falling out with the Banchory settlement boundary, with no specific allocation. Accordingly the site would be designated as “countryside”, within the Aberdeen Housing Market Area (AHMA). The key planning objectives for Banchory are to meet the local demand for housing; sustain existing services and provide opportunities for new services; and provide local opportunities for employment.

3.8 Policy 5 of the adopted Plan addresses housing land supply and advises that Aberdeenshire Council will support the development of housing in line with the Spatial Strategy of the Structure Plan. The Policy emphasises that at all times the Council will maintain an effective 5 year supply of land for housing. It advises that if a 7 year supply cannot be maintained, the Council will “draw down” extra land from future allocations to ensure it can maintain a 5 year effective housing land supply. Supplementary Guidance SG Housing 1: Housing Land Allocations 2007-2016 advises that the Council will approve new housing, subject to other Policies, on

8

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land allocated for immediate housing development (2007-2016). The aim of this Policy is to ensure that land allocated for housing in the Local Development Plan, to meet the Structure Plan’s housing requirement, is developed for housing and safeguarded from any other uses where possible.

3.9 Affordable housing is addressed under Policy 6 of the ALDP. It says that Aberdeenshire Council will support development that helps to meet the needs of the whole community. To assist with the provision of affordable housing in Aberdeenshire, new housing development must contain 25% affordable homes, unless otherwise specified in Supplementary Guidance. For Banchory, the target is 40%, sought through on-site provision. However, this has been superseded by SPP which sets a benchmark figure of 25% across Scotland.

3.10 Policy 8 of the ALDP deals with the layout, siting and design of new development. The Policy says that the Council will support new development on allocated sites where they conform to a previously agreed Development Framework and/or Masterplan. Accompanying Supplementary Guidance provides details of the Council’s approach to securing high quality design. Of particular relevance is Supplementary Guidance SG LSD2: Layout, Siting and Design of New Development. The Guidance advises that the Council will approve the layout, siting and design of new development, subject to other Policies if it satisfies certain criteria set out in the Guidance.

3.11 Policy 8 of the Plan also addresses the sustainability of new development to ensure that all developments contribute to reducing greenhouse gas emissions. Supplementary Guidance SG LSD11: Carbon Neutrality in New Development indicates that the Council will approve new development intended for human occupation if it is demonstrated that it will achieve at least a Bronze Active rating under Section 7 of the Building Standards Technical Handbook.

3.12 Developer Contributions are sought by Aberdeenshire Council to help overcome obstacles in granting planning permission. Policy 9, Developer Contributions, advises that Aberdeenshire Council

9

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will support development, if the developer makes a reasonable contribution, in cash or in kind to public services, facilities and infrastructure and the mitigation of negative effects on the environment, that fairly and reasonably relates in scale and kind to the proposed development, and is necessary to make the proposed development acceptable in planning terms. Further detail is provided in Supplementary Guidance dealing with developer contributions.

Masterplanning Process

(Figure 2: Braehead Masterplan Courtesy of EMA Architecture )

3.13 Within Planning Advice 7/2012, the Aberdeenshire Masterplanning process is set out as a guide for developers. Forming additional guidance to the implementation of SGLSD1, it reflects current national design guidance and seeks to enable the delivery of sustainable places. The process identifies the need to consider an integrated approach to site planning, urban design, sustainable transport, ecology, landscaping, and community

10

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involvement. It recognises the need to raise the quality of design for new developments in Aberdeenshire, to ensure future developments are designed to the highest standard, encompassing social, environmental and economic requirements to create the sustainable communities of the future.

3.14 While the Braehead site carries no specific land allocation within the ALDP and therefore does not require a Masterplan, the Project Team recognises the importance of Masterplanning to shape its vision for Braehead as an attractive, integrated and sustainable new community. Accordingly, significant work has been undertaken to progress a Masterplan to support the submission of a PPiP application.

3.15 In addition, a formal screening opinion was sought from the Council under the Environmental Impact Assessment (Scotland) Regulations 2011. The requirement for an Environmental Impact Assessment was confirmed by the Council on 22 nd November 2014. This Environmental Assessment has helped inform the preparation of the Masterplan and has been submitted to supplement the PPiP application.

3.16 Extensive public consultation has been undertaken on both the preparation of the Masterplan and the Application for Planning Permission in Principle. Details of that process are set out in the Pre-application Consultation Report, which has been submitted in support of this planning application. Throughout the design process, the Project Team has been committed to the widest possible engagement with the local community, the wider public and elected representatives at all levels.

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4.0 MATERIAL CONSIDERATIONS

Scottish Planning Policy

4.1 At a National level, relevant guidance is provided through Scottish Planning Policy (SPP). This document, approved in June 2014, advises that planning should ‘… take a positive approach to enabling high-quality development and making efficient use of land to deliver long-term benefits for the public while protecting and enhancing natural and cultural resources’. It promotes sustainability and place-making as Principal Policies in order to achieve four Planning Outcomes with the objective of Scotland becoming a ‘successful, sustainable place; a low carbon place; a natural resilient place; and, a connected place’ as set out by the National Planning Framework 3 .

4.2 SPP advises that Scottish Ministers expect the planning service to perform to a high standard. One of the core values of the planning service is to be plan- led, with plans being ‘ up-to-date and relevant’ . It also requires the service to focus on outcomes, maximise benefits and balance competing interests.

4.3 The 1997 Town and Country Planning (Scotland) Act requires planning applications to be determined in accordance with the development plan unless material considerations indicate otherwise. As a statement of Ministers’ priorities the content of SPP is a material consideration that carries ‘significant weight’.

Sustainability

4.4 SPP introduces a ‘presumption in favour of development that contributes to sustainable development’, in order to achieve the ‘right development in the right place’. The planning system is encouraged to support economically, environmentally and socially sustainable places by enabling development that balances the costs and benefits of a proposal over the longer term.

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4.5 At paragraph 33, SPP advises that where relevant policies are out of date or a development plan does not contain policies relevant to the proposal, then the presumption in favour of development that contributes to sustainable development will be a significant material consideration.

Placemaking

4.6 The overarching purpose of planning, as recognised by SPP, is to create better places. This should be achieved by the planning system supporting economic growth and regeneration through the creation of well-designed, sustainable places and environments. A greater emphasis is placed on the planning system directing the ‘right development to the right place’ through adopting a ‘design - led approach’ to ensure the creation of ‘high quality places’.

4.7 Paragraph 40 sets out a number of policy principles to guide decision making. These include optimising the use of existing resource capacities, particularly by co-ordinating housing and business development with infrastructure investment including transport, education facilities, water and drainage, energy, heat networks and digital infrastructure; using land within or adjacent to settlements for a mix of uses; and locating development where investment in growth or improvement would have most benefit for the amenity of local people and the vitality of the local economy. Together these principles seek to promote strong, resilient and inclusive communities in the right location which provide choice over where to live and the style of home in which to live.

Enabling Delivery of New Homes

4.8 As well as the principal policies above, SPP sets out a range of subject policies, among them enabling the delivery of new homes. It recognises that house building makes an important contribution to the economy and advises that planning can help to address the challenges facing the housing sector by providing a positive and flexible approach to development.

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4.9 At paragraph 110 it goes on to state that the planning system should; · Identify a generous supply of land for each housing market area to support the achievement of the housing land requirement across all tenures, maintaining at least a 5-year supply of effective housing land at all times; · Enable provision of a range of attractive, well designed, energy efficient, good quality housing, contributing to the creation of successful and sustainable places; and · Have a sharp focus on the delivery of allocated sites embedded in action programmes, informed by strong engagement with stakeholders.

4.10 Plans are required to address the supply of land for all housing and to ensure a ‘ generous’ supply of land. SPP advises that the target number of new homes to be built over the plan period should be increased by a margin of 10 to 20%, the exact margin dependent on local circumstances. Paragraph 119 advises that Local Development Plans should allocate a range of sites which are ‘effective or expected to become effective in the plan period’. Essentially, they should provide for a minimum of 5 years effective land supply at all times.

Local Development Plan Review 2016

4.11 It is acknowledged that Aberdeenshire Council is in the process of reviewing its Local Development Plan with the intention of its adoption in 2016. This Plan is required to conform to the Strategic Development Plan approved by Scottish Ministers on 28 March 2014. To date, a Main Issues Report has been published and consulted upon with the various representations and content of the proposed Plan considered by Area Committees and the Infrastructure Services Committee. More recently an Addendum to the Main Issues report was published to consider the implications of the new SPP, updated household forecasts and the 2014 Housing Land Audit. It is anticipated that the proposed Plan will be published early in 2015.

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4.12 However, the Council’s approach is fundamentally flawed, given the SPP requirement for plans to be up-to-date and relevant. The Strategic Development Plan simply rolled forward the housing allocations contained within the Structure Plan and extended the time horizon of the plan to 2035. The Structure Plan itself was predicated on 2008-based population and household projections which have been superseded by more recent projections in 2010 and 2012. Notwithstanding the more recent projections, no attempt has been made to consider the implications of an increased population and greater household numbers than originally planned for. As a consequence, the SDP seriously underestimates the housing requirement and only through the LDP process and / or the release of further sites can this be addressed.

Population Projections

4.13 The Structure Plan, approved in August 2009 and intended to cover the period to 2030 noted that the population of the City and Shire Region was around 440,000 in 2006. That Plan sought to increase the population to 480,000 by 2013 with the longer term ambition of increasing it to 500,000. The Strategic Development Plan, approved in March 2014, and covering the period to 2035 acknowledged that the population of the City Region was 465,000 in 2011 and expected it to grow to ‘around 500,000’ by 2035.

4.14 By comparison the 2008-based population projections (published in 2010) projected an increase in population from 449,000 in 2008 to 512,000 in 2033. The 2010-based projections (published in 2012) anticipated a population of 550,000 by 2030 increasing to 568,000 by 2035. The most recent 2012-based projections (published in 2014) anticipate a population of 565,000 by 2032 increasing to 586,000 by 2037.

4.15 Extrapolating the most recent 2012-based projections would suggest a population of circa 573,000 at the end of the plan period in 2035. This makes it clear that the current SDP should be planning for a population increase of 108,000 between 2011 (465,000) and 2035 (573,000) rather than the 35,000 it currently

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plans for. Between the City and Shire this is a discrepancy of 73,000 people of which just over 37,000 would be apportioned to the Shire.

Household Projections

4.16 Household projections, derived from population projections, provide a broad indication of housing requirement over the plan period. Household projections fluctuate due to household growth and formation rates influenced by long-term trends and economic circumstances, among other factors. The most recent 2012-based projections generally show a fall in the number of one-adult households and an increase in households containing three or more adults, or two or more adults with children. However, 2012 based projections for the Strategic Development Plan Areas published in November 2014 highlight a 45% increase in the number of households in Aberdeen City and Shire containing just one adult in the period between 2012 and 2037. While the 2012- based projections are lower than the 2010-based projections they are still higher than the 2008 projections on which the SDP housing requirement is based. The Aberdeen City and Shire SDP Area is also the fastest growing in terms of households with a 28% increase projected in the period 2012 to 2037. This, taken with the significantly more buoyant economy of the North East in recent years would dictate that additional housing land should be allocated.

4.17 The housing requirement set out in the Strategic Development Plan is derived from the 2008-based household projections published against the background of a reduction in new house building and a constrained mortgage market in much of Scotland. The 2010-based projections, published in June 2012 forecast a significant increase in household formation. The more recent 2012-based household projections, which are lower than the 2010 based projections, are cited in the Main Issues Report Addendum as justification for not increasing the housing allocations.

4.18 However, an analysis of the 2012-based projections published in July 2014 indicates that the principal projection still demonstrates a higher requirement for the period 2017 to 2026 than is set out in

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Figure 10 of the Strategic Development Plan. Overall in the City and Shire the shortfall is approximately 2,000 homes. This shortfall remains a significant concern, particularly in the context of SPP requiring a generous land supply. Therefore, additional sites are required to ensure a sufficient effective land supply throughout the lifetime of the Plan and beyond.

4.19 Indeed, to ensure, at the very least, an adequate supply of land, the high migration variant of household projections should be used. This would suggest a shortfall in the City and Shire over the period 2017 to 2026 of around 6,700 homes. Notwithstanding the lower household projections, there is justification for further land releases to ensure a generous supply of land capable of maintaining a 5 year effective supply at all times, and, in particular, at the end of the Plan period.

4.20 The case for the release of further housing land is reinforced by the strong economic performance of the North East compared to that of Scotland as a whole. This is clearly evident from the more recent 2012 based household projections for each of Scotland’ s SDP Areas published in November 2014. In such circumstances SPP advises that the margin of flexibility in the housing land supply should be increased to ensure a ‘generous’ supply of housing land.

2014 Housing Land Audit

4.21 The MIR Addendum relies on the fact that the 2014 Housing Land Audit identified a 6.2 years supply of effective land in the Aberdeen Housing Market Area across the City and Shire. However, this falls short of SPP’s suggested 20% margin of flexibility, which should be utilised to reflect the economic performance of the North East and the consequential pressures for housing. It is also at odds with Policy 5 of the LDP which advises that if a 7 year supply cannot be maintained t he Council will “draw down” extra land for future allocations. That is only feasible where those future allocations are capable of early delivery. The Addendum further highlights the post-5 year supply of 20,283 homes in the Aberdeen Housing Market Area as justification for maintaining the status quo in terms of housing land allocations across the City and Shire.

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Overall in the City and Shire SDP area, the post-5 year effective supply is indicated as 24,400 dwellings.

4.22 To put this in context, the Strategic Development Plan, approved by Scottish Ministers in March 2014, sets a target of 2,500 homes per annum by 2016 increasing to 3,000 per annum by 2020 across the City and Shire. At a conservative estimate, this would suggest, a requirement for an effective land supply of 28,000 houses, some 4,000 more than the current post-5 year supply.

4.23 In failing to increase the housing land allocations, Aberdeenshire Council is relying on Aberdeen City to maintain a 5 year supply of effective housing sites at all times, particularly towards the end of the Plan period. A detailed analysis by Homes for Scotland indicates that there will be a shortfall in the Aberdeenshire part of the Aberdeen Housing Market Area towards the end of the Plan period.

4.24 This shortfall is also evident from a broad overview. The Addendum highlights a post-5 year effective supply of 20,283 homes in the Aberdeen Housing Market Area; of this 12,482 homes lie within the City with the remaining 7,801 within the Shire part of the Aberdeen Housing Market Area. This equates to 62% and 38% respectively. By comparison the housing allowances set out in Schedule 1 of the Strategic Development Plan allocate 54% to the City and 46% to the Shire. Therefore, a significant imbalance needs to be addressed. To achieve the same proportions, the post-5 year effective supply in the Shire part of the Aberdeen Housing Market Area should be 10,632 homes, an increase of over 2,800.

4.25 The issue is further highlighted when the makeup of the post-5 year supply is considered. This currently comprises 16 sites in the City compared to 32 in the Shire. The Shire part of the Aberdeen Housing Market area covers a much greater geographic area, so the higher number of sites is not surprising. That said, nearly 70% of the post-5 year effective supply within the Shire comprises only 4 sites with the new Elsick settlement accounting for over 44% of the supply. This suggests an over-reliance on a small number of sites; any difficulties in terms of servicing, could create serious

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problems in maintaining a 5 year supply of effective housing land at all times.

4.26 This difficulty is replicated throughout Aberdeenshire where there is a reliance on single large sites to meet the needs of local communities. The situation is no different in Banchory where there is an almost total reliance on Hill of Banchory to satisfy future housing needs, distorting the growth and physical balance of the town and limiting choice for residents. The issue can only be addressed through the release of further sites capable of delivery in the plan period.

Private Rented Sector Housing

4.27 The Scottish Government Strategy, “A place to Stay, A place to Call Home”, sets out the Government’s vision and strategic aims for the Private Rented Sector (PRS). It requires local authorities to plan for private rented housing in the overall housing supply and for this to be reflected and integrated into local housing strategies.

4.28 Sandlaw Farming Co is offering a range of housing tenures to meet Banchory’s local needs, with the upfront delivery of 300 homes for private rent. Feedback gathered over two consecutive days of public and stakeholder consultation has evidenced considerable support and interest for private rented housing, with a significant number of respondents registering their interest in renting property at Braehead.

4.29 The Scottish Government recognises the requirement to stimulate and manage institutional investment in the PRS, facilitated through a degree of flexibility in planning by local authorities. Unfortunately to date, Aberdeenshire Council has not factored the PRS into the LDP process, nor taken forward any specific proposals which would encourage this sector. Disappointingly, the LDP fails to recognise the Government’s commitment to growing the sector in areas where it meets local demand. This is further evidence that the LDP is not “relevant” as required by SPP and that the site should be considered favourably to meet local authority obligations and to make much needed private rented housing available to local people in Banchory.

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5.0 JUSTIFICATION

Principle of Development

5.1 In early 2013, Aberdeenshire Council indicated its intention to review and update the extant Aberdeenshire Local Development Plan (ALDP) and issued a ‘call for sites’. Accordingly, Ryden LLP submitted a formal development bid to Aberdeenshire Council in April 2013, on behalf of Sandlaw Farming Co promoting the land at Braehead for residential development. Following this, Aberdeenshire Council published its Main Issues Report (MIR) on the ALDP in October 2013. As an ‘Officer’s Preference’ , the MIR failed to identify the land at Braehead (MIR reference MA016) for development. Ryden has made further representation on the MIR and its subsequent Addendum and continues to offer the site through the ongoing ALDP review process.

5.2 Sandlaw Farming Co is committed to a fresh approach to housing that is different from anything previously proposed in Banchory, or, indeed, the wider Aberdeenshire area. This approach will help to meet recent developments in Scottish Government Housing Policy, which are missing from the extant ALDP and its ongoing review process. Ultimately, Sandlaw Farming Co seeks to offer a diverse range of housing tenures to meet identified demand expressed by the local community and to contribute to an effective housing land supply.

5.3 The SDP with which the emerging LDP 2016 is expected to conform is neither up-to-date nor relevant, as it is based on household and population projections carried out in 2008. Where relevant policies in a development plan are out-of-date, the presumption in favour of development that contributes to sustainable development, as advocated by SPP, will be a significant material consideration in determining planning applications. This would dictate favourable consideration of the current proposals.

5.4 As required by SPP, a generous supply of land, sufficient to maintain at least an effective 5 year supply at all times throughout

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the Plan period, cannot be achieved on the basis of the currently allocated sites. The Main Issues Report and subsequent Addendum indicate a degree of complacency on the part of Aberdeenshire Council in failing to allocate additional land or even consider the requirements of the private rented sector.

5.5 The most recent 2012-based household projections, albeit lower than the 2010-based projections, continue to demonstrate a higher requirement than identified in the approved Strategic Development Plan, which itself was based on the 2008 projections. These are now significantly out-dated and the failure of Aberdeenshire Council to take cognisance of the more recent projections is unacceptable and bad practice in the context of the SPP requirement for plans to be “up -to-date and relevant”. Aberdeenshire Council’s plan will be neither.

5.6 Significant reliance is placed on the fact that a post-5 year effective housing land supply of 20,283 homes has been identified in the Aberdeen Housing Market Area. However, to put this in context, if the proportions of effective land are to be the same between the City and Shire as the housing allowances in the Strategic Development Plan, there is a shortfall of over 2,800 homes in the Shire part of the Aberdeen Housing Market Area in the post-5 year supply.

5.7 This shortfall is compounded by the fact that there is an over- reliance on a small number of large sites within the Shire to satisfy housing land supply. To remedy this, additional sites require to be determined for development in the Aberdeen Housing Market Area beyond those identified in Section 5 of the Addendum which, in itself, is an acknowledgement that additional sites are required. The land at Braehead is capable of early delivery and consequently contributing to the effective housing land supply and satisfying an urgent local need.

Affordable Housing and Developer Contributions

5.8 The ALDP sets out requirements for developments of over 5 units to contribute no less than 25% of the total number of units as affordable housing within associated Policy 6 Affordable Housing

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and SG Affordable Housing 1: Affordable Housing, unless otherwise indicated within Schedule 4 of the ALDP. The latter requests on site-affordable contributions of 40% for Banchory, however the new SPP sets a benchmark figure of 25% across the board in Scotland. The Braehead Site would deliver this 25% requirement in accordance with SPP. This would be secured through a Section 75 Legal Agreement to ensure a phased delivery, linked directly to the phasing of the overall development. A total of 25 assisted living units would be provided for Abbeyfield Scotland, which would provide support and care for older people capable of living largely independent lives.

5.9 Sandlaw Farming Co is eager to help to address an acute demand for housing that is accessible for local people. Evidence gathered from public consultation and engagement demonstrates there is significant demand for homes for private rent and for affordable housing within the town. Since the public exhibition was held in August 2014, a total of 64 local people have formally registered their interest in private rented housing at Braehead. People who have grown up in Banchory are finding it increasingly difficult to remain in the area because they simply can’t get access to housing, due to inflated house prices. Local companies are unable to grow as they would like because they cannot attract staff who would be required to find affordable accommodation in the area. Similarly many people approaching retirement age have few opportunities to downsize and would welcome the flexibility of home rental.

5.10 The Scottish Government Strategy “A pl ace to Stay, A Place to Call Home” requires local authorities to plan for private rented housing in the overall housing supply through their respective development plan processes. As detailed on Page 9 of the supporting document, Banchory 2025 (Braehead – sustainable southern growth) document, the Scottish Government also recognises the need to stimulate support and institutional investment in the sector, facilitated through a degree of flexibility in the planning system, to enable private rented housing development in areas where it meets demand. Disappointingly, neither the extant ALDP nor the current ALDP Review has brought forward any proposals for the Private Rented Sector. Braehead

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offers a unique combination of circumstances to deliver private rented homes in Aberdeenshire as Government and financial incentives for the Private Rented Sector will only be available for a limited period.

5.11 Sandlaw Farming Co is fully aware of the ALDP’s requirements for developers to make fair and reasonable contributions based proportionately on the scale and associated impacts of development on public services, facilities and infrastructure. Accordingly, Sandlaw Farming Co is prepared to work closely with the Developer Obligations Team to agree appropriate contributions to mitigate such impacts in line with ALDP Policy 9.

Design/Scale

5.12 Design has responded to key characteristics of the site and in response, the Masterplan has established a number of broad character areas, determining a number of anticipated approaches and identities based on established landscape and topographical features.

5.13 The overall approach at Braehead has been design led, through expert technical analysis from a diverse Project Team, including a robust and interactive consultation strategy with key stakeholders and the surrounding community. The built environment at Braehead would interconnect with a network of streets and spaces in harmony with the established character and context of the surrounding area. Aspects have been drawn from traditional rural to more contemporary planning to create a sustainable and inclusive new development.

5.14 A Design and Access statement, submitted in support of this planning application, considers design principles for Braehead in more detail, adding a complex appraisal and design response to the character areas established within the Masterplan. This application complies with ALDP Policy 8 Layout, siting and design of new development and associated Supplementary Guidance SG LSD1: Masterplanning and SG LSD2: Layout, siting and design of new development.

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Access and Connectivity

5.15 Pedestrians and cyclists are central to the access and connectivity strategy for Braehead given its close proximity to Banchory Town Centre. The development would promote a community that could live and work, without the necessity for daily commuting by car. The intention is to maintain an attractive sense of place and provide a permeable, interconnected hierarchy of streets, for access by both pedestrians and road users in accordance with ALDP Policy 9 Developer Contributions and associated SG Developer Contributions2: Access to New Development, as well as paying full cognisance to ‘Designing Streets’ guidance.

5.16 The site would be designed to accommodate and promote public transport and positive discussions have taken place with local bus operators. Any detailed proposals taken forward for Braehead would be fully compatible and integrated through appropriate connections with Banchory’s existing public transport network.

5.17 In preparation of the PPiP application and associated Masterplan, Project Consultant, Fairhurst, undertook a Transportation Scoping exercise with Aberdeenshire Council. This determined the extent of the study area to be included within a Transportation Assessment (TA). The TA forms detailed analytical assessment and traffic modelling work, looking at immediate and cumulative impacts of the development on the existing and future surrounding road network. The intention is to route the B974 Strachan to Banchory road through the site. The new road would be wider and safer than the current narrow, tightly-curving stretch of roadway past the Falls of Feugh. The new road would be designed to reduce speed and provide bus stops for local services. The layout of the site's foot and cycle pathways would help to reduce carbon footprint and encourage pedestrian and cycle travel to and from the town centre.

5.18 The TA has been based on traffic analysis for a development of 400 houses based on existing peak flows and the resultant impact posed by the Breahead development, in addition to other committed development as agreed at pre-application stage with

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Aberdeenshire Council Roads Development Service. Since initial work began on the TA, planning applications have been lodged concerning the ALDP “M2” site, which has been taken into consideration within the assessment undertaken for the Braehead proposals. The TA identifies potential improvements at the A93 Station Road/ A980 Raemoir Road junction and details a workable strategy which could be implemented through close working with the Council’s Roads Development Service. In order to address potential safety concerns, a scheme is proposed which would control the approach to Bridge of Feugh by traffic signals.

Environmental Issues

5.19 Given the site ’s proximity to the River Dee SAC and Local Nature Conservation site, it was paramount that significant work was undertaken to assess any associated impacts posed by the development on the surrounding environment. The application for PPiP has been fully informed by an EIA of the Braehead site and the likely consequences for all aspects of the environment arising from the proposed development. The identification and assessment of environmental impacts provide information for the developer, local and central government, relative stakeholders and the public to enable comparison of development benefits against any environmental loss. An Environmental Statement informed by the EIA, provides an in depth analysis of:

• Landscape and Visual Impact; • Hydrology and drainage; • Air quality; • Noise impact; • Ecology and Biodiversity; • Archaeology and cultural heritage; • Traffic and transportation; • Recreation and access; • Socio-economic issues; • Light impact

Each of the above issues has been assessed for their impacts at both the construction and operational phases.

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5.20 While any development will inevitably have an impact on the environment, the EIA has assessed any potential significant impacts, considering magnitude, location and sensitivity of the receptor and where impacts are considered to be potentially significant, mitigation has been proposed. The Environmental Statement provides a Schedule of Mitigation and records any residual effects.

Location and Landscape Impact

5.21 The site is located south of the River Dee, approximately 500m from Banchory town centre on the edge of the existing settlement boundary, making this a logical and sustainable choice for the growth of Banchory as evidenced in detail within pages 10-14 of the supporting Vision Document, Banchory 2025. In recent years, Banchory has been expanding to the north east further and further away from the centre of the town, with the most recent allocations (ALDP sites M1 and M2) sprawling some 3km away from the centre. The SNH Landscape Character Assessment No102 “South and central Aberdeenshire” 2008, identifies the site as falling within Character Area 20 of the Straths and Valleys Landscape Type. The area is heavily populated by mature coniferous woodland plantations interspersed with small pockets of development.

5.22 As with any development of a significant scale, there would be a degree of impact on the landscape. However, it is essential to consider whether the degree of change would have a long term detrimental impact on the character of the surrounding area.

5.23 Development at Braehead would optimise the natural landform and visual containment offered by the existing woodland and topography, to comply with best practice and to show consideration for existing local residents and visitors to Scolty Hill. A detailed Landscape and Visual Impact Assessment (LVIA) has been carried out for the site and has fed directly into the Masterplanning process, demonstrating compliance with Policy 12 Landscape conservation and associated SG Landscape1: Landscape character of the ALDP.

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5.24 Out of 17 different viewpoints, which were agreed in principle with the Planning Service at pre-application stage, 11 demonstrate that the site would not be visible at all from these vantage points. The LVIA has also been informed by a Zone of Theoretical Visibility (ZTV) which demonstrates clearly that the site is significantly screened by mature woodland in the context of views from the wider surrounding landscape.

Sustainability

5.25 The application has been supplemented by a Sustainability Statement which details that development at Braehead would make use of low and zero carbon generating technologies to help reduce carbon dioxide emissions. Significant consideration has been given to sustainability at a level appropriate to the Masterplan process and it is anticipated that conditions would be applied to future detailed applications, requiring buildings to comply with the prevailing Building Regulations in relation to carbon saving targets in accordance with ALDP Policy 8 and associated Supplementary Guidance of SG LSD11: Carbon neutrality in new development.

Open Space

5.26 ALDP Policy 8 and associated Supplementary Guidance SG LSD5: Public Open Space states that for major development proposals of 50 dwelling houses or more, it is expected that 40% of the site shall be reserved for open space. The Braehead Masterplan has been designed in accordance with the above SG, which sets out a hierarchy of type, quantity, quality and accessibility of open space provided within the proposed development site. In addition to new areas of open space, Braehead would form logical extensions and connections to the existing green space and woodland areas in all directions, ensuring they maximise biodiversity and ecological opportunities, in accordance with ALDP Policy 11 Natural heritage.

5.27 The Masterplan identifies an approximate area of 8.04Ha reserved for open space, serving a variety of functions, including

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a public park on the sloping north east of the site facing the existing Banchory settlement, There would be a network of paths through existing and proposed woodland, promoting more sustainable methods of transport for pedestrians, cyclists and equestrians. Detailed applications coming forward in the future would be fully informed by associated Masterplans and detailed landscaping plans, which would be expected to be conditional of a grant of consent on the PPiP.

Education and Healthcare

5.28 Sandlaw Farming Co recognises the need to replace the existing Health Centre in Banchory and believes that Braehead offers great opportunity to locate a number of essential health services at a central, accessible location. The site proposed for this is in the north east corner of the development, approximately ½ Km from the town centre, offering ease of access by foot or public transport. The site would offer a much more sustainable location than a replacement facility at Hill of Banchory, over 2 km away from the town centre.

5.29 Discussions have been ongoing with NHS Grampian who welcome consideration of a new replacement facility at Braehead. Sandlaw Farming Co will continue to engage with NHS Grampian and Developer Obligations Team throughout the application process regarding specific on site requirements.

5.30 Sandlaw Farming Co recognises that such a development would have an associated impact on existing primary and secondary school rolls. Appropriate and proportionate contributions would be worked out with the Developer Obligations Team and secured through a S75 legal agreement.

Water/ Waste Water

5.31 Extensive discussions have taken place with Scottish Water, which has confirmed there is existing capacity to the south of Banchory; however, upgrades would be necessary both to the waste and water network. Sandlaw Farming Co would provide sufficient upgrades to allow connection to a new public foul

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drainage system leading into the existing facility to the east of Banchory; this might require some infrastructure upgrades to accommodate the development. Discussion with Scottish Water would ensure that such interventions were carried out timeously to allow phased development to take place. Existing properties adjacent to the site currently relying on private septic tanks, would have the opportunity to connect to the public system.

5.32 Surface water drainage would be by way of SUDs ponds at natural low points within the site and would undergo appropriate levels of treatment before discharge into adjacent watercourses in accordance with SEPA regulations. A full Drainage Impact Assessment (DIA) has been submitted in support of this application. This demonstrates the site can accommodate the proposed housing without increased flood risk or drainage implications. The proposals therefore accord to Policy 9 Developer contributions and more specifically, associated Supplementary Guidance SG Developer Contributions3: Water and waste water drainage infrastructure of the ALDP.

Phasing

5.33 This application for PPiP seeks to secure permission to enable the delivery of 400 homes comprising 300 for private rent, 75 affordable (rent to buy) and 25 for assisted living, served by Abbeyfield Scotland. This would be built within 5 years, equating to 80 houses per annum. However, in view of the high level of demand for private rented and affordable houses in Banchory, we have ensured that we are in a position to progress quickly with the delivery of these homes upon receipt of planning permission.

5.34 The Braehead Masterplan illustrates the conceptual layout and design parameters, demonstrating that the site could comfortably accommodate up to 600 homes. The additional 200 units should be read as a purely indicative approach to cohesive long-term masterplanning for Braehead.

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6.0 CONCLUSIONS

6.1 In order to address current Planning Policy at both national and local levels, considerable work has been undertaken to support this application for Planning Permission in Principle. This is evidenced within the supporting documents as detailed under paragraph 1.7 of this report. Information contained within the supporting documents demonstrates clearly that the site can be accommodated on the surrounding road network and serviced appropriately without causing any detriment to the surrounding environment. The PPiP and Masterplan process has also been subject to extensive public engagement, drawing out constructive and critical feedback, as well as an overriding demand for more accessible housing options for the Banchory community. This has played a fundamental role in shaping the overall proposals for the site.

6.2 A detailed Masterplan has been produced to supplement the application, identifying the key characteristics of the Braehead land and the design concepts utilised to respond to the site ’s context and existing characteristics. An illustrative plan of the conceptual location of development blocks, core areas of open space and an interconnecting network of streets and paths is contained within the Masterplan.

6.3 As set out explicitly within paragraph 4 above, the most recent 2012 based household projections, continue to demonstrate a higher requirement than identified in the approved Strategic Development Plan, which itself was based on the outdated 2008 projections. Failure of Aberdeenshire Council to take cognisance of the more recent projections is unacceptable in the context of the SPP requirement for plans to be “up -to-date and relevant”.

6.3 As a direct result there is an identified shortfall of over 2,800 homes in the Shire part of the Aberdeen Housing Market Area. The Braehead site would not only help Aberdeenshire Council to remedy this shortfall, by contributing to the effective housing land supply, but also would provide much needed homes for private

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rent as advocated within Scottish Government Advice “ A Place to Stay, a Place to Call Home” .

6.4 It is hereby respectfully requested that planning permission is granted for this PPiP application to allow delivery of 400 new homes, including small scale employment uses, to commence development on site. The recently adopted SDP seriously underestimates the housing requirement and to date the LDP Review process has not factored in additional allocations to increase supply. Significant material weight should therefore be applied to SPP, which introduces a ‘presumption in favour of development that contributes to sustainable development’ , and that development plans should be ‘ up-to-date and relevant’ .

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Page 56 Appendix 2 SDPA CONSULTATION RESPONSE ON PLANNING PROPOSAL PLANNING PROPOSAL Local planning authority: Aberdeenshire Council Proposal: Residential Development of 400 No. Dwellinghouses (Including 300 Private Rented, 75 Affordable and 25 Assisted Living Units), Health Centre, Employment Uses, Formation of Deeside Way Hub, Extension to Deeside Way, Realignment and Improvement to the B974, Cycle Paths, Landscaping, Open Space and Ancillary Works Reference No: APP/2015/0225 Date received: 3 February 2015 Case Officer: Jan Regulski Target date: 3 March 2015

STRATEGIC PLANNING OBSERVATIONS Strategic Development Plan The Aberdeen City and Shire Strategic Development Plan (SDP) was approved by Scottish Ministers on 28 March 2014, replacing the Aberdeen City and Shire Structure Plan (2009). The Aberdeenshire Local Development Plan (2012) is less than three years old and Aberdeenshire Council are at an advanced stage with the preparation of their replacement plan. The development plan for Aberdeenshire is therefore fully up-to-date, with a replacement Local Development Plan being well advanced by Aberdeenshire Council to implement the SDP (a Proposed Plan is due to be published for objections next month).

The plan has an ambitious strategy for change, facilitating substantial growth in a limited number of places to deliver the significant infrastructure required to deliver that growth (paras 3.5 and 3.9), while enhancing quality of life. Banchory is not one of those locations identified for substantial growth, but rather falls within a ‘Local Growth and Diversification Area’ within the plan’s spatial strategy. Such areas are required to meet local needs for growth rather than meeting strategic-level growth requirements.

While the tenure of the proposed homes would appear to be generally consistent with the SDP, the aspirations for the site are generally positive, and the density would result in the efficient use of the site, it is the principle of development on an unallocated site and the claim that the SDP is out-of-date that are the focus of this response.

Housing Land Supply The development plan is the most appropriate place to consider the need for new housing and the allocation of specific sites, not applications for planning permission. This is in line with the plan-led system emphasised by Scottish Planning Policy (SPP).

The minimum housing land supply required at all times by SPP is 5 years (SPP, para 110ff). The 10-20% generosity referenced in the SPP applies to allowances (housing land requirement), not the 5-year housing requirement as claimed by the applicant at para 4.21 of the Supporting Statement (SPP para 116). In any event, the supply in the AHMA in the latest Au dit equates to 6.2yrs (or 7.3yrs against the recently approved SDP), more than 20% higher than the 5yr supply requirement.

Reference is made to an analysis of the land supply position by Homes for Scotland (para 4.23). However, in addition to Aberdeenshire Council responding to it when it was submitted as part of their response to the LDP MIR Addendum, the SDPA responded to it when it was submitted to inform a meeting between the SDPA, Homes for Scotland and both councils. The analysis, when ‘corrected’ for errors, did not identify a shortfall of housing land in the Aberdeen Housing Market Area at all in the period to 2026.

Page 57 Appendix 2 The 2014 Housing Land Audit already identifies land for 486 homes in Banchory which are expected to be complete by 2026. If this application were to be approved, the growth rate approved through the development plan would effectively be doubled.

No robust evidence has been presented which suggests that additional housing land is required in the Aberdeen Housing Market Area beyond that already coming forward through the two LDPs. In any event, even if additional land was required, the two LDPs have now reached ‘proposed plan’ stage and that is the most appropriate place for such arguments to be rehearsed. What is clear, however, is that the housing requirement is set in the SDP, as is the scale of allowances required to be allocated in the two LDPs.

Up-to-date Development Plan The SDP, at less than 11 months old, is less than the 5-years old that SPP requires. Banchory is within the Aberdeen Housing Market Area (AHMA) and the 2014 Housing Land Audit identifies a 5-year housing land supply in the AHMA, with evidence suggesting that this will remain the case for many years to come. The statement (Planning Supporting Statement, para 5.3) that the SDP is neither up-to-date nor relevant is not the case and is clearly contradicted by Scottish Planning Policy.

The publication of new household and population projections by the National Records of Scotland (which happens every two years) does not make a plan out-of-date.

The applicant’s Planning Supporting Statement seeks to argue from the basis of population projections that more homes need to be identified. However, it is households which give rise to the need for new homes. The 2011 Census has led to a re-evaluation by the National Records of Scotland of household formation rates in Scotland between the 2010-based projections and the 2012-based projections. Even though the population of the SDP area is expected to rise faster than previously projected, the 2012-based household projections differ very little from those on which the SDP was based.

The Housing Need and Demand Assessment (HNDA) of 2011 was assessed as ‘robust and credible’ by the Scottish Government’s Centre for Housing Market Analysis. The applicant tried to put almost identical arguments to those used in support of this application to the Reporter at the SDP examination. The Reporter at the SDP examination did not accept that the plan was out-of-date or inadequate in terms of providing a solid basis for forward planning. Evidence since January 2014 has tended to confirm the conclusions reached at that time rather than further question them. Household projections (2012-based) have been published which are very similar to those used to inform the SDP and the city region economy has entered a period of turbulence following the significant falls in the price of oil since mid-2014.

The SDP Examination concluded in January 2014 and clearly found that the plan provided adequately for even the higher 2010-based projections published by NRS and that the HNDA is the only place where new projections can be considered, not through objections to plans published at a later date. The link below is to the SDP Examination Report, with pages 69-71 in particular addressing issues of relevance to the application in terms of the up-to-date nature of the SDP. http://www.aberdeencityandshire-sdpa.gov.uk/nmsruntime/saveasdialog.asp?lID=1086&sID=881

Page 58 Appendix 2 OTHER OBSERVATIONS AND POLICY CONCLUSION This application is significantly contrary to the Aberdeen City and Shire Strategic Development Plan (2014), which is up-to-date and relevant to this application. The Housing land supply in the Aberdeen Housing Market Area stands at 6.2 years (or 7.3 years using the up-to-date SDP requirement) and there are significant quantities of land programmed beyond 2018 to ensure that it remains above the 5-year level for many years to come.

Author: David Jennings Date: 17 February 2015

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CONTENTS

1. Introduction ...... 4 1.1. Planning Application ...... 4 1.2. The Applicant and Agent...... 5 1.3. Other Onshore Consents ...... 7 1.4. Supporting Documents and Drawings to this Planning Application ...... 7 1.5. Pre-Application Consultation and Discussions...... 8 1.6. Document Structure ...... 9

2. Site Context...... 10 2.1. Site Location ...... 10 2.2. Land Use - Area Surrounding The Site ...... 10 2.3. Land Use – The Site ...... 10 2.4. Site History ...... 10 2.5. Site Suitability ...... 11 2.6. Socio-Economic Context ...... 12

3. Proposed Development ...... 13 3.1. Summary of the Development Proposals ...... 13 3.2. Project Objectives ...... 13 3.3. Proposal Details ...... 14 3.4. Environmental Impacts ...... 21

4. Project Justification – Policy Context ...... 23 4.1. Need for the Project ...... 23 4.2. Climate Change and the Policy Context ...... 23 4.3. Demonstration Projects ...... 25

5. Meeting National and Global policy Demands ...... 27 5.1. GHG Reduction ...... 27 5.2. Demonstration of Commercially Viable CCS Technology ...... 27 5.3. Decarbonisation of the Energy Sector ...... 27 5.4. Diversification of skills ...... 27

6. Planning Policy Context ...... 28 6.1. Development Management Framework ...... 28

7. Meeting Planning Policy Demands ...... 32 7.1. GHG Emissions Reduction ...... 32

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7.2. Robust Economy ...... 32 7.3. Regeneration of Peterhead Area ...... 32 7.4. Appropriate Development ...... 32

8. Summary and Conclusions ...... 33 8.1. The Need for and Benefits of the Project ...... 33 8.2. Meeting Policy Objectives ...... 33

Annex A - Local Development Plan Policy Compliance ...... 34

FIGURES

Figure 1-1 Location plan ...... 4 Figure 1-2 Onshore application site ...... 6 Figure 1-3 MLWS boundary between onshore and offshore consenting regimes ...... 7 Figure 3-1 Project components ...... 15

TABLES

Table 2-1 Planning history of the site in last 10 years ...... 11 Table 6-1 Energetica framework compliance ...... 30

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Office of Carbon Capture and OCCS ACROYNMS Storage

PAC Pre-Application Consultation CAR Controlled Activities Regulations

PPC Pollution Prevention and Control CC Carbon Capture

SCR Selective Catalytic Reduction CCGT Combined Cycle Gas Turbine

Scottish Environment Protection CCS Carbon Capture and Storage SEPA Agency CLO Community Liaison Officer Scottish Hydro Electric Transmission SHETL Limited CO2 Carbon Dioxide SPA Special Protection Area COMAH Control of Major Accident Hazards SSE SSE Generation Limited Department of Energy and Climate DECC Change WWTP Waste Water Treatment Plant EIA Environmental Impact Assessment

Environmental Resources ERM Management Ltd

ES Environmental Statement

EU European Union

FEED Front End Engineering Design

GHG Greenhouse Gas

HDD Horizontal Directional Drilling

HGV Heavy Goods Vehicle

HIA Health Impact Assessment

HV High Voltage km kilometre(s) kV Kilovolt m Metre(s)

MLWS Mean Low Water Spring

MW Megawatt

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1. INTRODUCTION

1.1. PLANNING APPLICATION Shell U.K. Limited (Shell), with the support of SSE Generation Limited (SSE), is proposing to develop a post- combustion carbon capture and storage (CCS) demonstration project in Aberdeenshire, Scotland (the Project). A carbon capture facility is proposed to be fitted to the existing SSE power station in Peterhead (see Figure 1-1), and the captured carbon compressed and transported offshore by pipeline for storage beneath the North Sea. The Project aims to demonstrate full chain (i.e. carbon capture, compression, transportation and storage) CCS technology at an industrial scale, as well as helping decarbonise the UK’s power sector. The Project consists of three main components:

n Constructing and operating a CO2 capture (known as carbon capture) plant at the existing Peterhead Power Station. The carbon capture plant will capture CO 2, which would otherwise be released to the atmosphere from one of the Power Station’s existing gas turbines. It will then

compress and dry the captured CO 2 in preparation for onward transportation.

n Transporting the CO2 via a combination of new and existing pipelines to the Shell operated Goldeneye platform in the North Sea some 100 km to the north east of Aberdeen. A new direct offshore pipeline, approximately 20 km in length, will tie-in to the existing disused pipeline to the Goldeneye platform that runs from the Shell St. Fergus Gas Terminal north of Peterhead.

n Injecting the CO2 into the depleted Goldeneye gas reservoir for permanent geological storage. The Goldeneye reservoir has the key geological features required for storing CO 2: a body of high quality porous rock overlain and surrounded by layers of impermeable rock, which provide

effective barriers to keep the CO 2 securely contained deep beneath the seabed.

Goldeneye Platform

St Fergus Terminal

Peterhead Power Station

Figure 1-1 Location plan

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This Planning Statement supports a full planning application made to Aberdeenshire Council under the Town and Country Planning (Scotland) Act 1997 covering the onshore aspects of this National Project, identified Scottish National Planning Framework 3 1. The onshore ‘application site’ is shown in Figure 1-2. The offshore elements of the Project fall under the jurisdiction of the UK Department of Energy and Climate Change (DECC) and a separate application has been submitted to DECC 2. Figure 1-3 shows the Mean Low Water Springs (MLWS) which marks the boundary between the separate onshore and offshore consenting regimes.

1.2. THE APPLICANT AND AGENT Peterhead Power Station is owned and operated by SSE. The Project is being led by Shell with support from SSE. The Peterhead Power Station is owned and operated by SSE while the Peterhead CCS Project will be operated by Shell with support from SSE. Shell is the ‘applicant’, and Environmental Resources Management Ltd (ERM) has been appointed by Shell to act as their ‘agent’ to lead the planning application process and undertake the onshore Environmental Impact Assessment (EIA). The applicant’s (Shell’s) contact details are: William Lindsay Project Manager, Peterhead CCS Project Shell U.K. Limited 1 Altens Road Farm, Aberdeen, AB12 3FY Email: [email protected]

The agent’s (ERM’s) contact details are: William Hazell Principal Consultant ERM 23 Albert Street, Aberdeen, AB25 1XX Email: [email protected]

1 Scotland’s Third National Planning Framework, 2013, Scottish Government 2 Available at http://www.shell.co.uk/gbr/environment-society/environment-tpkg/peterhead-ccs-project.html#textwithimage_4

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Figure 1-2 Onshore application site

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Figure 1-3 MLWS boundary between onshore and offshore consenting regimes

1.3. OTHER ONSHORE CONSENTS

1.3.1. Hazardous Substances Consent and Control of Major Accident Hazards An application for a Hazardous Substances Consent will be submitted to Aberdeenshire Council. This application will set out the hazardous substances that will be held on site in order that the Council can assess any land use planning implications. The Project will be considered a top-tier site under the Control of Major Accident Hazards (COMAH) Regulations 1999 (as amended). A Safety Report will be prepared for consideration and acceptance by the Competent Authority (Health and Safety Executive and Scottish Environment Protection Agency) prior to operation of the site.

1.3.2. Pollution Prevention and Control (PPC) and Controlled Activities Regulations (CAR) The Project will require a Pollution Prevention and Control (PPC) 3 and Controlled Activities Regulations permits in order to operate, under the regulation of SEPA. SEPA will be a statutory consultee to the planning application and will make recommendations to Aberdeenshire Council regarding the need and wording of any conditions to be included within any planning permission given. The Project will submit an application for PPC and CAR permits to SEPA after the planning application process has been concluded.

1.3.3. Minute of Agreement with Transport Scotland The Project will enter into a minute of agreement with Transport Scotland following the granting of planning permission at the site. This agreement will contain details of the conditions that Shell will require to adhere to during works underneath the A90(T) adjacent to the substation, on the site junction adjacent to the A90(T) trunk road at Sandford Lodge and the proposed upgrade at the main site A90(T) junction.

1.4. SUPPORTING DOCUMENTS AND DRAWINGS TO THIS PLANNING APPLICATION The Planning Application form is accompanied by this Planning Statement along with the following drawings and documents. n Planning Application Drawings:

3 Pollution Prevention and Control (Scotland) Regulations 2000

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- Site Masterplan; - Site Ownership; - Operational Layout; - Operational Layout – Drainage; - Operational Layout – Landscaping masterplan; - Elevations - Carbon Capture Plant ; - Elevations - Compression Plant and Waste Water Treatment Plant; - Four Section Plans; - Emergency Access Arrangements; - Floor plans for the Carbon Capture Substation, Compressor Substation, Warehouse and Control Building; - Demolition Plan; and - Proposed junction arrangements. n Onshore Environmental Statement (ES) and Non-Technical Summary, this includes a Habitat Regulations Appraisal, Flood Risk Assessment and Traffic Assessment; n Design and Access Statement; n Pre-Application Consultation Report (PAC); n Sustainability Assessment; and n Health Impact Assessment (HIA).

1.5. PRE -A PPLICATION CONSULTATION AND DISCUSSIONS As per the Town and Country Planning (Scotland) Act 1997 as amended by the Planning etc. (Scotland) Act 2006, any proposal falling within the National development category requires pre-application consultation (PAC) to be carried out between the developer and the community prior to the submission of a planning application. In addition to the statutory minimum consultation required to proceed with the planning application at the site Shell has carried out several briefings/feedback sessions with the public and local stakeholders. These sessions gave local people the opportunity to learn about the proposed development and influence the Project design. Full details of the programme of pre-application consultation are provided in the Pre- Application Consultation Report and a summary of the main phases is provided below. Pre-Application public consultation was broken down into three phases.

1.5.1. Phase 1 -Early Dialogue: The primary objective of Phase 1 Stakeholder Engagement, and specifically the Public Exhibitions, was to share early details of the Peterhead CCS Project proposals with the public, in particular the communities in closest proximity to the Station. The public exhibitions were designed to provide members of local communities with an early opportunity to learn about the Project, ask questions of the Project team and provide initial feedback on proposed plans. Six public exhibitions were held in January 2014 and 505 people attended in total. Feedback from the events was generally positive and focussed upon transport impacts, landscape and visual issues and potential benefits to the local community.

1.5.2. Phase 2 - Deeper Dialogue: The second phase of public consultation (Phase 2) was undertaken from July to September 2014. The specific aim of Phase 2 was to offer another opportunity for open dialogue between members of the public,

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wider stakeholders and the Project team and in particular to provide an update on how design and planning proposals were progressing approximately halfway through the Front End Engineering and Design work. This consultation also responded to the feedback received during Phase 1. Two public exhibitions, four site tours and a stakeholder briefing were held and 198 people attended in total.

1.5.3. Phase 3 – Statutory Pre-Application Consultation Phase 3 formed the basis for the required statutory element of public consultation required for the project. Detailed project plans were shared as they neared completion alongside information on environmental impacts identified and mitigation proposed. Public exhibitions in Boddam and Peterhead were attended by 86 people. The key and topics discussed included traffic management, potential cumulative impacts of other projects, local accommodation capacity and community benefits. Briefings were also held with two local community Councils and with a group of key local and regional stakeholders.

1.5.4. Ongoing dialogue In order to allow for continuity of engagement and the development of a two-way relationship between the project and local communities, opportunities for ongoing dialogue were provided. These included regular communication with the communities, through mail drops, a project website, meetings with key community groups and a dedicated project email address. An important element of this ongoing dialogue was the Community Liaison Officer (CLO) for the project, based in Peterhead. A dedicated CLO joined the project team in October 2013 on a part-time basis and was based at The Hot Spot in Peterhead two days each week, Thursday and Friday. The CLO was available to meet with people who had questions about or feedback in relation to the project and arranged meetings with other members of the project team, as appropriate.

1.6. DOCUMENT STRUCTURE This remainder of this document is structured as follows. n Chapter 2: Site Context – description of the application site and its land use context. n Chapter 3: Proposed Development – description of the Peterhead Project and predicted environmental impacts. n Chapter 4: Project Justification, Policy Context – discussion of government and industry drivers for the Project. n Chapter 5: Meeting National and Global Policy Demands – discussion of the compliance of the Peterhead Project in relation to policy n Chapter 6: Planning Policy Context – discussion of the development management context of the site and material considerations n Chapter 7: Meeting Planning Policy Demands - discussion of the compliance of the Peterhead Project in relation to planning policy n Chapter 8: Summary and Conclusions

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2. SITE CONTEXT

2.1. SITE LOCATION Peterhead Power Station is located in Aberdeenshire, on the north east coast of Scotland, between the settlements of Peterhead and Boddam (See Figure 1-1). Aberdeen is the nearest city, located approximately 50 km to the south. The A90(T), which forms part of the Scottish trunk road network, is the main road in the area and runs north/south to the west of the Power Station adjacent to the site boundary. The site entrance for the Power Station is directly off this road. There are various individual residential properties around the Power Station boundary (see Figure 2-5 of the ES).

2.2. LAND USE - AREA SURROUNDING THE SITE The area surrounding the application site is predominantly farm land. Boddam is adjacent to the southern boundary of the site and is a residential community with a population of 1,274. To the west of the site are scattered residential properties. To the north of the redline boundary is Newmill of Sandford, a residential property. To the east of the Power Station is a coastal Right of Way GB207 (RoW) from Boddam to Peterhead. Peterhead Harbour and Boddam Harbour lie to the north and south of Peterhead Power Station respectively. To the south of the site is the Buchan Ness to Collieston Coast Special Protection Area (SPA) which is a European designation for the protection of nesting seabirds. A 2 km extension area to the SPA covers the marine area to the east of the Power Station. This is designated to protect the seabed, water column and sea surface for the use of designated seabird species for loafing, feeding and courtship.

2.3. LAND USE – THE SITE The land within the redline boundary is predominantly grassland which is tenanted for agricultural use, with areas of hedgerows and tree plantation along with car parking and compound areas. It has been confirmed with Aberdeenshire Council that no trees within the site boundary are subject to Tree Protection Orders. The Power Station site has a history of industrial uses dating back to 1973 when construction for Peterhead Power Station began. To the north of the Power Station site is Sandford Lodge, a Category B 4 listed building, the Category B listed Burnside farm steading and the Category C listed Sandford Lodge walled garden. These buildings are within the Project redline and have an existing access from the A90(T). The land to the south and north of the site is currently tenanted for grazing. To the west of the Power Station, over the A90(T), is an existing SHETL substation which the Project will connect to.

2.4. SITE HISTORY The history of planning permissions of the application site over the last 10 years is summarised in Table 2- 1.

4 Listing is the recognition through the Planning (Listed Buildings and Conservation Areas) (Scotland) Act 1997 that a building or structure is of ‘special’ interest. Historic Scotland lists buildings on behalf of Scottish Ministers.

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Table 2-1 Planning history of the site in last 10 years

REFERENCE DATE OF DESCRIPTION DECISION COMMENT DECISION

APP/2006/3038 14 Jun 2007 Erection of 550MW Combined External This application was for Cycle Gas Tur bine (CCGT) Decision- a new power station and Power Station Fuelled by a Granted carbon capture facility on Hydrogen Rich Fuel Stream, land adjacent to the Associated Buildings, Plant and Power Station site and 2 No. 90 m High Gas Turbine land within the Peterhead Stacks for Generation of Power Station site. This Carbon Free Electricity for project was not National Transmission System constructed due to and Formation of Emergency funding restrictions. Access Road from High way (A90 Trunk Road)

APP/2007/0132 N/A (submitted Storage of Hazardous Application Not applicable as on 15 Jan Substances For De-carbonised Withdrawn application withdrawn. 2007) Fuel Project Power Generation Plant

APP/2007/2211 15 Oct 2007 Erection of Workshop and Application This application was for Waste Management Building Approved the construction of extra facilities at the Power Station site.

APP/2010/4073 18 Mar 2011 Alterations to dwelling house Applic ation This application was for (removal of rear extensions and Approved works to the listed outhouses) building on site ‘Sandford Lodge’

APP/2014/1437 13 Jun 2014 Formation of new 400kV Application This application is for a electricity substation (including Approved new substation adjacent 4 no. buildings housing to the existing SHETL switchgear and transformers) substation. and associated infrastructure

2.5. SITE SUITABILITY Peterhead Power Station is an ideal location for a CCS demonstration project. The existing Power Station site has land availability, the necessary supply of exhaust gas for the post combustion CCS process and direct access to the North Sea. Furthermore, Shell’s proposals are consistent with the site’s historical land uses as shown in Table 2-1. The area adjacent to Peterhead Power Station area has previously been granted planning permission for carbon capture technology using Peterhead Power Station facilities (APP/2006/3038) as part of the De- carbonised Fuels 1 ‘DF1’ project in June 2 007. The previous CCS project was proposed by BP and SSE and included pre-combustion carbon capture technology; however it was never developed.

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2.6. SOCIO -E CONOMIC CONTEXT The Data Zones which together comprise the local study area (i.e. those that make up the towns of Peterhead and Boddam, and the Project Data Zone) had a combined population of 20,646 in 2011. Of these, 75 % were aged 16-74 (i.e. classified as being of working age). Residents are principally employed in sectors relating to mining and quarrying; manufacturing; wholesale and retail trade, repair of motor vehicles and motorcycles; and human health and social work activities. Peterhead Power Station is located in Data Zone S01000481 and is also characterised by higher proportions of residents employed in agriculture, farming and fishing, mining and quarrying and professional, scientific and technical activities than the local study area. 90 % of residents of the Data Zone in which Peterhead Power Station is located consider their health to be good or very good, compared with 85 % and 86 % for Aberdeen City and Aberdeenshire respectively.

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3. PROPOSED DEVELOPMENT

3.1. SUMMARY OF THE DEVELOPMENT PROPOSALS

The Peterhead CCS Project aims to capture around one million tonnes of CO 2 per annum, over a period of 10 to 15 years, from an existing combined cycle gas turbine located at SSE’s Peterhead Power Station in

Aberdeenshire, Scotland. The Project will use post-combustion CCS technology. This means the CO 2 will be captured after the fossil fuel (in this case natural gas) is burnt to generate electricity. The captured CO 2 will then be compressed and transported approximately 100 km offshore via a combination of new and existing pipelines to the Shell-operated Goldeneye platform in the central North Sea. Once at the platform the CO 2 will be injected into the Goldeneye CO 2 Store (a depleted hydrocarbon gas reservoir), more than 2 km under the seabed of the North Sea. Figure 3-1 shows the Project schematically, it consists of three main components as follows:

n Constructing and operating a CO2 capture plant at the existing Peterhead Power Station;

n Transporting the CO2 via a combination of new and existing pipelines to the Shell operated Goldeneye platform in the North Sea;

n Injecting the CO2 into the depleted Goldeneye gas reservoir for geological storage. As noted in Section 1.1, the planning application, and this Planning Statement covers the onshore elements only (see Figure 1-3).

3.2. PROJECT OBJECTIVES The Project has four key objectives: 1. Creating a world first and regional landmark – the first full-scale CCS project installed at a gas- fired power station. The Peterhead CCS project would be the first full scale CCS project in the UK and the first full scale gas CCS Project in the world. It would place Scotland at the heart of the technologies development and provide a key landmark within Aberdeenshire for a centre of CCS innovation. 2. Maximising the use of existing infrastructure – the development of a post carbon capture plant at

Peterhead takes advantage of an existing Power Station site with close proximity to offshore CO 2 storage. Developing the Project extends the life of the existing infrastructure at the Power Station and the Goldeneye field. 3. Supporting the local economy and regeneration – the development of the Project within the region would support an area marked for regeneration under the ‘Energetica’ masterplan vision of the area 5. Project operation would result in 20 to 30 new full time jobs at the Power Station and construction would result in a peak of 600 workers over a 36 month construction period, contributing to businesses in the local area. 4. Enable Scotland and the UK to lead the way on climate change – the development of successful full-scale demonstration of carbon capture contributes to the reduction of greenhouse gas (GHG) in the atmosphere responding to legislative climate change policies (see Section 4.2). It also presents an opportunity for other existing Power Stations to replicate and contribute to GHG reduction across the UK.

5 http://www.energetica.uk.com/ accessed 12 February 2015

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3.3. PROPOSAL DETAILS The layout of the various project elements is shown in Figure 3-1 the following text describes the main function of these elements and their dimensions. Detailed information of their functions can be found in Chapter 2 of the ES. All structures will be composed of either concrete, steel or composite material, detailed description of materials will be confirmed at a later date with the local planning authority.

3.3.1. Carbon Capture Plant The carbon capture plant is part of the process which removes the carbon dioxide from the flue gas, using an amine solvent. It is a multi-stage process and includes a number of stages post capture to allow the amines solution to be reused in the process.

The carbon capture plant is made up of a range of piping and ducting with three large structures, the CO 2 absorber and the CO 2 regeneration tower and a substation.

1. The CO 2 Absorber is the most prominent feature within the Project and consists of a 73 m high tower, this feature allows for the CO 2 to be extracted from the flue gas.

2. The CO 2 regeneration tower is a piece of equipment which then removes amine from the CO 2. The regeneration tower is approximately 47 m high. 3. The Carbon Capture substation is one of two substations constructed by the Project.

3.3.2. Compression and Conditioning Plant

The compression and conditioning plant is the part of the process which treats the captured CO 2 so that it is in an appropriate condition for transport and injection offshore. This is a multi-stage process and is electrically powered. The design of the project includes a full enclosure called a compressor shelter, with permanent ventilation, to mitigate noise emissions. The compressor shelter is approximately 30 m long by 20 m wide and 15 m high. Adjacent to the compressor shelter will be the compressor pipe rack which is 8 m high and adjacent to this will be the compressor substation which is 39 m long by 27 m wide and 9 m high.

3.3.3. Offshore Pipeline

Following compression, conditioning and metering onshore, the CO 2 will be piped directly offshore via a combination of new and existing 20" carbon steel pipeline. A section of 15-26 km pipeline will be installed from the Power Station and tie-in to the existing Goldeneye to St Fergus export pipeline for transport to the Goldeneye reservoir for storage as shown in Figure 2-1 of the ES. Within the ES, consideration has been given to the pipeline from the metering point to the MLWS. Consent for the offshore pipeline, from MLWS to Goldeneye, is determined by DECC. Associated impacts beyond MLWS are set out in the Project Offshore Environmental Statement (Volume 2).The pipeline from the metering point to the offshore launch point will be laid subsurface using a traditional trenching process. From the offshore launch point two possible construction techniques have been identified to take the pipeline from onshore to offshore, horizontal directional drilling (HDD) or open trenching. The routes for both are shown in Figure 2-10 of the ES. Further information on both techniques can be found in Chapter 2 of the ES.

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Figure 3-1 Project components

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3.3.4. Associated Infrastructure

3.3.4.1. Waste Water Treatment Plant (WWTP) To minimise trucking waste long distances offsite during operations a WWTP will be constructed adjacent to the compression plant. The WWTP will be made up of a series of tanks. The waste water treatment plant area will be approximately 80 m long by 60 m wide and 8 m high. Adjacent to the WWTP will be the waste wash water tank which is 15 m high. Treated effluent will be discharged to the sea.

3.3.4.2. Fresh Amine and Lean Amine Tanks Two tanks, with associated pipework, will be constructed for fresh amine and lean amine storage. The lean amine tank will be 22 m high and the fresh amine tank will be 13 m high. Both tanks will have a diameter of 10 m.

3.3.4.3. Office/ Control Building and Associated Welfare Facilities A new control building will be provided for the Project. This will be 43 m long by 13 m wide and 5 m high located to the west of the capture plant.

3.3.4.4. Warehouse/Workshop Building A new workshop/warehouse will be constructed adjacent to the existing gas turbine station. This will be used to store equipment and to carry out any mechanical or electrical works. The building will be 28 m long by 16 m wide and 10 m high.

3.3.4.5. Demineralised and Potable Water Supply Potable water for drinking water supply, supplying emergency showers, plant offices, toilets etc. will be provided as an extension to the existing Power Station supply.

3.3.4.6. Power Supply and substations The capture plant will require a high voltage (132kv) grid connection from the existing substation to the west of the A90(T). This will be laid sub surface by open cut trenching. Should it be technically feasible, Horizontal Directional Drilling (HDD) will be used under the A90(T) to avoid disruption to the trunk road. If not feasible, open cut trenching will be used, the same process that was implemented during the SSE repowering project in 2000.

3.3.4.7. Drainage Works Modification will be required to the existing site drainage to accommodate the new structures and building. The current surface water run-off arrangement, which discharges to sea, to the south east of the Power Station, will be continued. However, the new carbon capture plant drainage system will be upgraded, in accordance with requirements for the Control of Major Accident Hazards (COMAH) at the site, to allow the drainage system to be closed.

3.3.4.8. Junction Modifications With a view to improving road safety and site access a right hand turning lane will be constructed at the existing access to the site. There is adequate space to accommodate the minimum 3 m wide through lanes and an approximate 3.5 m wide turning lane within the existing kerb lines. This will require reconfiguration of road markings.

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It is proposed that the existing 40 mph speed limit, which currently ceases approximately 200 m to the south of the junction, is extended through the junction and up to the end of the proposed new tapered road markings to the north of the junction; an extension of approximately 300 m. The potential to adopt the speed limit on either a permanent or temporary basis (during construction phase only) will be appraised by Transport Scotland. The central island is proposed to be remodelled. This will incorporate a 2 m wide central reservation to be used by pedestrians and cyclists crossing the access. To further increase the conspicuousness of pedestrians and cyclists at the junction, it is proposed that a new lighting column be installed within the remodelled island.

3.3.4.9. Other Infrastructure The Project will include modifications to the existing Power Station including the construction of flue gas infrastructure, a steam turbine and selective catalytic reduction (SCR) system, modifications to the steam and water systems associated with the Heat Recovery Steam Generator, ammonia tanks, replacement auxiliary boilers and cooling water pipework.

3.3.4.10. Sandford Lodge Access A second access road is required to the north of the site. This will require the upgrade of the existing Sandford Lodge access road and junction with the A90(T). During construction this will be used to support the onshore section of the pipeline construction. The access will then be maintained into the future to provide an alternative access.

3.3.5. Construction The following sections set out the details of the construction of the onshore Project. Further details on the stages of the project can be found in Chapter 2 of the ES. The construction of all onshore elements of the project is expected to take up to three years (36 months) from 2016 to 2019. The three year programme includes the following aspects. n Site enabling works – preparing and setting up construction compounds, concrete batching plant, access roads and installing temporary boilers and demolition works. n Earthworks/ site preparation – excavation, earthworks and ground stability works to the main construction areas. n Civil works – physical construction of the Project elements. n Mechanical works – installation of mechanical elements and equipment such as pumps, fans and pipework. n Electrical and Instrumentation works – installation of electrical infrastructure including substations and cabling. n Commissioning Works – cleaning and testing of the Project prior to full start up.

3.3.5.1. Construction Hours Construction works will typically be undertaken between the hours of 07:00 and 19:00, Monday to Friday and 07:00 to 13:00 on Saturdays. There will be periods during the construction programme where 24 hours working and Sunday working will be required e.g. when constructing the concrete absorber tower. These periods of working will be notified to the Local Planning Authority in advance and communicated to local residents.

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3.3.5.2. Construction Compounds There will be four construction compounds on site; one to the south, one to the north, one directly south of Sandford Lodge and a small HV cabling working area west of the A90(T). Each compound will be stripped of topsoil and surface vegetation cleared. Soil will be stored onsite, e.g. in bunds around the construction compound. A suitable hard core aggregate surface will then be laid across the compound. The laydown and storage area to the north will require additional earthworks to create a suitably level area. This will be done using material from within the site boundary. All compounds will have suitable surface water drainage installed. This is likely to connect to the existing site drainage and be discharged to sea. Wash down and fuelling areas will have separate drainage networks with retention facilities for sediment separation and/or oil inceptors prior to discharge. Upon completion of construction, compounds will be restored back to existing soil quality and land uses.

3.3.5.3. Traffic Vehicles will access the site at one of two points: n The current main access to the existing power plant, off the A90(T), which will be improved with the addition of a right hand turning lane. n The current junction to Sandford Lodge off the A90(T), which will be modified and the existing access road improved. The construction of the plant will generate additional traffic through the transport of waste and materials to and from the site and the transport of site personnel. Additional traffic will be concentrated on the A90(T).

3.3.5.4. Rights of Ways HDD is the preferred technique to lay the export pipeline at the landfall. If HDD is technically feasible then the coastal Right of Way (GB207) will be unaffected apart from a short period to install the cooling water outfall. Should an open cut technique be required then the Right of Way will require temporary closure and re-routing for up to nine months. Right of Way GB208 will require a short diversion around the northern construction compound. This will extend the length of the route by 230 m for a period of up to three years.

3.3.5.5. Employment Throughout the 36 month construction period there is estimated to be an average construction workforce of approximately 400 people, with a peak workforce of approximately 600 people. Whilst the project is intent on maximising the local content and employment opportunities, it is currently anticipated up to 80 % of this work force, could be itinerant workers. These workers would require accommodation during the construction period. The project will not have an accommodation camp. It is anticipated that the project will use local accommodation providers within the surrounding area (up to 1 hour ’s travel time) and provide suitable transport for workers to get to and from the site. Impacts associated with the construction workforce are assessed in Chapter 14, Socio-Economic and Community and Chapter 5, Traffic, Transport and Access.

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3.3.6. Operation

3.3.6.1. Lighting During operation, there will be lighting of the Project. Shell has a policy of maximising the use of LED lighting from an energy efficiency perspective. Escape lighting will be provided along the designated escape routes and supplied from the substation emergency generator supported switchgear.

3.3.6.2. Landscaping Visual screening will be used where appropriate. Landscaping features for the Project also include stone entrance walling, feature mounding along the Power Station frontage, and woodland planting in close association with the mounding. In addition, opportunities to improve community facilities will be implemented including improvements to the existing raised viewpoint and the coastal path; improvements to the viewpoint including an interpretation board and seats and the provision of litter bins at the viewpoint car park. Further information on the landscaping at the Project site can be found within the Project Landscape Masterplan (Figure 12-6 of the ES).

3.3.6.3. Operational Hours The site will operate, as normal, on a 24 hour basis, seven days a week.

3.3.6.4. Traffic and Access The principal site entrance will be the improved existing entrance to the Power Station. The operation of the Project will require deliveries of materials to site, removal of waste and staff movements. This is estimated to result in up to 30 tanker/HGV movements (15 tankers/HGVs) a week, 10 HGV movements (5 HGVs) and 60 light vehicle movements (30 light vehicles) a day. There will be peak periods, e.g. amine delivery, when up to 80 HGV movements (40 HGVs) could occur in one 24 hour period. There are not expected to be any Abnormal Indivisible Load Movements as part of normal operations. During operation, a separate car park will be designated within the existing site infrastructure for the Project operational staff. For further information on traffic and access during operation please refer to Chapter 5 of the ES.

3.3.6.5. Employment The operation of the Project will require an additional 20-30 staff to those currently employed at the Power Station.

3.3.6.6. Emergency Access and Controls The Peterhead Project site has two Muster Points and a Temporary Refuge. Muster Point 1 is located within the main car park (next to Admin building) and Muster Point 2 is located near to the outside Security Gatehouse. The Project control building is also considered a temporary refuge. The Project site is well connected to the public road via the A90(T). From the A90(T), Emergency services have access to two internal roads (main site access and secondary site access) leading to both of the muster points and Temporary Refuge. In the event of an emergency, ambulance and other emergency services will be able to arrive to muster points/ Temporary Refuges and evacuate the personnel without any significant problem.

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Within the Project site an alarm and detection system of warning and alert shall be provided to enable all personnel to be made aware of the existence of an emergency situation or event. The coverage of detection systems is based on a philosophy of single detectors giving rise to alarms and multiple detectors being required for a “confirmed” detection and any executive action. Detectors are specified according to the type of incident (fire or gas release) anticipated. Alarms will be both audible and visual, with flashing beacons provided in high noise areas of the plant, particularly near pumps and in the CO 2 compression area.

3.3.7. Decommissioning The decommissioning of the Project would be undertaken in accordance with the legislative regime at the time. It is currently anticipated that at the end of the 15 year design life the Project will either be extended, under the necessary approvals or safely taken out of operation. It is not expected that the physical plant will be decommissioned until such time as there is a specific commercial need at the Power Station, or the overall Power Station is decommissioned.

3.4. ENVIRONMENTAL IMPACTS A summary of the environmental impacts associated with the project is presented below with full details available in the ES.

3.4.1. Construction Throughout the construction stage, the significant impacts identified within the ES relate to construction noise, landscape and visual and pedestrian amenity.

3.4.1.1. Construction Noise Impacts during daytime works are predicted to be Minor or below at all noise sensitive receptors. The following activities will require construction works to continue at night. n Construction of the absorber and Direct Contact Cooler Structures; n Offshore trenching (only required should the open cut option be taken forward for the export pipeline); and n Offshore pipelaying and rock dumping (only required should the open cut option be taken forward for the export pipeline). These activities are predicted to result in Minor to Moderate impacts at five residential properties. Mitigation measures are being examined to reduce the level of these predicted impacts.

3.4.1.2. Landscape and Visual During construction large tall construction components such as cranes will have an impact on some viewpoints within the area, specifically the users of the coastal path and residential properties within Boddam. The magnitude of this impact will vary with distance and ground level. At night, construction lighting will also be perceptible in addition to current Peterhead Power Station security lighting. Mitigation measures including the minimisation of ground and vegetation clearance along with tidy maintenance of construction compounds will be implemented. Construction lighting will also be limited outside required working hours.

3.4.1.3. Severance During construction Right of Way GB207 will be temporarily closed for two weeks during works to the cooling water outfall. Should an open cut technique be required rather than the preferred option of HDD,

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the RoW will require closure for up to nine months which will result in a moderate impact. Local residents will be notified of the temporary closure of the Right of Way prior to closure. Pedestrians will be rerouted using clear instructions and the paths will be reinstated. For the purposes of the EIA, it is assumed the decommissioning impacts of the Project would be similar to those identified for construction.

3.4.2. Operation The introduction of new large structures within the grounds of the existing Peterhead Power Station will result in several viewpoints being impacted. The Project will include a number of large elements such as the carbon capture plant including the CO 2 Absorber approximately 73 m high, the CO 2 regeneration tower at approximately 47 m and carbon capture substation. The compressor shelter surrounding compression and conditioning plant will also be 30 m high with an adjacent substation. Due to the height of certain elements of the Project, visual screening with vegetation will in some cases not be possible and is unlikely to mitigate any potential landscape and visual effects. During operation the following visual receptors will experience significant impacts: n Sea View Road/View Gardens, Boddam; n property opposite Gatehouse on A90(T) (Millbank Cottage); and n Newton.

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4. PROJECT JUSTIFICATION – POLICY CONTEXT

4.1. NEED FOR THE PROJECT This Section details the Government drivers for the development of CCS and its importance for energy production in the future in the UK. It also details the technological principles of carbon capture, the previous demonstration projects which have been initiated in the UK and abroad and the requirement for further demonstration of the technology.

4.2. CLIMATE CHANGE AND THE POLICY CONTEXT The global climate change debate developed in the scientific community in the early 19 th century with research into rising global atmospheric temperatures. Subsequent testing, analysis and modelling in the

1950s revealed an intrinsic link between CO 2 and atmospheric temperature rise. This link led to an increased focus on emission sources and atmospheric coping capacities resulting in the development of international policies for emission control and regulation. CO 2 is commonly referred to as a GHG.

4.2.1. International and Governmental Agreement In 1992 194 countries, including the UK, joined an international treaty, the United Nations Framework Convention on Climate Change, to consider ways to combat global warming. In 1997 the treaty developed the Kyoto Protocol 6 which was adopted in 2005 and which legally binds developed countries (including the UK) to emission reduction targets. It sets targets for 37 industrialised countries with the overall target amounting to an average of 5 % emission reduction against 1990 levels over a five-year period 2008-2012. In 2005, in reaction to the targets set by the Kyoto Protocol the European Union (EU) launched the EU Emissions Trading Scheme (EU ETS) 7. This involves governments of the EU Member States (including the UK) agreeing on national emission caps which have to be approved by the EU commission. These countries then allocate allowances to their industrial operators, and track and validate the actual emissions in accordance with the relevant assigned amount. In addition the EU also: n “as signatories of the Kyoto Protocol collectively agreed to reduce GHG by 8 % between 2008 and 2012. The UK’s share of this collective target is an emissions reduction of 12.5 %; and n in 2007 they agreed to cut GHG emissions by 20 % by 2020. ”

4.2.2. UK Policy

Energy s upply is the biggest single contributor to the UK’s CO 2 emissions. The overall contribution of the energy supply sector to UK emissions in 2013 was 33 %, with emissions reducing from 2012 to 2013, due to a change in the fuel mix used at power stations for electricity generation and a decrease in total fuel used for electricity generation 8. In total, in 2013, power stations accounted for just over a quarter of all UK GHG emissions.

6 http://unfccc.int/kyoto_protocol/items/2830.php 7 http://ec.europa.eu/clima/policies/ets/index_en.htm 8 2013 UK greenhouse gas emissions: final figures https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/400394/final_emissions_statistics_final.pdf

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In the UK, the 2007 Energy White Paper 9 covers aspects of climate change and regulation across the UK. The paper highlights the need for demonstration projects using CCS technology and stresses that funding is required to encourage the technologies’ development. The paper states that “ Successful demonstration of CCS would be a major contribution by the UK to global efforts to tackle climate change” (P15, P4). The 2011 Electricity Market Reform Paper 2011 10 builds on this statement by noting that all new power stations will be built carbon capture ready and investment should focus on low carbon generation technology such as CCS. The Overarching National Policy Statement for Energy (NPS EN-1) 2011 and The Carbon Plan 2011 11 state that in order to develop CCS technology reducing cost and risk it must be demonstrated at a commercial scale with the 2011 Carbon Plan noting that “ exact phasing of the low carbon transition is uncertain and depends on investment choices by industry as well as international action and competition ”. UK Government policy on CCS is driven by the DECC Office of Carbon Capture and Storage (OCCS), which is tasked with facilitating the delivery of CCS in the UK. To encourage CCS development in the UK a CCS Roadmap was published in April 2012 which included the CCS Commercialisation programme. The competition is aimed at driving down costs by supporting practical experience in the design, construction and operation of commercial scale CCS. The £1bn capital funding was made available to a selection of four full chain (capture, transport and storage) projects shortlisted in October 2012. In March 2013 the government announced two preferred bidders, the White Rose Project and the Peterhead Project, who were then awarded contracts to undertake Front End Engineering and Design (FEED) studies.

4.2.3. Scottish Policy

4.2.3.1. Climate Change (Scotland) Act 2009

The Climate Change (Scotland) Act 2009 sets targets for the Scottish Government to reduce CO 2 emissions by 42 % by 2020 and meet the UK target of an 80% reduction by 2050 (compared to the baselines in 1990). One of the key Scottish Government long-term outcomes required to meet the Scottish climate change targets is: n A largely decarbonised electricity generation sector by 2030, using renewable energy complemented by fossil fuels with carbon capture and storage.

4.2.3.2. Carbon Capture and Storage – A Roadmap for Scotland In March 2010 the Scottish Government Energy Markets Unit published a report on Carbon Capture and Storage – A Roadmap for Scotland 12 (updated in May 2011 to report progress to date) which stated the Government’s vision for CCS in Scotland: “For Scotland to become a leader in the demonstration and deployment of CCS technology, utilising the advantages and strengths that Scotland possess and ensuring that the experience and knowledge gained as a result, can be shared to the benefit of Scottish-based firms, academics and others. Specifically we want to see a number of CCS demonstration projects being developed in Scotland alongside the development of ancillary and support services for CCS and an appreciable share of the global CCS business” P7,P3. The report also reaffirmed the Scottish Government’s current position on CCS, which largely mirrors the UK Government’s position (P7): n “At least 300 MW of CCS demonstration is now required on new build coal plant or existing plant retrofitted with supercritical boilers;

9http://webarchive.nationalarchives.gov.uk/20121205174605/http:/www.decc.gov.uk/assets/decc/publications/white_paper_07/ file39387.pdf 10 https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/48129/2176-emr-white-paper.pdf 11https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/47613/3702-the-carbon-plan-delivering-our-low-carbon- future.pdf 12 http://www.scotland.gov.uk/Resource/Doc/306380/0096201.pdf

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n The Scottish Government will adopt the same 'rolling review' process being followed by the UK Government, which will result in a CCS status (technical, economics, environmental and safety) report being issued in 2018; and n If all the appropriate tests are passed, then CCS would be judged viable, leading to a requirement for all new build coal plants from 2020 to be fitted with 100% CCS from the outset, as well as retrofitting full CCS to those coal plants built between now and 2018 ”. The report sets out a series of key objectives underlying the headline ambition statement. Those of particular relevance include the following (P15). n “The Scottish Government wants Scotland to be at the forefront of the development and deployment of CCS technologies at a global level by further developing CCS as a sector of key economic importance, based on the development and diversification of existing engineering and other skills developed in sectors such as oil and gas exploration and power generation. n Scotland seeks to gain this position through delivering successful demonstration projects in carbon storage.

n The Scottish Government wants the North Sea to be seen as Europe's principal CO 2 storage hub - working in partnership with neighbouring European Governments - bringing new investment and a long term future for offshore industries as hydrocarbon production eventually declines ”.

4.3. DEMONSTRATION PROJECTS National policy notes the need to confirm carbon capture as a process to decarbonise the energy sector. The technology must be tested through the use of full scale demonstration projects reducing replication costs and risks. No full scale demonstration projects have been developed in the UK. However, small scale demonstrations have been initiated. The UK's first ever carbon capture and storage (CCS) unit was proposed at Longannet Power Station in 2009. In the consortium, Scottish Power was responsible for retrofitting post combustion carbon capture and compression at Longannet, National Grid Carbon was responsible for onshore transport and compression at St Fergus and Shell was responsible for offshore transport and storage. The Project was shelved in 2011 due to funding difficulties.

Cansolv Technologies Incorporated (CTI) (part of the Shell Group) and RWE have constructed and operated a pilot carbon capture facility at Aberthaw Power Station in South Wales. The post-combustion process is designed to capture 50t CO 2 per day from this coal fired plant. Following first capture of CO 2 in January 2013 a programme of plant familiarization, optimization and operation was undertaken up until May 2014. This programme has improved the understanding of the performance of the process as well as the practical implications of operating the technology in conjunction with normal power plant operations.

The Ferrybridge Carbon Capture Pilot, undertaken by a consortium of Doosan Babcock, SSE and Vattenfall was launched in 2011 as a collaborative project between Government and industry. The project tested post combustion capture technology at the existing Ferrybridge Power Station in Yorkshire. The test programme ran for two years during 2012 and 2013 to develop performance models. The 100 tonne

CO 2/day pilot plant was the first of its size to be integrated into a live power plant in the UK.

“Results of the project demonstrated a 90% CO 2 capture at 100 tonne CO 2 capture per day on MEA and 13 up to 120 tonne CO 2 capture per day ” Following on from this project, Vattenfall has qualified for European funding to build and operate a large- scale demonstration plant based on post combustion technology at Jänschwalde, Germany. The Project in

13 https://sequestration.mit.edu/tools/projects/GHGT-12%20paper/Ferrybridge_CCSPilot100.pdf

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Germany will involve the development of a CCS plant 10 times the scale of Ferrybridge planned to be in operation in 2015 14 . Carbon capture technology has been the subject of tests worldwide but, as noted above, no full scale demonstration projects have been completed within the UK. However in Canada, The Boundary Dam in Saskatchewan has now been developed (opened in 2014) which is the world's first major power plant CCS scheme. Owned by Canadian utility firm SaskPower it captures 90 % of the emissions from a 110MW coal unit that has been retrofitted with CCS technology. The project captures 1 million tons of carbon dioxide annually from the Power Station's chimney, which is 15 % of the Power Station's total emissions. Also in Canada, the Quest CCS project is a fully integrated CCS project being developed on behalf of the Athabasca Oil Sands Project (AOSP) with Shell Canada Energy as the project Operator. The AOSP produces bitumen. The bitumen is transported by pipeline to the Scotford Upgrader near Edmonton, Alberta, where it is turned into synthetic crude oil.

The CO 2 capture infrastructure will involve process modification to the existing Scotford Upgrader. The capture facilities consist of three amine absorption towers, an amine regeneration unit, a multistage CO 2 compressor and a dehydration unit.

The Quest CCS project will have the capacity to capture just over 1 Mtpa of CO 2 and will result in a 35 % reduction of CO 2 emissions from the Scotford Upgrader. Capture and injection of CO 2 is expected to commence in 2015. The development of the Peterhead Power Station CCS Project would become the first full scale CCS development in the UK capturing 90 % of emissions from the plant and the first full scale gas CCS development in the world.

14 http://www.vattenfall.com/en/ccs/ferrybridge.htm

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5. MEETING NATIONAL AND GLOBAL POLICY DEMANDS

Taking into account the relevant energy and CCS policy at global and national scales it is, clear the Peterhead Project contains a range of objectives that align with global and national policy demands.

5.1. GHG REDUCTION Global policy focuses on GHG emission reduction to meet set global targets. An objective of the Peterhead CCS Project is to assist in Scotland and the UK leading the way on the tacking of climate change. The

Project would contribute to a reduction of GHG emissions by capturing one million tonnes of CO 2 per annum, for 10 - 15 years, from one of the existing gas turbines.

5.2. DEMONSTRATION OF COMMERCIALLY VIABLE CCS TECHNOLOGY The Peterhead Project has been granted government funding to proceed with FEED to develop CCS technology at the site. The Project supports the national policy demand for demonstration of practical experience in the design, construction and operation of commercial scale CCS. Development of the project would assist in reducing commercial risk of CCS development and increasing the replicability of CCS technology.

5.3. DECARBONISATION OF THE ENERGY SECTOR National Policy (UK and Scottish) focuses on the decarbonisation of the electricity sector. The energy sector is the biggest single contributor to CO 2 emissions and although emissions are reducing, policy makes it clear further reductions are required. As noted in Section 4.3, there are no full scale operational CCS projects within the UK. The Peterhead Project would assist in the demonstration and use of CCS technology to work towards the decarbonisation of the electricity sector, assisting in meeting CO 2 emission targets. As the Project is demonstrating the use of retrofit CCS technology at an existing power station, the potential is created for the technology to be used more widely throughout the UK and globally at other existing power stations.

5.4. DIVERSIFICATION OF SKILLS CCS technology has been noted within Scottish Policy as a sector of key economic importance. Development of the Peterhead Project would result in the diversification of existing engineering and other skills developed in sectors such as oil and gas exploration and power generation in the local region and throughout Scotland.

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6. PLANNING POLICY CONTEXT

This Section considers the project in the context of the statutory development plan along with other Supplementary Planning Guidance and the Energetica Corridor.

6.1. DEVELOPMENT MANAGEMENT FRAMEWORK

6.1.1. National Planning Policy Scottish national planning policy sets out the G overnment’s view on plan ning and provides both the policy context for development plans and guidance on their interpretation, and is material to decisions on planning applications. The National Planning Framework 3 (NPF3), published in July 2014, sets out the Government’s expectations for the planning system and is material to both the justification for, and the determination of, all planning proposals in Scotland. NPF3 lists CCS development at Peterhead as a national development. The NPF3 has the ambition to achieve at least an 80 % reduction in GHG emissions by 2050 and it states Peterhead has a nationally significant role to play in delivering this spatial strategy. Peterhead is listed as an energy hub within the plan, part of a national CCS Network. The NPF3 states: “The conversion of Peterhead gas-fired Power Station can pioneer CCS technology and make best use of existing infrastructure, including existing pipelines, and help to establish the area as a hub for CO 2 transport and storage ”( NPF3, P33) 15 . The Scottish Government aim is to demonstrate that CCS is feasible at a commercial scale by 2020 with the development at Peterhead establishing Scotland as a centre of expertise in CCS technology, maintaining energy security and diversifying the energy mix. The plan notes that there is scope for the CCS sector in Scotland to generate significant employment and business opportunities.

6.1.2. Regional Development Plan Policy The Aberdeen City and Shire Strategic Development Plan 2014 and Aberdeenshire Local Development Plan 2012 form the current statutory development plan for the area.

6.1.2.1. Aberdeen City and Shire Strategic Development Plan March 2014 The Aberdeen City and Shire Strategic Development Plan 2014 details the vision for the future development of the North East for the next 20 years. Among others, the plan specifically details the following aims: n A robust economy; and n The tackling of climate change.

To achieve these it acknowledges that the city region needs to take the lead in reducing the amount of CO 2 released into the atmosphere and adapt to the effects of climate change limiting the amount of non- renewable resources used. The plan states that CCS has significant potential to reduce GHG emissions from conventional power stations and help the change to a low-carbon future. It notes the region is able to play a key role in the use of this technology, building on expertise, existing infrastructure and locational advantages to potential storage sites.

15 http://www.scotland.gov.uk/Publications/2014/06/3539

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The Aberdeen City and Shire Strategic Development Plan 2014 notes: “The technology [CCS] has huge global-market potential over the period of this plan and beyond. The Power Station at Peterhead offers an ideal opportunity to demonstrate the technology and significant storage potential that lies in old oil and gas reservoirs under the North Sea, with St Fergus the established gateway to this potential. ” 16

6.1.3. Local Development Plan Policy

6.1.3.1. Aberdeenshire Local Development Plan 2012 The Aberdeenshire Local Development Plan 2012 sets out the “ground rules “ for the development of land in Aberdeenshire. Like the Aberdeen City and Shire Strategic Development Plan, it states some of its key aims are to grow and diversify the economy and take on the challenges of sustainable development and climate change. Within the Local Development Proposal Map Peterhead Power Station site and substation site west of the A90(T) are covered by an area marked for priority regeneration (Policies 1 and 10) and land reserved for community use (Policy 8). Supplementary settlement statements 17 also reveal that the site is covered by policies P6-8 which safeguard the use of the Peterhead Power Station site and R1 which reserves the site for development associated to Peterhead Power Station. The Project complies with all policies contained within the Local Development Plan. A detailed matrix of compliance is contained within Annex A of this document. In summary, eight policies are related to the Peterhead Project development and each policy supports the proposals detailed for the site. Policy 1 regards the sustainable development of business and employment within the region. The Peterhead project would generate employment through construction and operation and provide an opportunity to develop new technology in the region developing new skills in the area. A related policy is Policy 10 which discusses the requirement for all development to be sited within appropriate designated areas. The Peterhead Project is situated within an area marked for regeneration and within the “Energetica Corridor”. The Project will result in, as stated above, the generation of jobs throughout construction and operation. The Project will also contribute to the regeneration of the area and production of quality development through the compliance and use of the Energetica principles and master plan. Design of the Project has concentrated on safety, access and sustainability with extensive public consultation as per Policy 8. The Project is located within an area safeguarded for Peterhead Power Station expansion and does not encroach on any other safeguarded land, complying with Policy 14. Policies 11, 12 and 13 discuss the requirement of development to take into consideration impacts upon natural heritage, landscape conservation and the historic environment. Compliance of the Project against these topics is discussed within the supporting planning application ES. A cumulative chapter is also included within the ES to discuss any possible cumulative impacts on receptors. The accompanying design and access statement also contains detailed description of the landscaping measures and design of the site.

16 http://www.aberdeencityandshire-sdpa.gov.uk/nmsruntime/saveasdialog.asp?lID=1111&sID=946 17 Aberdeenshire Local Development Plan 2012 Supplementary Guidance Volume E Settlement Statements Buchan

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6.1.4. Other Material Considerations

6.1.4.1. Energetica placemaking supplementary guidance 2011 The Project is within the Energetica Corridor which stretches for 50 km from the Bridge of Don, in Aberdeen, to Peterhead and includes the area west to Aberdeen Airport. The Energetica Corridor is a vision created by a partnership between Aberdeenshire Council Aberdeen City Council and Scottish Enterprise which encourages the transformation of the corridor into a quality lifestyle, leisure and business location. Development within the corridor is covered by a framework which sets out the aspirations of the area and within the corridor it is noted that: “Development must make a contribution to the quality of life, environmental performance and economic development targets. The aim is to create a technology lifestyle community with innovative transport links showcasing the latest low carbon technologies ”.

6.1.4.2. Energetica placemaking supplementary guidance 2011, P2 18 The Energetica framework has six key requirements for all new development, the compliance of the Project with relevant Energetica aims is considered in Table 6-1. Further details on Project design and Energetica compliance can be found in the Design and Access Statement.

Table 6-1 Energetica framework compliance

ENERGETICA AIM COMPLIANCE

Demonstration, through a range of mixes and uses, and design of structures, Compliant. that innovation and experimentation have been employed in the pursuit of the The development will result in the generation of a highest levels of economic, social, and environmental sustainability. CCS skills base in Scotland and a reduction in CO 2 emissions benefiting the economic, social and Environmental goals of the area.

The Project planning application is also accompanied by a Design and Access Statement. This document details the design of the development taking into account the maste rplan of the area.

Demonstration that the energy performance has been carefully considered in Compliant. the design process to result in buildings and layouts which have exemplary The Project planning application is accompanied by energy performance or introduce innovation in this regard. a Design and Access Statement. This document detailing the design of the development taking into account the Energetica Masterplan of the area.

Buildings demonstrate future -proofing through flexibility in their desi gn to allow Compliant. for easy extension or conversion to other uses over the full life -span of the The Project planning application extends the life of building . the existing Peterhead Power Station by the use of post combustion carbon capture.

Demonstr ation that the layout and design of buildings promotes the creation of Not Applicable social hubs, civic spaces, streets as places, and active frontages within developments .

Demonstration that the implementation of open space requirements emphasise Not Applicable

18 http://www.energetica.uk.com/uploads/placemaking_sg.pdf

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ENERGETICA AIM COMPLIANCE the aspiration for active lifestyles within the corridor .

There is a commitment to the provision of high quality landscaping which Compliant. contributes to a unified sense of p lace within the framework area. The planning application is accompanied by a landscape masterplan for the Project which details the provision of landscaping associated with the Project . Please refer to Chapter 12.

6.1.4.3. Peterhead Southern Gateway Environmental Improvement Masterplan As part of the Energetica strategy for the area the local authority have commissioned a masterplan for the area, Peterhead Southern Gateway Environmental Improvement Masterplan. The masterplan provides developers with proposals for an enhanced environmental framework for new development in the area, to help attract new investment and encourage economic diversification. Within the masterplan it notes that there is an opportunity to improve the setting of the Peterhead Power Station and the approach to the town of Peterhead, an aspect which this project will contribute to through the creation of an advanced landscape masterplan of the site including stone entrance wall features, feature mounding along the Power Station frontage, and woodland planting in close association with the mounding see Chapter 12 of the ES.

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7. MEETING PLANNING POLICY DEMANDS

Taking into account the relevant national, regional and local planning policy it is clear the Peterhead Project contains a range of objectives and development principles that align with policy demand.

7.1. GHG EMISSIONS REDUCTION Regional and local policy highlights that climate change is a key focus for the area. They identify the need to develop projects which take into account climate change and the possibility of the use of CCS technology to combat powerstation emissions. A key objective of the Peterhead Project is to reduce carbon emissions, therefore contributing to climate change focuses and assisting with the reduction of GHG emissions as per policy demands.

7.2. ROBUST ECONOMY A key component of national, regional and local plans is the generation of employment and the creation of a robust economy. The Peterhead project would result in noticeable innovation in the area and employ workers throughout construction and operation. The Project would also contribute to the maintaining of a robust economy through the diversification of skills in the national and local area.

7.3. REGENERATION OF PETERHEAD AREA Within the Local Development Plan of the area a key component of relevant policies covering the Project site is the need for regeneration. The Peterhead Project will result in development within an area marked for regeneration. The Project will apply the Energetic framework 19 key principles to the design and will contribute to the improvement of the Peterhead Power Station setting creating a feature gateway and associated feature planting.

7.4. APPROPRIATE DEVELOPMENT The Peterhead Power Station site is identified within the National Plan as a site for which CCS development should be implemented in order to achieve global and national climate change policy requirements. This statement is echoed within the Strategic Development Plan for the region which identifies the current infrastructure at Peterhead as ideal for CCS development. The local plan also safeguards the area surrounding the Power Station for Power Station expansion and marks the area as key for regeneration. The Peterhead Project therefore complies with spatial planning policy for the area and the objectives of the project clearly align with policy demands.

19 http://www.energetica.uk.com/ accessed 12 February 2015

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PETERHEAD CCS PROJECT PLANNING STATEMENT

8. SUMMARY AND CONCLUSIONS

8.1. THE NEED FOR AND BENEFITS OF THE PROJECT The value of developing full scale demonstration of CCS within the UK, to contribute towards the nation’s commitment to climate change policies is recognised by the Government. Currently the UK energy sector is a major contributor to GHG emissions and over a quarter of emissions are a result of power station operations. Over and above the decarbonsation of energy supply, the Project will deliver a number of wide ranging objectives which will enable the local planning authority `to deliver strategic policy aspirations, namely: n Utilising appropriate safe guarded land; n Supporting the economy and regeneration; and n Delivering quality landscaping as proposed in the Energetica Masterplan.

8.2. MEETING POLICY OBJECTIVES The Project meets a number of stringent policy tests, namely: n It provides an effective solution to reduce carbon emissions from an existing Power Station; n Measures can be taken to reduce damage or disturbance to the environment to acceptable levels; n It diversifies the current energy provision technology providing opportunities to become a worldwide leader in CCS technology; n It is of overriding significance for regeneration, employment and economy in the local area; and n CCS development at Peterhead would take advantage of the existing siting of infrastructure, prolonging it’s lifespan The planning system seeks to balance competing policy themes to understand whether a proposal accords with the national policy framework and statutory development plan when taken as a whole. The applicant ’s view is that the overall balance between potential environmental effects and the strategic need for the development in terms of demonstration of replicable post-combustion CCS technology, alongside the longer term regeneration benefits in the local area, strongly rests in favour of planning permission being granted.

33 Page 95 Appendix 3

PETERHEAD CCS PROJECT PLANNING STATEMENT

ANNEX A - LOCAL DEVELOPMENT PLAN POLICY COMPLIANCE

ABERDEENSHIRE LOCAL DEVELOPMENT PLAN 2012

POLICY SUMMARY OF POLICY COMPLIANCE DISCUSSION

Policy 1 Business Aberdeenshire Council will support the development of Compliant. development business and sustainable economic growth in all areas The Project is located within the Energetica Corridor by taking account of the economic benefits of and a regeneration area. The Project will involve the proposed development when we make decisions in generation of employment through construction and development management. We will give particular operation. The Project also involves the opportunity to priority to business development within the develop new technology in the region developing new regeneration areas and the area covered by the skills in the area. ‘Energetica’ framework.

Policy 2 Town centres Aberdeenshire Council will support retail, commercial, Not Applicable – development is not proposed in the and retailing and other proposals appropriate to the scale and town centre or related to retail. function of urban areas. This support will apply particularly to proposals in town centres, and shops designed to serve a local neighbourhood. Where proposals are made outwith town centres, it will be necessary to demonstrate that a sequential approach to site selection has been followed and that there will be no significant adverse effect on the vitality and viability of existing town centres. Aberdeenshire Council will also support shops which will act as a new or support an existing tourist destination, and which will make a contribution to the development of the area with no significant adverse effect on.

Policy 3 Development Aberdeenshire Council will support development in the Not Applicable – development is not classified as in the countryside where it meets the needs of a rural being within countryside designated land. community by contributing to its overall social and countryside economic wellbeing, and by promoting vigorous and prosperous rural settlements. We will balance this with the need to promote a sustainable settlement pattern and to protect our rural environment from the impact of longer distance travel to use services, especially commuting. As a result, we will manage development in a way that recognises the special character of different types of rural area. We will generally exercise greater control of development in the Aberdeen Housing Market Area, and promote small -scale development, especially business development, in the Rural Housing Market Area.

In doing so, we will support a wide range of economic development that helps to improve the rural economy.

Policy 4 Special types Aberdeenshire Council will protect the special Not Applicable – development is not classified as of rural land character of the greenbelt and the coastal zone. In being within rural land. these areas we will have special controls on development. These include a presumption against development that would erode the special nature of these different areas. The following types of development may be acceptable in appropriate circumstances in the greenbelt: extensions or ancillary uses; development for the purposes of agriculture, forestry, horticulture, nature conservation, essential

34 Page 96 Appendix 3

PETERHEAD CCS PROJECT PLANNING STATEMENT

ABERDEENSHIRE LOCAL DEVELOPMENT PLAN 2012

POLICY SUMMARY OF POLICY COMPLIANCE DISCUSSION

public infrastructure, or recreation; the restoration, conservation or extension of vernacular buildings or buildings of architectural merit; accommodation required for a worker in a primary industry; development identified as a national priori ty; or development identified under the policy for safeguarding of resources and areas of search as required to meet established need. The detailed circumstances in which development in both the coastal zone and greenbelt may be acceptable is set out in the following supplementary guidance

Policy 5 Housing land Aberdeenshire Council will support the development of Not Applicable – development does not involve the supply housing in line with the spatial strategy of the structure supply of housing. pla n and as set out in part 4 “The spatial strategy” of this document. At all times we will maintain a five -year supply of land for housing that is effective. If a sevenyear supply cannot be maintained, we will draw down extra land from future allocations (20 17- 2023), to ensure we can maintain a five -year effective housing land supply and deliver the spatial strategy.

Policy 6 Affordable Providing affordable housing is an important Not Applicable – development does not involve the housing consideration in the planning system. Government supply of housing. policy and advice confirm that the development plan is

an appropriate way in which we may provide affordable housing in areas where there is a demonstrable need. A Housing Need and Demand Assessment has clearly established that there is a need for affordable housing in Aberdeenshire. While we will not meet all of this need using the planning system, it is appropriate that the development industry should make a contribution to providing affordable housing.

Aberdeenshire Council will support development that helps to meet the needs of the whole community. We will do this by providing levels and types of affordable housing that are appropriate to the area, as justified and addressed in the current Housing Need and Demand Assessment, the Local Housing Strategy and our Affordable Housing Outcome Statement. To help us meet the need for affordable housing in Aberdeenshire, new housing development must contain 25% affordable houses, unless we say otherwise in schedule 4 or in supplementary guidance.

Policy 7 Other special Aberdeenshire Council will support special needs Not Applicable – development does not involve the housing needs housing in settlements, which takes account of the supply of housing. different needs for this kind of housing, respects the character and amenity of the surrounding area, and, where appropriate, is accessible to community facilities and services.

Policy 8 Layout, siting Aberdeenshire Council will support new development Compliant and design of new on sites we have allocated within this plan, where they The Project is located within the designated area of conform with a previously agreed development

35 Page 97 Appendix 3

PETERHEAD CCS PROJECT PLANNING STATEMENT

ABERDEENSHIRE LOCAL DEVELOPMENT PLAN 2012

POLICY SUMMARY OF POLICY COMPLIANCE DISCUSSION development framework and/or masterplan (whichever is regeneration and an area safeguarded for Power appropriate) for the site. We will assess all Station development. It is also located within the development, whether on sites we have allocated or Energetica Corridor which contains a separate elsewhere, using a process that includes appropriate masterplan vision of the area. The Project will comply public consultation and appropriate standards for with the land use allocations of the Local Development design, open space, accessibility, safety, sustainability, Plan by providing regeneration of the area using and the provision of assoc iated services. existing power station infrastructure. The Project will also take into account the requirements regarding layout, design, access, sustainability and safety highlighted within the Energetica Masterplan – please see the Design and Access Statement for further details.

Policy 9 Developer Aberdeenshire Council will support development, if the Complaint contributions developer makes a reasonable contribution, in cash or The applicant will provide appropriate contributions to in kind, to public services, facilities and infrastructure the local area as per discussions with local authority and the mitigation of negative effects on the representatives and consultation with the local environment, that fairly and reasonably relates in scale community. and kind to the proposed development, and is necessary to make the proposed development acceptable in planning terms.

Policy 10 Enabling Aberdeenshire Council will support enabling Compliant development development proposals, subject to other policies, on The development would result in regeneration within a sites which have not specifically been identified for designated area and will actively support strategic development in the plan’s settlement maps in the policies such as the Energetica Corridor. following circumstances: 1) where it is the only way of retaining a listed building; or 2) where it is the only means of enabling the start -up of an employment, leisure or tourism activity within a regeneration priority area or, in exceptional cases, within a rural area (as defined in the proposals map s).

In all cases, we will only approve this kind of enabling mechanism if the public benefit from its use decisively outweighs the disadvantages of breaking the normal policy presumptions of the plan.

Policy 11 Natural Aberdeenshire Council will improve and protect Compliant. heritage designated nature conservation sites and the wider The Project planning application is accompanied by an biodiversity and geodiversity of the area. Where there Environmental Statement which reports on the is uncertainty over the impacts of a proposed assessment of the possible environmental impacts of development, we will adopt an approach based on the the Project and develops appropriate mitigation if precautionary principle. We will also consider required. The environmental statement also contains a cumulative impacts of development on the natural cumulative development chapter which assesses any environment and will only accept harm to the possible cumulative impacts associated with the environment where there is an overriding public Project. interest.

Policy 12 Landscape Aberdeenshire Council will plan for and promote the Compliant. conservation improvement and protection of all landscapes in The Project planning application is accompanied by an Aberdeenshire by recognising and using landscape Environmental Statement which contains a landscape character areas. All the landscapes of Aberdeenshire and visual assessment. This assessment takes into are valuable assets and vulnerable resources, which account the landscape character areas relevant to the are facing various pressures of change. We will use project. A design and access statement also the Landscape Character Area framework as a basis accompanies the application detailing the design of the for our future planning and management policy. We development taking into account the masterplan of the will also take into consideration particular area. opportunities, sensitivities and vulnerabilities of different landscapes, and make sure that the

36 Page 98 Appendix 3

PETERHEAD CCS PROJECT PLANNING STATEMENT

ABERDEENSHIRE LOCAL DEVELOPMENT PLAN 2012

POLICY SUMMARY OF POLICY COMPLIANCE DISCUSSION

implications of development on these are managed in an appropriate and sensitive way.

Policy 13 Protecting, Aberdeenshire Council supports the protection, Compliant. improving and improvement and conservation of the historic The Project planning application is accompanied by an conserving the environment. There will be a presumption against Environmental Statement which contains a cultural historic environment development that would have a negative effect on the heritage chapter which takes into account the impact quality of these historic assets. Different parts of the the Project could have on the historic environment. historic environment require to be subject to specific guidance and controls to make sure that we maintain and improve their value.

Policy 14 Aberdeenshire Council will not support developments Compliant Safeguarding of that sterilise, degrade or otherwise make unavailable The development will enable the Peterhead Power resources and areas key strategic resources, including the water Station site to adapt to climate change and of search environment, important mineral deposits, prime regeneration requirements. The development will not agricultural land, open space, trees and woodlands. encroach on safeguarded land other than land which Other key strategic resources include sites that may is designated as to be used for power station reasonably be required in the future for the delivery of expansion/adaptation. transportation improvements, waste facilities or energy generation, including the ability of Peterhead Power Station to adapt and expand.

We have identified areas of search to help the development industry to locate major waste, minerals and energy -generating facilities in appropriate places, taking account of opportunities, constraints and the settlement strategy of the plan.

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Page 100 Appendix 4 SDPA CONSULTATION RESPONSE ON PLANNING PROPOSAL PLANNING PROPOSAL Local Planning Authority: Aberdeenshire Council Proposal: Construction and Operation of a Carbon Capture, Compression and Conditioning Plant including associated infrastructure (Control room, power supply and substations, access road, workshop, drainage, waste water treatment plant, absorber & regeneration towers, storage tanks, plant and machinery), electricity cables, landscaping and CO 2 export pipeline. Reference No: APP/2015/0903 Date received: 27 March 2015 Case Officer: Victoria Moore Target date: 17 April 2015

STRATEGIC PLANNING OBSERVATIONS Strategic Development Plan The Aberdeen City and Shire Strategic Development Plan (SDP) was approved by Scottish Ministers on 28 March 2014, replacing the Aberdeen City and Shire Structure Plan (2009).

The Plan’s vision is that “Aberdeen City and Shire will be an even more attractive, prosperous and sustainable European city region and an excellent place to live, visit and do business”. It recognises the need to take confident and courageous decisions and lead the way in dealing with the urgent challenges of climate change.

The plan recognises the need to deal with energy demand as well as supply-side issues, with reducing emissions of climate change gases from existing power stations being a key part of the jigsaw (paras 4.7-4.9). The potentially significant role of the area in the provision of infrastructure is highlighted as well as the potential economic benefits of developing world-leading expertise in this area.

The plan makes five references to carbon capture and storage (CCS) (para 3.28, page 17, para 4.10, Figure 7 (p29) and Schedule 2 (p44)), recognising that the Peterhead proposal has the potential to make use of existing infrastructure, help to deliver significant emissions reductions from an existing power station and provide a potentially significant competitive advantage in this emerging technology.

At the time the SDP was prepared, it was anticipated that the CO 2 would be pumped from Peterhead onshore to St Fergus before going offshore. However, the current proposal is to take the CO 2 offshore at Peterhead and connect into the existing offshore pipeline between St Fergus and the Goldeneye field 20km offshore. Although the original proposal would have facilitated the development of St Fergus as a CO 2 hub, the current application does not preclude that happening in the future through other CCS proposals.

Although preparatory work has been done by the SDPA and partners, the preparation of supplementary guidance highlighted in para 3.29 of the SDP has not been taken forward at the current time. This is due to the uncertainty around the electricity grid upgrades which had been planned in the vicinity of the electricity substation west of the A90 at Peterhead. Although this may be taken forward in the future, this does not impact on the determination of the current application.

When considering a development proposal, it is important that the plan is read as a whole (para 1.9). The planning authority will need to satisfy itself that environmental impacts and risks of this proposal have been appropriately mitigated.

Page 101 Appendix 4 National Planning Framework 3 (2014) The Scottish Government published National Planning Framework 3 (NPF3) in June 2014. It sets out a long-term strategy for Scotland, it is the spatial expression of the Government Economic Strategy and the Scottish Government’s plans for development and investment in infrastructure. NPF3 identifies national developments and other strategically important development opportunities in Scotland. Its vision is for a Scotland which is: x a successful, sustainable place; x a low carbon place; x a natural, resilient place; and x a connected place.

NPF3 identifies a ‘Carbon Capture and Storage Network’ as a national development (ND3, p72), with both carbon emissions and economic potential being the two driving forces behind its development. The potential of Peterhead and carbon capture in general is also highlighted throughout the document (p19, p29, para 3.10, para 3.19, para 3.34, para 3.41, p63, p68, p72, p82).

Peterhead is also identified as an energy hub and an area for coordinated action, an area with a nationally significant role to play in delivering NPF3’s spatial strategy. CCS is one element of this, along with the deep water port, its potential future role in electricity transmission and its location at the northern end of the Energetica corridor.

National Marine Plan (2015) The Scottish Government published the National Marine Plan in late March 2015. The plan makes reference to the potential of CCS, positively supporting its deployment in Scotland. Chapter 10 of the plan focuses on carbon capture and storage and supports the principle of the commercialisation project at Peterhead.

The National Marine Plan also addresses the issue of alignment between marine and terrestrial planning, with more detail set out in a Planning Circular. The Marine Acts require that public authorities must take any authorisation (or enforcement) decisions which affect or may affect the marine environment in accordance with the National Marine Plan unless relevant considerations indicate otherwise. This has important implications for the determination of the current application which, in accordance with the Planning Acts, must also be made in accordance with the development plan unless material considerations indicate otherwise.

OTHER OBSERVATIONS AND POLICY CONCLUSION This application is in line with the aspirations of the Aberdeen City and Shire Strategic Development Plan (2014), and is one of the proposals outlined within it. Officers have been working with the applicant over several years and the submission of the application at this time is welcome. It is hoped that a funding deal can be agreed with the UK Government over the next few months to enable this development to be implemented on the ground by the end of the decade and that the wider economic potential of the development for the Aberdeen City and Shire economy can be maximised.

This response is submitted subject to ratification by the Aberdeen City and Shire SDPA on 24 April 2015, its first meeting since the application was submitted.

Author: David Jennings Date: 13 April 2015

Page 102 Agenda Item 7

ABERDEEN CITY & SHIRE STRATEGIC DEVELOPMENT PLANNING AUTHORITY

Date: 24 April 2015

Title : SDPA Budget Monitoring position as at 28 February 2015

1 Purpose of Report

1.1 The purpose of this report is for the Strategic Development Planning Authority (SDPA) to note the budget monitoring and forecast position for 2014/15 as at 28 February 2015.

2 Background

2.1 The budget for the SDPA was considered at the meeting on 12 March 2014.

3 Proposal

3.1 The budget monitoring report and forecast outturn is attached as Appendix 1 to this report for Members ’ consideration.

3.2 The Authority will note that expenditure is low for the year to date, which is mainly due to a staff vacancy.

3.3 The post of Senior Planner is currently vacant and despite going through the recruitment process, no suitable candidates applied, so the post will not be filled in this financial year.

3.4 The forecast for the Other Income has been reduced to nil, as it is anticipated that the contributions from the partner Council’s in the year will be sufficient to cover all expenditure.

4 Recommendations

4.1 It is recommended that the Authority:

a) notes the budget monitoring position and forecast outturn as at 28 February 2015.

Alan Wood Treasurer 05 March 2015

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Page 104 Appendix 1

REVISED ACTUAL REVISED ACTUAL BUDGET TO FORECAST NOTES 2013/14 2014/15 28-Feb-2015 % 2014/15 £'000 £'000 £'000 £'000

Staff Costs 1 Salaries & Wages 74 86 49 56.6% 53 1 2 Superannuation 14 16 7 43.8% 8 3 National Insurance 6 7 5 64.7% 5 4 Other Staff Costs 0 0 0 0.0% 0 94 109 60 55.3% 66

Premises Costs 5 Other Property Costs 3 6 0 0.0% 2 3 6 0 0.0% 2

Administration Costs 6 Printing, Stationery & Postages 1 10 5 54.0% 8 7 Telephone Costs 0 1 0 10.8% 1 8 Course Expenses 0 2 1 26.5% 2 9 Advertising & Promotions 3 4 7 179.7% 10 10 Other Administration Costs 4 1 1 52.9% 4 8 18 14 76.4% 25

Transport Costs 11 Travel & Subsistence 2 2 1 47.8% 2 2 2 1 47.8% 2

Supplies & Services 12 Purchase of Equipment 0 1 0 0.0% 1 13 Purchase of Materials 0 1 0 0.0% 1 14 Other Supplies & Services 1 2 0 1.9% 2 15 Consultant Fees 0 5 8 160.0% 10 16 Work Done by Outside Contractor 62 30 5 17.0% 25 63 39 13 33.7% 39

Gross Expenditure 170 174 88 50.6% 134

Income 17 Aberdeen City Council (85) (69) (52) 75.0% (67) 18 Aberdeenshire Council (85) (69) (52) 75.0% (67) 19 Other Income 0 (36) (0) 0.0% 0 2

Total Income (170) (174) (104) 59.5% (134)

Net Expenditure 0 0 (15) 0.0% 0

Notes: 1. The Budget for Salaries & Wages of £86k is for a Manager and Senior Planner. Recruitment was unsuccessful for the vacant post of Senior Planner and will not be filled this financial year, so the forecast for Staff Costs has been reduced. 2. The Other Income of £36k which was budgeted to be released from the reserves held since the inception of the Authority is not expected to be needed, since the contributions from the partner Council's will be sufficient to cover the forecasted expenditure for the year.

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Page 106 Agenda Item 8

SDPA Bulletin – April 2015

1 Employment Land Audit 2014

1.1 The Aberdeen City and Shire Employment Land Audit is published annually and has a base date of 1 April each year. The purpose of the Audit is to provide up- to-date and accurate information on the supply and availability of employment land in the area. It is prepared by the two councils in consultation with Scottish Enterprise, the SDPA and the private sector. The 2014 Audit is now complete and is attached at Appendix 1 for information.

1.2 The Audit demonstrates the availability of a significant quantity of employment land across the area, with an ‘established ’ supply of 839Ha, of which 500Ha is classed as ‘marketable’ 1 (140Ha in Aberdeen City and 360Ha in Aberdeenshire). All but 97Ha of the marketable land is within the strategic development plan’s ‘Strategic Growth Areas’.

1.3 The current marketable supply of 500Ha compares to a supply of 300Ha or less before the two local development plans were adopted in 2012, thereby implementing the growth strategy of the structure plan and subsequent strategic development plan.

1.4 The Aberdeen City and Shire Strategic Development Plan (2014) targets at least 60Ha of marketable employment land within strategic growth areas in both Aberdeen City and Aberdeenshire. These targets are comfortably exceeded in both areas at the current time.

1.5 Take-up rates for employment land were high in 2013/14, especially in Aberdeen City (16.97Ha) which exceeded the take-up in Aberdeenshire (14.08Ha) for the first time in recent years. Total take-up (31.95Ha) was only just short of the peak take-up over the past decade of 33.1Ha. In addition to this, there was a further 44Ha under construction on 1 April 2014.

1.6 Market conditions are likely to have changed considerably since the base date of the Audit and this will be picked up in next year’s publication. The 2015 Audit will be carried out and reported to a future meeting of the SDPA.

2 Ministerial changes in the Scottish Government

2.1 It was reported in the December 2014 SDPA Bulletin that, following the election of a new First Minister and the subsequent reshuffle, there is now new Ministerial responsible for planning.

1 Marketable Land = land that meets business requirements, has secure planning status, can be serviced within 5 years and is accessible by walking, cycling and public transport. It excludes land subject to user restrictions or that is held for a company’s own expansion.

Page 107 2.2 It is now understood that the Cabinet Secretary for Social Justice, Communities and Pensioners’ Rights , Alex Neil MSP, has taken much of the responsibility for the planning system in Scotland.

3 Net Economic Benefit

3.1 The SDP Manager was invited by the Cabinet Secretary for Social Justice, Communities and Pensioners’ Rights to attend a round table discussion in Edinburgh earlier next month to consider how issues of ‘net economic benefit’ can best be addressed through the planning system in Scotland. This follows the commitment given by the Scottish Government to produce further guidance following the publication of Scottish Planning Policy in June 2014.

3.2 Draft Scottish Planning Policy in 2013 suggested that “ [t]he planning system should: attach significant weight to economic benefit of proposed development as a material consideration, particularly the creation of new jobs, recognising and responding to economic and financial conditions [etc] ”. The SDPA’s response raised concerns about this issue, particularly in the absence of clear advice on how it should be measured.

3.3 The final version of SPP in June 2014 states that “policies and decisions should be guided by the following principles: giving due weight to net economic benefit [etc ]” . This is a much more measured phrase and more in line with the position expressed by the SDPA in its consultation response. The Scottish Government at the same time committed to preparing further guidance on how net economic benefit could be measured and integrated into the decision-making process.

3.4 It is understood that a review process will take place in the summer on the basis of draft guidance, to which SDPA officers will be invited to respond.

4 Planning Performance Reports

4.1 The Strategic Development Planning Authority agreed the submission of its Annual Report / Planning Performance Report to the Scottish Government at its meeting of September 2014. Feedback from the Scottish Government was received on 11 December 2014 and is attached at Appendix 2. Two ‘amber’ ratings were received, against performance markers 6 and 13 due to the need to carry service improvement measures forward to 2014/15 and the lack of detail in expressing the outcomes of sharing good practice with the other SDPAs.

4.2 An extract from the Scottish Government’s composite report on the feedback to all four SDPAs is attached at Appendix 3. Aberdeen City and Shire SDPA was not assessed against Performance Markers 9 and 10 due to the stage reached in the plan preparation process. All four SDPAs received ‘amber ’ ratings under marker 13 due to the reports not detailing the outcomes of sharing good practice rather than not sharing it. This is an issue which should be easy to rectify in next year’s report.

Page 108 4.3 The submission date for the 2014/15 report has been brought forward to 31 July 2015, so the Planning Performance Report will be reported to the June 2015 meeting of the SDPA for agreement.

4.4 The SDPA led work on behalf of Heads of Planning Scotland to review the ‘Development Planning ’ and ‘ Effective Land Supply and Delivery of O utputs’ indicators used in previous submissions. This has led to revised indicators which provide more clarity on development plan performance and consistency in the reporting of effective housing land supply figures. It is anticipated that the collation of land supply data by the Scottish Government will enable a national picture to be presented for the first time. The previous and new headline indicators are set out in Figure 1 below.

Figure 1: Previous and New PPF Headline Indicators

Previous Headline Indicators New Headline Indicators Age of local / strategic development Age of local / strategic development plan(s) plan(s) (full years) (years and months) Development plan scheme on track? (Y/N) Will the local / strategic development plan(s) be replaced by their 5 th anniversary according to the current development plan scheme? (Y/N) Has the expected date of submission of the plan to Scottish Ministers in the development plan scheme changed over the past year? (Y/N) Were development plan scheme engagement / consultation commitments met during the year? (Y/N) Effective Housing Land Supply (years) Established housing land supply (units) Effective Housing Land Supply 5-year Effective housing land supply (units) Housing Approvals 5-year Housing supply target (units) 5-year Effective housing land supply (years, to one decimal place) Housing approvals (units) Housing completions in last 5 years (units) Effective Employment Land Supply Marketable Employment Land Supply (Ha) Employment Land Take-Up Employment Land Take-Up (Ha)

5 Other SDPAs

5.1 The three other Strategic Development Planning Authorities (centred on Dundee, Edinburgh and Glasgow) have been working on the preparation of Proposed Plans, Main Issues Reports and Supplementary Guidance over recent months. A brief overview is provided below.

TAYplan SDPA 5.2 The TAYplan Strategic Development Plan was approved by Scottish Ministers in June 2012 and a Main Issues Report for the replacement plan was published in April 2014. The SDPA responded to that consultation, highlighting a small number of issues. A Proposed SDP has now been agreed and is going through

Page 109 its ratification process with the constituent councils. The period for objections to the plan will begin on 11 May 2015 and close on 3 July 2015. A report will be presented to the June 2015 meeting of the SDPA to determine whether a response to the Proposed Plan is required.

SESplan SDPA 5.3 The SESplan Strategic Development Plan was approved by Scottish Ministers in June 2013 with a requirement to prepare supplementary guidance on housing land. Draft guidance was published in November 2013 and a final version was approved on 28 October 2014, following a direction from Scottish Ministers and ratification by the constituent authorities.

5.4 Work is now well under way on the preparation of a Main Issues Report, although its publication is now expected on 21 July 2015 for an 8 week consultation period closing on 15 September 2015.

Clydeplan SDPA 5.5 The Glasgow and the Clyde Valley Strategic Development Plan was approved by Scottish Ministers in June 2012 and a Main Issues Report was published for consultation on 30 January 2015, with a closing date of 27 March 2015. A Proposed Plan is due in January 2016, with submission to Scottish Ministers expected in May 2016.

6 Royal Town Planning Institute Policy Paper – “Strategic Planning: Effective Cooperation for Planning Across Boundaries”

6.1 The Royal Town Planning Institute (RTPI) published a policy paper on strategic planning in January 2015 which is attached at Appendix 4 (a one page Scottish summary is provided in Appendix 5). While covering the principles of strategic planning and the significant benefits it brings on a UK-wide basis, it also examines the constituent countries of the UK in more detail. Scotland-specific recommendations are included on pages 27 and 28 of the report and are summarised below:

a. SDPAs must be able to work in a context that allows them to take long-term decisions which may be contentious but which are required to ensure that the city region functions economically, environmentally and socially; b. SDP Action Programmes must be clearer and stronger so that they become the delivery document for spatial change within the city regions; c. It is imperative that SDPs (and Local Development Plans) are better connected to Community Plans and Single Outcome Agreements (SOAs); d. There is a need for SDPAs to be seen as key players in collaborative partnerships for their areas; e. The Development Plan Examination should still be in public where justice can be seen to be done; and

Page 110 f. There is a need to ensure that the skills and knowledge sets required to undertake strategic planning are not lost.

6.2 The SDP Manager participated in a Round Table evidence-gathering session held by the RTPI in early 2014 to inform the policy paper.

7 Green Alliance – “Opening up infrastructure planning”

7.1 The Green Alliance (an independent think tank focused on ambitious leadership for the environment) has recently published a report which explores how infrastructure can be better planned in the UK ( http://www.green- alliance.org.uk/resources/Infrastructure_planning.pdf ). The report highlights the need for spatial plans at a regional or city region scale where dialogue and engagement can take place at a local level around the need for and impacts of infrastructure projects.

7.2 The Aberdeen City and Shire SDP is highlighted as an example of good practice in the coordination of infrastructure provision and its spatial implications at the city region scale.

8 Local Development Plans Update

8.1 Local Development Plans (LDPs) were adopted by both Aberdeen City Council and Aberdeenshire Council during 2012. Both councils have published timetables for the preparation of replacement plans over the next two years and completed their ‘Main Issues Report’ stages . These plans are being prepared to be consistent with the Aberdeen City and Shire Strategic Development Plan (2014).

8.2 Both Proposed LDPs were published in late March 2015, with only a week between the two publication dates. After the period for representations on the two proposed plans closes, both councils will be working towards the submission of the plans for Examination later in the year.

8.3 Summaries of the timetables for the two plans can be found in Figure 2 below.

Figure 2: Local Development Plan Timetables

Stage of LDP process Aberdeen City Aberdeenshire Main Issues Report 13 January 2014 28 October 2013 Proposed Plan 20 March 2015 27 March 2015 Submission to Scottish Ministers November 2015 December 2015 Adopt November/ December 2016 October 2016

8.4 It is to be welcomed that both plans were published before the first anniversary of the SDP’s approval by Scottish Ministers on 28 March 201 4.

Page 111 9 City Centre Masterplan

9.1 Aberdeen City Council have commissioned BDP as lead consultant for the preparation of a masterplan and delivery programme aimed at revitalising the city centre. This fits well with the SDP’s focus on city centre regeneration. The SDP recognised the importance of the city centre to the city region and the need for a strong focus on improving the quality of the city centre’s shopping, leisure, commercial and residential environment.

9.2 A third round of engagement with stakeholders and the wider public took place in March / April 2015 on the basis of an exhibition and consultation brochure (see Appendix 6). The consultants will be working on the submission of the final masterplan and delivery framework by summer 2015.

9.3 It is intended that the masterplan (elements of it or projects flowing from it) would be adopted as statutory supplementary guidance to the Aberdeen City Local Development Plan which is currently in preparation.

10 City Region Deal Negotiations

10.1 City Deals are agreements between the UK (and Scottish) government and local government that give the city region control to: · take charge and responsibility of decisions that affect their area; · do what they think is best to help businesses grow; · create economic growth; and · decide how public money should be spent.

10.2 They are deals which are negotiated between the parties and can encompass financial and other commitments by both parties in the interests of the city region. They are tailored to the particular challenges and opportunities of an area and vary considerably from one area to another.

10.3 Following a period of engagement with stakeholders within the city region over recent months, Aberdeen City Council and Aberdeenshire Council both agreed a bid document for submission to the UK Government on 12 March 2015 (http://www.aberdeencity.gov.uk/nmsruntime/saveasdialog.asp?lID=63430&sID=26262 ) which set out a proposition with a value of almost £3bn over the next 20 years. There are two broad themes of infrastructure (encompassing transport, housing, city centre regeneration and digital connectivity) and economic development (focussing on innovation, skills and internationalisation).

10.4 The Chancellor of the Exchequer announced in his Budget speech of 18 March 2015 that the UK Government would commence negotiations on a City Region Deal for the area. There is no fixed timescale for these negotiations so it is not known when they will be concluded.

Page 112 11 Scotland’s National Marine Plan and Scottish Marine Regions

11.1 The National Marine Plan was published and laid before the Scottish Parliament on 11 December 2015 (http://www.gov.scot/Resource/0046/00465865.pdf ). The Rural Affairs, Climate Change and Environment (RACCE) Committee published its report on 30 January 2015 following a number of evidence sessions (http://www.scottish.parliament.uk/S4_RuralAffairsClimateChangeandEnvironmentCommittee/R eports/2nd_Report_2015_Scotlands_National_Marine_Plan.pdf ). The Scottish Government’s response to this was published on 17 February 2015 (http://www.scottish.parliament.uk/S4_RuralAffairsClimateChangeandEnvironmentCommittee/G eneral%20Documents/20150217_Scottish_Government_response_to_NMP_report.pdf ). A debate was also held in the Scottish Parliament on 19 February 2015 (http://www.scottish.parliament.uk/parliamentarybusiness/28862.aspx?r=9784&i=89729 ).

11.2 The Scottish Government published the National Marine Plan on 27 March 2015 (http://www.gov.scot/Resource/0047/00474281.pdf ). A Circular on the relationship between terrestrial and marine planning is anticipated before the end of April 2015.

11.3 There still remains a significant lack of clarity about Marine Scotland’s intentions for timescales around the roll-out of Regional Marine Plans. The Scottish Marine Regions Order 2015 was laid before the Scottish Parliament on 9 March 2015 (http://www.legislation.gov.uk/sdsi/2015/9780111027004/contents ), with the lead committee due to report in early May. It is hoped that further clarity will be forthcoming after the final publication of the Order.

11.4 With the publication of the National Marine Plan, there is now an overlap of responsibilities in the inter-tidal zone which are covered by both the strategic/local development plan as well as the marine plan. It is therefore important that the plans are closely aligned. This will be particularly important when regional marine plans are prepared.

11.5 In addition, all public authorities taking authorisation or enforcement decisions that affect or might affect the Scottish marine area or the UK marine area, respectively, must do so in accordance with the UK Marine Policy Statement, the National Marine Plan and any subsequent regional marine plan once adopted, unless relevant considerations indicate otherwise. This includes decisions on terrestrial planning applications and enforcement action. This raises some complexities for decision-making on planning applications which could have a marine impact, where the development plan and the national marine plan will now form the basis for decision-making.

11.6 The planning application for carbon capture and storage at Peterhead (see below) will be an early large application where these potential complexities apply.

12 Scotland’s Economic Strategy

12.1 The Scottish Government published a new economic strategy in March 2015, building on the previous strategies of 2007 and 2011.

Page 113

12.2 A summary of the strategy is included as Appendix 7, while the full strategy is available at - http://www.gov.scot/Resource/0047/00472389.pdf .

12.3 Consideration will be given to this in the context of work on the next strategic development plan later in the year.

13 Superfast Broadband for Scotland – Progress Report

13.1 Audit Scotland published a progress report for the roll-out of superfast broadband in Scotland in February 2015 (Appendix 8).

13.2 The report expects 95% of premises in Scotland will have access to the superfast broadband network by the end of 2017 if contractual targets are met, meeting the interim target of 85% by March 2016 as well. However, percentages are expected to vary across Scotland, from over 99% in five council areas to just 70% in the Western Isles. Aberdeen City is expected to reach approximately 97% and Aberdeenshire 89% (see Appendix 8, page 23).

13.3 Of the £55.7m being contributed to the project by individual councils, by far the largest contribution is being made by Aberdeenshire Council (see Appendix 8, p16).

13.4 Although BT is meeting its contractual targets, progress against its implementation plan is slower than expected.

13.5 The Audit Scotland makes a number of recommendations for both the Scottish Government and Highlands and Islands Enterprise who are contacting BT to provide the non-commercial elements of the superfast broadband roll-out.

14 Peterhead Carbon Capture and Storage

14.1 The Carbon Capture and Storage (CCS) project at Peterhead Power Station took an important step forward recently with the submission of the planning application for the onshore elements of this cutting-edge energy project.

14.2 Shell, in partnership with Scottish and Southern Energy (SSE), has now submitted a planning application for the proposals which has been worked up in detail over the last few years following short listing in a UK Government CCS commercialisation competition. The proposal aims to capture up to 10 million tonnes of CO2 over 10 years and store it in the depleted Goldeneye reservoir 100km offshore and 2.5km beneath the seabed.

14.3 The application can be viewed on the Aberdeenshire Council website - APP/2015/0903 , with an earlier report on the agenda seeking agreement for an SDPA response to the consultation.

14.4 The Aberdeen City and Shire Strategic Development Plan highlights carbon capture at Peterhead as one of its proposals which has the potential to have

Page 114 economic as well as environmental benefits, building on the oil and gas expertise and infrastructure of the area built up over the last 40 years.

14.5 The project is also identified as a 'National Development' in National Planning Framework 3 which was published by the Scottish Government in June 2014.

14.6 It is anticipated that the application will be determined at a meeting of Aberdeenshire Council by the end of August 2015.

14.7 Also recently announced was joint funding by the Scottish and UK Governments for further feasibility work relating to a potential 570MW coal-gasification power station with CCS at Grangemouth. Carbon dioxide emissions from this proposal would be transported onshore in existing pipelines and then offshore for storage under the North Sea. This project could make use of existing gas pipelines running from Grangemouth up through Aberdeenshire to St Fergus.

15 Northconnect (Peterhead to Norway Electricity Interconnector)

15.1 An application has been received by Aberdeenshire Council for the onshore elements of the ‘Northconnect’ project. This proposal seeks to link the electricity markets of the UK and Norway with a high voltage direct current (HVDC) cable with the capacity to transmit 1.4GW of electricity. The project has the potential to facilitate the balancing of renewable energy sources across Europe and increase security of supply. The pro ject is highlighted as a ‘proposal’ in the SDP and is also a ‘ National D evelopment’ under National Planning Framework 3.

15.2 The SDPA will respond to this consultation over the next few weeks.

16 Chapelton of Elsick s75A Application to Aberdeenshire Council

16.1 At a special meeting of the SDPA on 6 February 2015 the SDPA agreed a response to an application by the landowners at Chapelton of Elsick to modify the terms of the s75 agreement they signed up to in 2013.

16.2 Aberdeenshire Council met on 12 March 2015 and unanimously agreed to refuse the application to modify the agreement.

Page 115 This page is intentionally left blank

Page 116 Appendix 1

EMPLOYMENT LAND AUDIT 2014

A joint publication by Aberdeen City Council and Aberdeenshire Council

March 2015

Page 117 Appendix 1 EMPLOYMENT LAND AUDIT 2014

Executive Summary

1. Introduction 1.1 Purpose of Audit 5

2. Background 2.1 Scotland and North East Strategies and Policies 6 2.2 Aberdeen City and Shire Strategic Development Plan 8 2.3 Aberdeen City and Aberdeenshire Local Development Plans 9 2.4 Existing Employment Land Monitoring Arrangements 10

3. Employment Land Audit 2014 3.1 Preparation of Audit 11 3.2 Employment Land Supply 11 3.3 Established Employment Land Supply 12 3.4 Constrained Employment Land Supply 13 3.5 Marketable Land Supply 14 3.6 Immediately Available Land Supply 16

4. Analysis of Trends 4.1 Land Take-Up and Employment Space Market Activity 18 4.2 Office Space - Market Activity 19 4.3 Industrial Space - Market Activity 20 4.4 Trends in Employment Land 21

Appendix 1 Glossary of Terms 23 Appendix 2 Employment Land Supply in Aberdeen City and 25 map of Aberdeen City Industrial Estates Appendix 3 Employment Land Supply in Aberdeenshire 27 Appendix 4 Aberdeen City and Shire Zones 1, 2 and 3 34 Appendix 5 Strategic Growth Areas and Regeneration 36 Priority Areas in Aberdeenshire Appendix 6 Historical Development Rates in Aberdeen City 38 and Aberdeenshire

Page 118 Appendix 1 EXECUTIVE SUMMARY

Purpose and Background

The Aberdeen City and Shire Employment Land Audit provides up-to-date and accurate information on the supply and availability of employment land in the North-East of Scotland. The audit is produced by officials of Aberdeen City and Aberdeenshire Councils, in consultation with Scottish Enterprise, the Strategic Development Planning Authority (SDPA) and representatives from the private sector. The audit supports the strategic priorities of the Scottish Government Economic Strategy and the Economic Action Plan for Aberdeen City and Shire, published by ACSEF in 2013, and the Aberdeen City and Shire Strategic Development Plan (2014). The definitions used and the form of the audit are consistent with Scottish Planning Policy and the audit FRQWULEXWHVWRWKHPRQLWRULQJRIWKHFRXQFLOV·/RFDO'HYHORSPHQW3ODQVDQG the Aberdeen City and Shire Strategic Development Plan (2014). The 2014 Audit has a base date of 1st April 2014. You can also view the Employment /DQG$XGLWGRFXPHQWRQWKHFRXQFLOV·ZHEVLWHVDW www.aberdeencity.gov.uk/localdevelopmentplan www.aberdeenshire.gov.uk/statistics/ela/index.asp

Established Supply

Between 2012 and 2013, there had been relatively little change in the established employment land supply in the two local authorities, with 272 hectares in Aberdeen City and 608 hectares in Aberdeenshire. The adoption of the respective Local Development Plans in 2012 had released a significant amount of employment land.

Between 2013 and 2014 the established supply has reduced in the City by 10% bringing the total to 246 hectares. Over the past year, 17 hectares have been completed and 34 hectares are under construction, primarily close to Aberdeen Airport and at the Prime Four Business Park. For the Shire the reduction is 2% leaving a total of 593 hectares. Over the past year, 14 hectares have been completed and a further 11 hectares are under construction, mainly at Westhill and Portlethen.

1 Page 119 Appendix 1

Constrained Supply

The constrained supply for Aberdeen City has remained unchanged from 2013 to 2014. Last year there had been the removal of a significant amount of land from the constrained supply into the marketable supply, with the development of ABZ, D2 and Aberdeen International Business Parks at Dyce Drive having made rapid progress, as well as the planning of future phases DW3ULPH)RXU.LQJVZHOOV7KHUHDUHKDRIFRQVWUDLQHGVXSSO\LQ$EHUGHHQࡏ 36% of its established supply.

In Aberdeenshire, the constrained land supply has also remained constant at 234ha between 2013 and 2014, meaning that 39% of the established land supply in the Shire is constrained. There has been movement of sites between the marketable and constrained supply over the year, particularly in Portlethen, but the net effect shows no overall change in the constrained supply compared to the previous year.

In general, the large amount of constrained supply in both authorities can be explained by the fact that some of the larger LDP allocations with more complex infrastructure requirements are realistically expected to come forward in the medium rather than short term.

Marketable Supply

,Q$EHUGHHQ&LW\WKHPDUNHWDEOHVXSSO\KDVGHFUHDVHGE\RQ·V figures to 140ha as significant areas of land have rapidly been taken up or are under construction. In Aberdeenshire, there was a decrease of 4% in the marketable supply over the year to 360ha, the net effect of some sites having been developed and others moving between the marketable and constrained supply.

The Strategic Development Plan has a target of 60ha of marketable land being available in Aberdeen City and 60ha in the Strategic Growth Areas of Aberdeenshire at all times. The supply of marketable land in Aberdeen City and key Aberdeenshire settlements gives no cause for concern in terms of the choice of sites currently available. The supply of immediately available employment land in Aberdeen City stands at 66ha, and 40ha in Aberdeenshire. 27% of the established supply of land in Aberdeen City is immediately available compared with 7% in Aberdeenshire, perhaps reflecting the continued strength of demand in the City and rapid progress on certain sites.

2 Page 120 Appendix 1

Market Activity 1

Economic activity and demand for employment space in Aberdeen had remained strong through 2013 and early 2014, mainly from the oil and gas sector and underpinned by a stabilised Brent Crude price of over $100 per barrel, with many occupiers seeking to expand and relocate. For example, extensive offices are being built for Aker Solutions at Aberdeen International Business Park, close to the Airport, and Premier Oil are to take new offices at Phase 2 of Prime Four, Kingswells. However, later in 2014 the Brent Crude price had fallen significantly to around $60 per barrel by December and has continued to fall in early 2015. It is not yet known how this will affect demand from the energy sector in the future.

2013/14 was the third consecutive impressive year for take up of employment space in and around Aberdeen, and development rates for employment land as shown in the Audit have increased significantly. A number of new business parks either remain under construction this year or have only recently started construction, while others have planning permission, meaning rapid take-up of employment land could continue in the short term where development is already committed. For example work is ongoing at the new business parks adjacent to the Airport (ABZ, D2 and Aberdeen International) and work was only started on site at City South, Portlethen in the second half of 2014. In addition, a number of large scale, high quality office developments have come forward on brownfield sites in the City Centre which are not identified as employment land in the audit, including a number in the North Dee %XVLQHVV4XDUWHUVXFKDV¶7KH*UDQGH·RIILFHGHYHORSPHQWDW3R\QHUQRRN Road. Demand for quality industrial premises during 2013/14 has also been good both in the City and those parts of the Shire that are close by and well connected, resulting in the take up of employment land in Blackburn, Kintore, Westhill and Portlethen.

Many international energy companies have a significant presence in and around Aberdeen City and the larger Aberdeenshire towns. Technologies developed by companies and skilled employees based in Aberdeen City & Shire, have been increasingly in demand all over the world. One of the main drivers of new office and industrial development has been the growth in international oil and gas sales, and the competition between companies to attract and retain skilled staff both locally and internationally.

1 Published Sources: Knight Frank Aberdeen Office Market Activity Report Spring 2014; Ryden 74th Scottish Property Review April 2014; Aberdeenshire Economic Development Review 2013/14.

3 Page 121 Appendix 1

Issues for the Future

With the adoption of the two Local Development Plans in 2012, there is no longer an issue with meeting the marketable employment land requirements as set by the Strategic Development Plan (2014).

The rate at which land is transformed from the marketable to the immediately available supply, and the subsequent building out of this land, will be determined largely by market forces. In and around Aberdeen, demand for Grade A office space and good quality industrial premises remained high in 2013/14 and there had been a strong market for both pre-let and speculative developments. However, with the significant reduction in the oil price in the latter half of 2014, it is not known if demand will continue at this level. In many smaller towns in Aberdeenshire, speculative building involves a considerably greater financial risk to the developer and there may also be infrastructure constraints, such as roads, drainage etc that need to be overcome.

Land ownership can also be a significant constraint to the development of employment land, particularly if the land is owned by a developer for whom office and/or industrial space is not a priority compared to housing. However, delivering employment space within large new developments is a vital part of ensuring mixed and sustainable communities.

The Employment Land Working Group intend to review the methodology used to produce the audit from 2015 onwards in light of the requirements for Business Land Audits outlined in paragraphs 101-102 of the new Scottish Planning Policy 2014. In particular it will consider the inclusion of brownfield/ city centre redevelopment sites, as well as greenfield sites, in order to reflect a fuller picture of employment land availability.

4 Page 122 Appendix 1 1. INTRODUCTION

1.1 Purpose of Audit

1.1.1 The Aberdeen City and Shire Employment Land Audit has been prepared to bring together into one source an up-to-date document with accurate information on the supply and availability of employment land in the North East of Scotland.

1.1.2 The audit is used to monitor the policies and proposals relating to employment land in the Strategic Development Plan and the $EHUGHHQ&LW\DQG$EHUGHHQVKLUH&RXQFLOV·/RFDO'HYHORSPHQW Plans. In addition, the information provided in the audit assists in the preparation of economic strategy and policy making and in the implementation of action plans, and may highlight areas where further research and analysis is required. The audit is also of interest to companies, developers and other organisations with a requirement for, or interest in, employment land in the North East of Scotland

1.1.3 Officials of Aberdeen City and Aberdeenshire Council together with the Strategic Development Planning Authority, Scottish Enterprise, ACSEF and representatives of the private sector (all members of the Employment Land Working Group) have prepared the audit. Reference is also made to relevant information and research from the private sector. This has helped ensure the provision of a robust and comprehensive source document for employment land supply to assist in delivering the future prosperity of the North East of Scotland. The audit is produced on an annual basis, this being the fourteenth in the series, the first having been published in October 2001.

5 Page 123 Appendix 1 2. BACKGROUND

2.1 Scotland and North East Strategies and Policies

2.1.1 The updated Scottish Government Economic Strategy , published LQVHWVRXWWKHEURDGDJHQGDIRUWKH*RYHUQPHQW·VIRFXVRQ 6FRWODQG·VHFRQRP\,WJLYHVFOHDUSULRULW\WRDFFHOHUDWLQJHFRQRPLF recovery, with a range of measures to tackle unemployment and promote employability. It has six Strategic Priorities which will drive sustainable economic growth and develop a more resilient and DGDSWDEOHHFRQRP\ 7KHVHDUH

• Supportive Business Environment;

• Transition to a Low Carbon Economy;

• Learning, Skills and Well-being;

• Infrastructure Development and Place;

• Effective Government; and

• Equity.

 ¶%XLOGLQJRQ6XFFHVV·WKHILYH\HDU Economic Action Plan for Aberdeen City and Shire was published by ACSEF in 2013 and sets out a vision and strategic priorities for the region to work towards. It identifies seven strategic priorities to achieve economic growth and HQKDQFHGTXDOLW\RIOLIH7KHVHDUH

• Deliver a fully integrated transport network.

• Deliver City Centre redevelopment.

• Improve efficiency of planning decision making.

• Attract, retain and develop skilled people.

• Maximise intellectual capital.

• Anchor the offshore energy supply chain.

• Aberdeen City and Shire as location of choice for company headquarters.

6 Page 124 Appendix 1

2.1.3 The Scottish Government adopted the National Planning Framework 2 (NPF2) LQ-XQH7KH13)DLPVWRJXLGH6FRWODQG·VVSDWLDO development to 2030 and sets out strategic development priorities WRVXSSRUWWKH6FRWWLVK*RYHUQPHQW·VSURPRWLRQRIVXVWDLQDEOH economic growth. This Framework takes forward the spatial aspects of the Government Economic Strategy, to ensure that each part of the country is able to play to its strengths in building a Scotland that is wealthier and fairer, smarter and greener, healthier, safer and stronger. Infrastructure development and place will be key priorities. NPF2 has subsequently been reviewed and the National Planning Framework 3 (NPF3) was adopted in June 2014. The NPF3 will have significant implications for the development of employment land in Aberdeen City and Shire. The Aberdeen Harbour expansion and improvements to Aberdeen Airport are included as National Developments. NPF3 also reinforces the importance of infrastructure provision, particularly improvement to transport links, such as the Aberdeen Western Peripheral Route, and major energy-related projects, including Carbon Capture and Storage technology focused on Peterhead.

2.1.4 NPF3 highlights the potential for both Aberdeen and Aberdeenshire to apply their energy sector and offshore strengths to the development of renewable and clean energy technologies. Aberdeen is focusing on VWUHQJWKHQLQJLWVUROHDV6FRWODQG·VQRUWKHUQJDWHZD\DQGEURDGHQLQJ its economic base. The City Council together with partners has recently commissioned the production of a City Centre Masterplan and Delivery Programme focusing on improving the quality of the environment in the city centre and developing cultural and recreational facilities to create a more vibrant social scene. There is also scope for attracting more tourists to the city and expanding the service VHFWRULQFOXGLQJILQDQFLDOVHUYLFHV7KHFLW\·VUROHDVDUHJLRQDOPHGLD centre provides a base from which to build a larger creative sector. Aberdeenshire Economic Development Strategy 2011-2016 aims to create the conditions for sustainable economic growth, diversification and regeneration within Aberdeenshire by attracting and supporting businesses and industries, and developing communities. A Focused Regeneration Strategy for Aberdeenshire 2013-2018 states that there will be a shift in regeneration working in the Council resulting in the spend and activity being focused on Fraserburgh for the next few years.

7 Page 125 Appendix 1

2.1.5 The Energetica project aims to highlight attractive development propositions on residential and commercial sites along the A90 corridor from Bridge of Don in Aberdeen City, through Ellon, to Peterhead in Aberdeenshire. Energetica also includes development opportunities to the north of Aberdeen City from Bridge of Don to Aberdeen Airport.

 7KH6FRWWLVK*RYHUQPHQW·VSODQQLQJSROLF\IRUHFRQRPLFGHYHORSPHQW was previously set out in Scottish Planning Policy (SPP) published in February 2010. This has now been reviewed, and a new SPP was adopted in June 2014, alongside NPF3. The SPP (2014) asks Councils to allocate sites that meet the diverse needs of different sectors and sizes of business and to take a flexible approach, allowing changing circumstances to be accommodated and new opportunities to be realised.

2.1.7 Planning authorities should ensure that there is a range and choice of marketable sites and locations for businesses allocated in development plans, including opportunities for mixed use development, to meet anticipated requirements and a variety of size and quality requirements. Marketable land should meet business requirements, be serviced or serviceable within 5 years, be accessible by walking, cycling and public transport, and have a secure planning status. The 2014 SPP states that business land audits should be undertaken regularly to monitor sites within the existing business land supply and to inform reviews of development plans. This audit, now in its fourteenth year, provides a useful tool to measure performance against some of the requirements of Scottish Planning Policy and the Strategic Development Plan ( see paragraph 2.2.1 below ).

2.2 Aberdeen City and Shire Strategic Development Plan

2.2.1 The Aberdeen City and Shire Strategic Development Plan replaced the previous Structure Plan and was approved by Scottish Ministers in March 2014. The Plan, which sets out a strategic framework for the management of land in the North East up to 2035, requires the Aberdeen and Aberdeenshire Local Development Plans to identify land for business and industrial uses throughout the plan periods.

2.2.2 Specific employment land allowances are stated for the four identified strategic growth areas, with flexibility for Aberdeenshire Council WRGHWHUPLQHDQDSSURSULDWHPHFKDQLVPIRU¶ORFDOJURZWKDQG

8 Page 126 Appendix 1

GLYHUVLILFDWLRQ·DUHDV%XVLQHVVDQGLQGXVWULDOGHYHORSPHQWUDWHVDUH to be monitored to ensure continuity of employment land supply. In this respect the audit contributes to the monitoring requirements of the Strategic Development Plan.

2.2.3 The targets under the Economic Growth Objective of the Strategic 'HYHORSPHQW3ODQLQFOXGHWRPDNHVXUHWKHUHLVDWOHDVWKDRI marketable land available to businesses at all times in a range of places within Aberdeen City as well as 60ha in the strategic growth areas within Aberdeenshire.

2.2.4 The Strategic Development Plan replaced the previous Structure Plan during the period of this audit and maintains the same employment land requirements as the Structure Plan.

2.3 Aberdeen City and Aberdeenshire Local Development Plans

2.3.1 The Aberdeen City and Shire Strategic Development Plan 2014 seeks “to provide opportunities which encourage economic development and create new employment in a range of areas that are both appropriate for and attractive to the needs of different industries”. In turn, Local Development Plans for Aberdeen City and Aberdeenshire are required to identify employment land allocations and identify strategic reserve land to meet this objective.

2.3.2 The Aberdeen Local Development Plan was adopted in February 2012 and aims to maintain a ready supply of employment land in the right places to make sure Aberdeen retains its position as a competitive and sustainable business location. A large, phased allocation of employment land has thus been identified which will ensure the planning system does not act as a constraint to economic development.

2.3.3 The Aberdeenshire Local Development Plan was adopted in June 7KHSODQSURPRWHVDQ¶RSHQIRUEXVLQHVV·DSSURDFKDQG considers the development of business as being very important to the economic health of the region. It supports the development of business and sustainable economic growth in all areas by taking account of the economic benefits of proposed development when making decisions in development management.

9 Page 127 Appendix 1

2.3.4 The new and existing employment land sites allocated in the adopted Aberdeen City and Aberdeenshire Local Development Plans have been included in the Employment Land Supply Tables that can be found in Appendices 2 and 3 . The audit supports the monitoring requirements of the two Local Development Plans.

2.4 Existing Employment Land Monitoring Arrangements

2.4.1 The audit is a record of the employment land supply in Aberdeen City and Shire at a given date. It shows the supply of marketable land as defined by SPP. It does not provide information on the range and size of individual plots within new employment areas, nor does it provide detailed information on vacant land within existing, completed sites. In addition, it does not include brownfield development sites, such as those in Aberdeen city centre. It provides a useful cross-check with $JHQWV·5HYLHZVDQGWKH6FRWWLVK3URSHUW\1HWZRUNUHJDUGLQJXSWR date information on sites and properties in the area and highlights areas where further work may be required. In addition, Aberdeen City Council publishes an office and hotel planning bulletin annually, which monitors the development of new Class 4 (business) uses in the City.

2.4.2 Further information on properties and sites in Aberdeen City and $EHUGHHQVKLUHLVDYDLODEOHIURPWKHIROORZLQJVRXUFHV

1 The 2013-2014 Aberdeen Industrial Areas Guide

2 The Aberdeenshire Business and Industrial Areas Guide 2014

3 The 2013 Scottish Annual Vacant and Derelict Land Survey (published February 2014)

4 The Aberdeen Vacant and Derelict Land Survey 2013 Report    VHH¶2WKHU5HODWHG,QIRUPDWLRQ·

5 The Scottish Property Network

6 The Commercial Property Review for Grampian, Highlands and Tayside Regions

7 Aberdeenshire Council Industrial Property

8 Scottish Assessors Grampian Valuation Roll

9 Aberdeen City Council Office and Hotel Planning Bulletins    VHH¶2WKHU5HODWHG,QIRUPDWLRQ·

10 Page 128 Appendix 1 3. EMPLOYMENT LAND AUDIT 2014

3.1 Preparation of Audit

3.1.1 The audit is prepared from information gathered by officials from both Councils, through their monitoring of planning approvals and individual site inspections. The information is kept up-to-date throughout the year and the status of sites checked and agreed with Scottish Enterprise and information published by the private sector, as appropriate. A meeting of the Employment Land Working Group is held in December each year to agree the figures contained in the audit and to discuss issues relating to the delivery of employment land in the region. The base date for the published data is 1 April 2014. All figures are given in hectares and are net areas unless otherwise stated.

3.2 Employment Land Supply

3.2.1 Several categories of land supply are identified in the audit. Appendix 1 provides a list of definitions used for these categories. Information on established, constrained, marketable and immediately available employment land supply is given in full in Appendices 2 and 3 . The information has been divided by area (Aberdeen City and Aberdeenshire. Aberdeenshire is further divided by Administrative Area and settlement - see Figure 1 ). It includes details of site area and location, developer, constraints and servicing status. Appendix 4 contains information collated at 3 different geographical areas radiating from the City and referred to as zones 1, 2 and 3 which reflect distances from Aberdeen and to some extent, land values. Appendix 5 presents the information for Aberdeenshire by strategic growth areas. Appendix 6 contains information on historical employment land take-up rates in Aberdeen City and Aberdeenshire.

11 Page 129 Appendix 1

Figure 1 - Aberdeen City and Aberdeenshire

Rosehearty Fraserburgh Whitehills Portsoy Gardenstown Banff Macduff Banff and Buchan Strichen Aberchirder St Fergus Mintlaw Turriff Maud Peterhead Buchan

Huntly Fyvie

Formartine Cruden Bay Insch Rhynie Oldmeldrum Ellon Garioch Newburgh Inverurie Alford Kemnay Newmachar Balmedie Blackdog Kintore ABERDEENSHIRE Blackburn Marr ABERDEEN Westhill CITY

Torphins Aboyne Ballater Banchory Portlethen Drumoak Braemar Newtonhill

Stonehaven Kincardine and Mearns

Fettercairn

Inverbervie Laurencekirk Gourdon Johnshaven St Cyrus

Based on Ordnance Survey mapping. © Crown copyright reserved. Aberdeenshire Council 0100020767 2015.

3.3 Established Employment Land Supply

3.3.1 The established employment land supply for Aberdeen City and Aberdeenshire is shown in Figure 2 .

Figure 2 - Established Employment Land Supply 2013 and 2014 (net figures in hectares)

Employment Area 2013 2014 Change

Aberdeen City 272 246 -10%

Aberdeenshire 608 593 -2%

TOTAL 880 839 -5%

12 Page 130 Appendix 1

3.3.2 In Aberdeen City the level of established land supply has seen a net decrease of 10% between 2013 and 2014 to 246ha. Over the past year 17ha have been completed and 34 ha are under construction. Some of the larger sites that were under construction in 2013 and removed from the 2013 established supply remain under construction this year, meaning that the net decrease for 2014 appears lower than the pace of actual land take up in the City.

3.3.3 In Aberdeenshire there has been a slight decrease in the established land supply between 2013 and 2014. A total of 14ha were completed in the past year and a further 11 hectares are under construction. A number of other sites have been reassessed and re-measured resulting in an overall net decrease of only 2%.

3.3.4 Although there has been a relatively small reduction in the overall established employment land supply between 2013 and 2014 of 5%, there has been significant activity and take up of land, mainly in and around the City, some of which remains under construction for a second year. In particular there has been rapid expansion of new business parks in the vicinity of Aberdeen Airport and at Prime Four, Kingswells.

3.3.5 Demand for quality land in Aberdeen City and the surrounding towns had remained high through 2013 and early 2014. Oil prices had been high, although have dropped back significantly in the latter half of 2014, and there had been good demand from the oil and gas sector for high quality working environments in order to attract and retain staff. Across the City and Shire there are 45ha under construction, PXFKRIZKLFKLVOLNHO\WREHFRPSOHWHGE\QH[W\HDU·VDXGLW

3.4 Constrained Employment Land Supply

3.4.1 Land that is subject to constraints in Aberdeen City and Aberdeenshire is shown in Figure 3 .

Figure 3 - Constrained Employment Land Supply 2013 and 2014 (net figures in hectares)

Employment Area 2013 2014 Change

Aberdeen City 89 89 0%

Aberdeenshire 233 234 0%

TOTAL 322 323 0%

13 Page 131 Appendix 1

3.4.2 There has been no change in the constrained land supply for Aberdeen City between 2013 and 2014 remaining at 89ha which equates to 36% of its established supply. The constrained supply takes into account allocations within the Aberdeen Local Development Plan which do not currently have a Development Framework or Masterplan or are unlikely to see significant progression in the near future. The figure also takes into account employment land allocations within larger mixed use land release sites such as Grandhome and Countesswells. The employment land within such allocations will likely be delivered at a later stage of the overall development and is therefore designated as constrained within this audit.

3.4.3 The amount of constrained land in Aberdeenshire has also remained constant between 2013 and 2014 at 234ha, and makes up 39% of its established supply. This is the net effect of sites moving between the marketable and constained supply. For example, an access road has recently been constructed, opening up a large site north of Badentoy Industrial Park at Portlethen, removing the constraint and moving the land into the marketable supply. However, the Mains of Cairnrobin, Portlethen site comprising 37h has moved into the constrained supply this year because of transport issues. In line with the City, a number of mixed use LDP sites are regarded as constrained, either because they do not yet have agreed masterplans or because the planned phasing means the employment land element is not expected to be developed within five years of the base date of the audit. The relatively high supply of constrained employment land in the Shire compared to the City can be partly attributed to the inclusion of an allocation of 100ha at the former Edzell Air Base (on the southern Aberdeenshire border with Angus), which has a disproportionate impact on the overall total.

3.5 Marketable Land Supply

3.5.1 The marketable land supply in 2014 is shown in Figure 4 . These figures count land which is both immediately available and land which is not immediately available but does not face any constraints to development and could come forward within 5 years.

14 Page 132 Appendix 1

Figure 4 - Marketable Land Supply 2013 and 2014 (net figures in hectares)

Employment Area 2013 2014 Change

Aberdeen City 166 140 -16%

Aberdeenshire 375 360 -4%

TOTAL 541 500 -8%

3.5.2 The marketable land supply in Aberdeen City has fallen by 16% to 140ha as significant areas of land have been taken up or are under construction, largely in the vicinity of Aberdeen Airport, as well as Prime Four, Kingswells. In Aberdeenshire there has been a decrease of 4% in the marketable supply of land, attributable to the net effect of site take up and a number of sites moving between the constrained and marketable supply.

3.5.3 The supply of land in Aberdeen City and key Aberdeenshire settlements gives no cause for concern in terms of the choice of sites currently available. Aberdeen City and Aberdeenshire currently have an adequate choice and supply of marketable land, following both Councils having adopted their Local Development Plans in 2012. Demand for land in Aberdeenshire tends to be in those settlements concentrated around Aberdeen City such as Westhill, Kintore and Portlethen. As a result, employment land in these areas tends to be taken up quickly while large allocations of land in the north of Aberdeenshire are taken up at a slower rate.

3.5.4 With regard to Aberdeen City, it should be noted that land at the Aberdeen Energy and Innovation Parks, and land at Findlay Farm at Bridge of Don has not been included in the marketable/immediately available supply. These sites have only been counted as part of the established supply due to the fact that they are zoned for Class 4 use only (see Glossary of Terms).

15 Page 133 Appendix 1

3.6 Immediately Available Land Supply

3.6.1 The immediately available land supply for 2014 is shown in Figure 5 .

Figure 5 - Immediately Available Land Supply 2013 and 2014 (net figures in hectares)

Employment Area 2013 2014 Change

Aberdeen City 71 66 -7%

Aberdeenshire 45 40 -11%

TOTAL 116 106 -9%

3.6.2 The supply of immediately available land in Aberdeen City has decreased by 7% to 66ha in 2014, largely due to the net effect of further marketable land on the new business parks in the vicinity of the airport being classed as immediately available and other sites progressing, such as Aberdeen Gateway.

3.6.3 In Aberdeenshire there has also been a net decrease of 11% in the supply of immediately available land to 40ha as various sites are developed.

3.6.4 Overall some 62% of all immediately available land is currently located within Aberdeen City. In recent years there had been a lack of available land within the City which had led to more development taking place on available land in Aberdeenshire. With the addition of new sites from the Aberdeen Local Development Plan, adopted in 2012, Aberdeen City now has a greater proportion of the immediately available land. 27% of the established supply of land in Aberdeen City is immediately available compared with 7% in Aberdeenshire, perhaps reflecting the continued strength of demand in the City and rapid progress on sites during 2013/14.

3.6.5 Land under construction is not included in the above categories, as it is neither available nor considered as developed. On completion it will, however, be reflected in the historical development rates for next \HDU·VDXGLW/DQGXQGHUFRQVWUXFWLRQLVLGHQWLILHGLQ Appendices 2 and 3 of the Audit. At the beginning of April 2014 there were 34 hectares of employment land under construction in Aberdeen and 11 hectares of land under construction in Aberdeenshire.

16 Page 134 Appendix 1

3.6.6 Figure 6 gives a summary of the amount of land in Aberdeen City and $EHUGHHQVKLUHZKLFKIDOOVLQWRHDFKRIWKHVXSSO\FDWHJRULHV1%7KH Established Land Supply column represents the total supply of land in the corresponding area. The marketable supply includes land which is both immediately available and that which is not considered to be immediately available, but does not face any constraints to it coming forward within the next five years. Therefore the immediately available column reflects the proportion of marketable land which is serviced and awaiting development.

Figure 6 - Employment Land Supply Summary 2014

Hectares Aberdeen City Aberdeenshire 700

600

500

400

300

200

100

0

Under Con Established Constrained Marketable Imm / Available

17 Page 135 Appendix 1 4. ANALYSIS OF TRENDS

4.1 Land Take-Up and Employment Space Market Activity 2

4.1.1 In 2013/14, 14ha of employment land was developed in Aberdeenshire, in line with an average development rate of 14ha per year for the past 10 years. A further 11ha are currently under construction. In Aberdeen City, 17ha of land has been completed over the past year and a further 34ha are currently under construction.

4.1.2 2013 was a third consecutive impressive year for all employment space take-up in and around Aberdeen, including both new developments and the second hand market. A number of large new business parks are either under construction or have planning permission, and while healthy employment land take-up could have been expected to continue over the next few years, the impact of the more recent fall in the price of oil is not yet known. In addition, large office developments have frequently come forward on sites not currently identified as employment land in the audit, and there are a number of schemes currently underway in Aberdeen City Centre, for H[DPSOH¶7KH*UDQGH·RIILFHGHYHORSPHQWIRUDW3R\QHUQRRN5RDG part of the new North Dee Business Quarter.

4.1.3 The strength of demand during 2013/14 in Aberdeen and Aberdeenshire towns such as Westhill, Kintore and Portlethen can be attributed to the growth in the international oil and gas industry, the drive to recruit skilled employees in an attractive working environment and the high levels of investment, with many international energy companies having a significant presence in and around Aberdeen and the larger Aberdeenshire towns. International oil and gas firms have been increasingly seeking high-status, Grade A office space in a bid

2 Published Sources: Knight Frank Aberdeen Office Market Activity Report Spring 2014; Ryden 74th Scottish Property Review April 2014; Aberdeenshire Economic Development Review 2013/14.

18 Page 136 Appendix 1

to attract skilled employees in the face of competition from other cities worldwide. The price of Brent Crude remained over $100 per barrel in the 2013/14 financial year, and the industry had also been encouraged E\WKH8.7UHDVXU\·VDQQRXQFHPHQWRIWD[UHOLHIVLQFOXGLQJUHOLHI against future decommissioning costs. However, continued investment into the exploration and extraction of oil from increasingly difficult or costly North Sea reserves may now occur at a slower rate than previously anticipated given the recent significant fall in the price of Brent Crude to around $60 per barrel in December 2014.

4.1.4 Technologies developed by companies and skilled employees based in Aberdeen City & Shire, have been increasingly in demand and exported all over the world. One of the main drivers of new office and industrial development has been the growth in international oil and gas sales and the competition between companies to attract and retain skilled staff both locally and internationally. However, in a document HQWLWOHG¶7KH)XWXUH·ZKLFKGLVFXVVHVKRZ$EHUGHHQ&LW\DQG6KLUH will continue to be a world class centre of excellence for the global energy industry, ACSEF stress that companies are increasingly able to be located in any global energy city. Ensuring they choose Aberdeen will mean investing in and improving our transport infrastructure, housing, business space and social, cultural and leisure services.

4.1.5 In Aberdeenshire, demand remained high during 2013/14 in some locations, particularly in towns close to Aberdeen City with good transport links, such as Westhill, Kintore, Ellon and Portlethen. In more peripheral areas there tends to be much less activity despite the large number of allocated employment sites.

4.2 Office Space - Market Activity

4.2.1 2013/14 saw the take-up of over 1,000,000sqft of office space in the Aberdeen City/Westhill area, including development on both greenfield and brownfield sites, as well as the second hand market. This was a significant proportion of the combined take up level for Glasgow, Edinburgh and Aberdeen of just over 3,000,000sqft. It is estimated that the energy sector accounted for almost 80% of all the space transacted. A large proportion of this was in the form of pre-let DJUHHPHQWVIRUQHZXQLWVRQWKHFLW\·VEXVLQHVVSDUNVLQFOXGLQJ3ULPH Four, Kingswells and Prospect Park, Westhill. Reflecting the strength of demand during this period, there had been sufficient confidence

19 Page 137 Appendix 1

for some speculative development to also take place. There is a lack of supply in Aberdeen City Centre, although a number of high-profile VFKHPHVKDYHSHUPLVVLRQDQGDUHXQGHUZD\IRUH[DPSOHWKH¶7KH 3RLQW·GHYHORSPHQWDW7ULSOH.LUNV,QWKLVUHJDUGWKHSRSXODULW\RIWKH FLW\FHQWUHIRUFRPSDQLHV·KHDGTXDUWHUVLVUHVXUJLQJZKLFKFRXOGEH due to the fact that city centre offices are more likely to be attractive to a younger workforce. A number of large scale, high quality office schemes are also planned or under construction in the Poynernook Road district, branded the North Dee Business Quarter, to the south of Union Square shopping centre and transport hub. During 2013/14 Aberdeen continued to command the highest prime rents in the UK outside of London and the South East.

4.3 Industrial Space - Market Activity

4.3.1 There was also strong demand for industrial space during 2013/14 in both the City and Shire, which saw a take-up of around 1,000,000sqft in the Aberdeen City/Westhill/Portlethen area, again covering new build developments on both greenfield and brownfield sites, as well as the second hand market. This included a small number of very large schemes as well as a large proportion of smaller scale premises. $VKRUWDJHRIVXSSO\RIVXLWDEOHSUHPLVHVZLWKLQWKH&LW\·VH[LVWLQJ industrial estates, has encouraged many companies to relocate, sometimes out of the City altogether to Aberdeenshire towns like Kintore and Westhill, in order find larger units in locations that are better suited to light industry or manufacturing activities.

A number of new business and industrial parks are currently nearing completion or under construction in and around Aberdeen. During $EHUGHHQ·VSULPHLQGXVWULDOUHQWVUHPDLQHGWKHKLJKHVWLQWKH UK outside of London and the Thames Gateway. This may account for the fact that Aberdeen saw some significant speculative development coming forward in the industrial sector.

20 Page 138 Appendix 1

4.4 Trends in Employment Land

Figure 7 - Employment Land Development Rates 2003-2013

Hectares Aberdeen City Aberdeenshire 25

20

15

10

5

0 20032004 2005 20062007 20082009 20102011 2012 2013

Figure 8 - Trends in Marketable Employment Land in Aberdeen City and Aberdeenshire 2004-2014

Aberdeen City Aberdeen City Hectares Aberdeenshire and Aberdeenshire 600

500

400

300

200

100

0 20042005 2006 20072008 20092010 20112012 2013 2014

21 Page 139 Appendix 1

4.4.1 Figure 7 shows that Aberdeenshire has dominated the take-up of employment land in recent years, although this changed in 2013 with a substantial rise in take up in Aberdeen City where rapid development has taken place on many of the large employment sites allocated in the local development plan. A high level of completions is expected to continue next year as further sites are under construction, and it is hoped that other sites that have secured planning permission will also come forward depending on circumstances in the oil and gas industry.

4.4.2 Figure 8 shows that both Aberdeenshire and Aberdeen City had a steady amount of marketable land supply up until the adoption of the two local development plans in 2012, when the supply of marketable land increased significantly. The totals are expected to remain fairly steady at this higher level in the near future, as some sites allocated by the local development plans are developed and subsequently replaced by the progression of other sites into the marketable supply.

4.4.3 Additional information is included in Appendix 4 showing the provision of employment land according to three separate zones. These have arbitrary boundaries but roughly correspond to distance from Aberdeen City.

22 Page 140 Appendix 1 APPENDIX 1: GLOSSARY

Brownfield Sites Land which has been built on or used in the past for some development purpose. Brownfield land does not include private or public gardens, sports pitches, woodlands or open spaces used for leisure and recreation purposes. The grounds of institutions (such as schools and hospitals) that are no longer used are not considered as brownfield sites.

Constrained Employment Land Supply (Const) This includes land for example, that has planning difficulties, land subject to ownership difficulties (e.g. multiple ownership/unwilling sellers), land subject of local plan objections, land with insufficient infrastructure provision, etc. This category therefore includes much of the land in the Established Employment Land Supply that is not Marketable (see below).

Development Rates These refer to the sum of the net area of employment land that has been developed in a particular year. A site is considered to be developed once the first building has been constructed, even though further building may take place within the same site at a later date.

Employment Land This includes land for general industrial and business/office use, storage and distribution uses, business parks and specialist technology parks including research and development uses. This comprises Classes 4 (Business), 5 (General Industrial) and 6 (Storage or Distribution) of the 1997 Town and Country Planning (Use Classes) (Scotland) Order, but is not exclusive to these uses.

Established Employment Land Supply (Estab) This includes all undeveloped land that is allocated for industrial/business/ employment use in finalised or adopted Local Plans or has a valid planning approval for these uses.

23 Page 141 Appendix 1

Greenfield Sites Sites which have never been previously developed, or are fully restored derelict land.

Immediately Available Land Supply (Imm/Avail) This is marketable land that currently has planning permission or has a secure planning status, is serviced and has no other major constraints to immediate development. This definition is useful in the assessment of whether demand for land is being adequately met.

Marketable Land Supply (Market) This is land that as well as meeting business requirements, has a secure planning status, can be serviced within 5 years, is accessible by walking, cycling and public transport as defined by SPP. It is incumbent on the two planning authorities to ensure that a supply of marketable land is available throughout their areas at any one time, as set down in the Strategic Development Plan. Land that is subject to user restrictions or that is held as ¶RSWLRQODQG·IRUH[LVWLQJFRPSDQLHV·RZQH[SDQVLRQFDQQRWEHFRQVLGHUHGWR be marketable.

Serviced (Ser) The area of undeveloped land for which servicing has been provided either on the site itself or the wider site.

Under Construction (UC) The area of land under construction but not yet complete. This land is not included within the land supply totals.

24 Page 142 Appendix 1 APPENDIX 2: Employment Land Supply in Aberdeen City (all figures in hectares)

LOCATION DEVELOPER CONSTRAINTS SER ESTAB CONST MARKET IMM/AVAIL UC

Altens (38a Hareness Road) Private None Yes 0 0 0 0 0.9

Lochside/Newlands (Balmoral Business Pk) Balmoral Group None Yes 3.6 0 3.6 3.6 0

Aberdeen Gateway Halladale Muir Yes 3.5 0 3.5 3.5 0

Peterseat Forbes Development Ltd None Yes 6.9 0 6.9 6.9 0

Altens East & Doonies Esson Properties Part Planning Constraint Part 8.8 2.3 6.5 6.5 0

Aberdeen Science & Energy Park Scottish Enterprise Grampian Class 4 Only Yes 1.2 0 0 0 0

Aberdeen Innovation Park Scottish Enterprise Grampian Class 4 Only Yes 2.4 0 0 0 0

Findlay Farm Scottish Enterprise Grampian Class 4 Only No 13.1 0 0 0 0

The Core Berryhill/Cloverhill Private No 54.7 0 54.7 0 0 Page 143 Airport Dyce Drive Miller, Ribnort, Kilmartin, BAA Ownership & Infrastructure Part 59.3 24.1 35.2 28.3 25.8

Dyce Drive, 9 Dyce Avenue Morley Yes 0.9 0 0.9 0.9 0

Raiths, Dyce (Kirkton Drive) Private Yes 1.2 0 1.2 1.2 0

Wellheads West Private Noise & Height Restrictions Yes 1.4 0 1.4 1.4 0

OP12 Grandhome Grandhome Trust No 4 4 0 00

OP26 Craibstone North & Walton Farm Private No 1.2 1.2 0 0 0

OP28 Rowett North Private No 27.6 27.6 0 0 0

Prime Four Drum Part 26.4 0 26.4 13.2 6.8

OP45 Greenferns ACC No 8 8 0 00

OP46 East Arnhall Private No 0.64 0.64 0 0 0

OP58 Countesswells Countesswells Consortium No 8 8 0 00

O62 Oldfold CALA No 4 4 0 00

OP77 Loirston Private No 8.8 8.8 0 0 0

Total 245.64 88.64 140.3 65.5 33.5

25
Appendix 1

Aberdeen City Industrial and Business Areas 2013-14 From Aberdeen City Council Industrial Page 144 Areas Guide 2013-2014

26 Appendix 1 APPENDIX 3: Employment Land Supply in Aberdeenshire (all figures in hectares)

SETTLEMENT SITE Ref LOCATION ALDP Code MAIN DEVELOPER CONSTRAINTS SER ESTAB CONST MARKET IMM/AVAIL UC

BANFF AND BUCHAN

Aberchirder B/AB/E/001 Cornhill Road BUS1 Aberdeenshire Council Part 1 0 1 0 0

Cairnbulg/Inverallochy B/CI/E/001 Cairnbulg Harbour E1 Private Other Yes 0.51 0.51 0 0 0

Fraserburgh B/FR/E/002 West Shore BUS1 Aberdeenshire Council Yes 0.27 0 0.27 0.27 0

Fairney Hill Business Fraserburgh B/FR/E/003a Aberdeenshire Council No 1.88 0 1.88 0 0 Park Ph 2

Chapelhill Rosehearty/ Fraserburgh B/FR/E/003b BUS2 Private Infrastructure Part 10.9 10.13 0.77 0.77 0 Watermill

Fraserburgh B/FR/E/007 Fairney Business Park BUS1 Aberdeenshire Council Yes 1.18 0 1.18 1.18 0.89

Physical, Fraserburgh B/FR/E/008 Phingask E1 Private No 16.5 16.5 0 0 0 Marketability Page 145

Fraserburgh B/FR/E/009 Kirkton Development M1 Private Infrastructure No 4 4 0 0 0

Inverboyndie B/IB/E/002 Inverboyndie- Phase 1 BUS1 Private Yes 1.4 0 1.4 1.4 0

Inverboyndie B/IB/E/003 Inverboyndie- Phase 2 BUS1 Private No 1.4 0 1.4 0 0

Macduff B/MC/E/003 Tarlair Business Park BUS2 Aberdeenshire Council Yes 4.9 0 4.9 4.9 0

Macduff B/MC/E/004 Buchan Road- West BUS2 Private Ownership No 4.01 4.01 0 0 0

Macduff B/MC/E/005 Green Hills E1 Private No 12 0 12 0 0

Rosehearty B/RH/E/001 South of Ritchie Road M1 Private Infrastructure No 2 2 0 0 0

BANFF AND BUCHAN TOTAL 61.95 37.15 24.8 8.52 0.89

BUCHAN

Ardallie ALDP M1 (Land Ardallie U/AD/E/001 M1 Private No 0.3 0 0.3 0 0 at Nether Backhill)

Auchnagatt ALDP M1 Auchnagatt U/AG/E/001 M1 Private No 0.5 0 0.5 0 0 (Adj A948)

Crimond U/CM/E/001 Crimond ALDP E1 E1 Private No 6 0 6 00

27 Appendix 1

SETTLEMENT SITE Ref LOCATION ALDP Code MAIN DEVELOPER CONSTRAINTS SER ESTAB CONST MARKET IMM/AVAIL UC

Cruden Bay ALDP M1 Cruden Bay U/CR/E/001 (Land West of Golf M1 Private Other No 2 2 0 0 0 Road)

Hatton U/HT/E/001 Hatton ALDP E1 E1 A Wyness & Sons No 0.8 0 0.8 0 0

Longside - Longside U/LG/E/001 BUS1 Private No 1.2 0 1.2 0 0 Inverquhomery Road

Longside U/LG/E/002 Longside ALDP M1 M1 Chap Homes No 1.7 0 1.7 0 0

Mintlaw - Aden Mintlaw U/ML/E/003 BUS1 Aberdeenshire Council No 0.91 0 0.91 0 0 Business Park

Mintlaw ALDP M1 Mintlaw U/ML/E/005 M1 Bancon Homes Other No 5 5 0 0 0 (Nether Aden)

Peterhead U/PH/E/002 Peterhead - Balmoor BUS2 Aberdeenshire Council Yes 2.07 0 2.07 0.69 0

Page 146 Peterhead - Dales Peterhead U/PH/E/003 BUS3/BUS4 Aberdeenshire Council Part 10.17 2.4 7.77 3.48 0 Industrial Estate West

Peterhead - Dales Peterhead U/PH/E/004a BUS4 Private Part 1.71 0 1.71 1.71 0.8 Industrial Estate East

Peterhead - Damhead/ Peterhead U/PH/E/005a Upperton Industrial BUS4/BUS6 Private Part 4.16 0 4.16 0.25 0 Estate North

Peterhead - Energetica Peterhead U/PH/E/006 Industry Park (Upperton BUS6/BUS7 Scottish Enterprise No 16.6 0 16.6 0 0 Ind Est)

Peterhead U/PH/E/007 Peterhead - Wellbank BUS5 Score Group Ltd Part 26.94 0 26.94 0 0

Peterhead - Invernettie Peterhead U/PH/E/008 Roundabout/South Private Part 0.66 0 0.66 0.66 0 Road

Peterhead ALDP M1 Peterhead U/PH/E/009 M1 Private Other No 4 4 0 0 0 (Waterside)

Peterhead ALDP E1 Peterhead U/PH/E/010 E1 Score Group Ltd No 14 0 14 0 0 (Wellbank)

BUCHAN TOTAL 98.72 13.4 85.32 6.79 0.8

28 Appendix 1

SETTLEMENT SITE Ref LOCATION ALDP Code MAIN DEVELOPER CONSTRAINTS SER ESTAB CONST MARKET IMM/AVAIL UC

FORMARTINE

Balmedie F/BA/E/001 Eigie Farm South M1 Aberdeenshire Council No 5 0 5 0 0

Infrastructure, Blackdog F/BD/E/001 Blackdog M1 Private No 4 4 0 00 Other

Cuminestown Industrial Marketability, Cuminestown F/CT/E/001 BUS1 Aberdeenshire Council No 0.54 0.54 0 0 0 Estate Other

Ellon F/EL/E/005 Balmacassie South BUS1 Yes 5.38 0 5.38 5.38 0

Ellon F/EL/E/006 Cassiegills E1 Private No 9 0 9 00

Ellon F/EL/E/007 Cromleybank M1 Scotia Homes Other No 2 2 0 0 0

Foveran F/FV/E/001 South of Westfield M1 Harper & Cochrane Ltd No 2 0 2 0 0

Foveran F/FV/E/002 Roadside Croft E1 Private No 1.5 0 1.5 0 0

Page 147 Newburgh F/NB/E/002 Loanhead Phase 2 BUS1 Private No 1.96 0 1.96 0 0

Newburgh F/NB/E/007 East of Parkview M1 Private No 1.5 0 1.5 0 0

Oldmeldrum Business Oldmeldrum F/OM/E/003b Park/ Meadows BUS1 Private Part 1.94 0 1.94 0.74 1.6 Industrial Estate

North of Meldrum Oldmeldrum F/OM/E/005 M2 Private Other No 2.1 2.1 0 0 0 Academy

Ownership, Pimedden F/PM/E/001 Milldale East BUS2 Private No 1.58 1.58 0 0 0 Infrastructure

Rothienorman West of Rothienorman F/RO/E/002 BUS1 Private Marketability No 1.22 1.22 0 0 0 B9001

West of Rashiereive Rashiereive F/RR/E/001 E1 Private No 2 0 2 00 Cottages

Turriff F/TF/E/001 Markethill North BUS1 Aberdeenshire Council Yes 0.58 0 0.58 0.58 0

East of Markethill Turriff F/TF/E/004 BUS1 Private No 2.02 0 2.02 0 0 Industrial Estate

Turriff F/TF/E/005 South of Markethill Road BUS1 Ownership Yes 0.67 0.67 0 0 0

Turriff F/TF/E/007 Markethill Crofts North E1 Private No 1 0 1 00

29 Appendix 1

SETTLEMENT SITE Ref LOCATION ALDP Code MAIN DEVELOPER CONSTRAINTS SER ESTAB CONST MARKET IMM/AVAIL UC

Turriff F/TF/E/008 Markethill Crofts East E2 Private No 1.7 0 1.7 0 0

Turriff F/TF/E/009 Broomhill Road E3 Private No 4.5 0 4.5 0 0

Turriff F/TF/E/010 Balmellie Crofts M1 Private Other No 10 10 0 0 0

Tarves F/TV/E/003 Braiklay Cottages M1 Private Other No 3 3 0 0 0

Udny Station F/US/E/001 East of Woodlea Grove M1 Private Ownership No 1 0 1 0 0

Westfield F/WF/E/001 Westfield Foveran E1 Private No 2 0 2 00

FORMARTINE TOTAL 68.19 25.11 43.08 6.7 1.6

GARIOCH

Blackburn - Kinellar Blackburn G/BB/E/004 BUS Private Part 1.25 0 1.25 1.25 0 Business Park Page 148 Insch G/IS/E/005 Insch - Muiryheadless BUS Aberdeenshire Council Yes 2.36 0 2.36 2.36 0

Insch - South of Insch G/IS/E/006 BUS Private Ownership No 2.2 2.2 0 0 0 Muiryheadless

Insch G/IS/E/007 Insch ALDP E1 E1 Private No 5 0 5 00

Inverurie - Fairholme/ Inverurie G/IV/E/008 BUS3 Private Yes 0.6 0 0.6 0.6 0 Highclere

Inverurie ALDP M2 Private/Aberdeenshire Inverurie G/IV/E/012 M2 Yes 0.5 0 0.5 0 0 (Harlaw Road) Council

Crichie Dev Ltd/ Inverurie G/IV/E/013 Inverurie ALDP E1 E1 No 15.5 0 15.5 0 0 Dandara

Inverurie G/IV/E/014 Inverurie ALDP E2 E2 ANM Group Ltd No 1.5 0 1.5 0 0

Inverurie G/IV/E/015 Inverurie ALDP E3 E3 ANM Group Ltd No 10 0 10 0 0

Inverurie - Port Inverurie G/IV/E/016 BUS7 Kilbride Resources Ltd No 2.5 0 2.5 0 0 Elphinstone Central

Inverurie - Crichiebank Inverurie G/IV/E/017 BUS5 Private Part 1.05 0 1.05 0 0 Business Centre

Kemnay G/KM/E/002 Kemnay - Dalmadilly BUS1 Private Ownership No 4.3 4.3 0 0 0

Kemnay G/KM/E/004 Kemnay East BUS2 Private Part 2.8 0 2.8 0 0

30 Appendix 1

SETTLEMENT SITE Ref LOCATION ALDP Code MAIN DEVELOPER CONSTRAINTS SER ESTAB CONST MARKET IMM/AVAIL UC

Kingseat G/KS/E/001x Kingseat BUS1 Manor Kingdom Part 1 0 1 0 0

Kintore G/KT/E/002 Kintore - Midmill North BUS3 Private Yes 1.2 0 1.2 1.2 0.6

Kintore G/KT/E/002a Kintore - Midmill South BUS4/M1 Malcolm Allan Yes 0.95 0 0.95 0.95 0.58

Kintore G/KT/E/002b Kintore North/Bridgend BUS2 Private Physical No 5 2.5 2.5 0 0

Kintore G/KT/E/003b Kintore Business Park BUS1 Private Yes 0.6 0 0.6 0 0

Kintore G/KT/E/004 Kintore ALDP M1 M1 Kintore Consortium No505 00

Millbank Mixed Use Site Millbank G/MB/E/003 M1 Cluny Estates Infrastructure No 1.3 1.3 0 0 0 M1

Newmachar G/NM/E/003 Newmachar ALDP E1 E1 Kirkwood Homes No505 00

Westhill - Arnhall Westhill G/WH/E/007 BUS Private Yes 1.6 0 1.6 1.6 0.88 Business Park Ph2

Page 149 Westhill G/WH/E/008 Westhill ALDP E1 E1 Westhill Dev Co Ltd Part 7.84 0 7.84 0 1.76

GARIOCH TOTAL 79.05 10.3 68.75 7.96 3.82

KINCARDINE AND MEARNS

Auchenblae ALDP M1 Kincardineshire Auchenblae K/AU/E/001 M1 Other No 1 1 0 0 0 (Hillview) Investment Co

Drumlithie ALDP M1 Drumlithie K/DL/E/001 (Land Adj Bowling M1 Peterkin Homes Ltd No 0.5 0 0.5 0 0 Green)

Chapleton of Elsick - Chapleton of Elsick K/EL/E/001 New Settlement ALDP M1 Elsick Dev Co Ltd No 11.5 0 11.5 0 0 M1

Edzell Woods ALDP M1 Carnegie Base Marketability, Edzell Woods K/EW/E/001 M1 No 100 100 0 0 0 (Former Edzell Airfield) Services Infrastructure

Gourdon K/GD/E/001 Gourdon Business Park BUS Aberdeenshire Council Yes 1.48 0 1.48 1.48 0

Gourdon K/GD/E/002 Gourdon ALDP E1 E1 Private No 3 0 3 00

Laurencekirk - Mart Site Laurencekirk K/LK/E/004 Aberdeenshire Council Yes 0.26 0 0.26 0.26 0 West

Laurencekirk ALDP M1 Laurencekirk K/LK/E/005 M1 Kirkwood Homes No 11 0 11 0 0 (Conveth Mains)

31 Appendix 1

SETTLEMENT SITE Ref LOCATION ALDP Code MAIN DEVELOPER CONSTRAINTS SER ESTAB CONST MARKET IMM/AVAIL UC

Luthermuir K/LM/E/001 Luthermuir ALDP M1 M1 Private Other No 0.25 0.25 0 0 0

Luthermuir K/LM/E/002 Luthermuir ALDP M2 M2 Private Other No 0.25 0.25 0 0 0

Marykirk ALDP M1 Marykirk K/MK/E/001 M1 Private No 0.5 0 0.5 0 0 (West Park)

Newtonhill - West A&D Developments Newtonhill K/NH/E/001 BUS No 7.2 0 7.2 0 0 Monduff Farm (Scotland) Ltd

Newtonhill K/NH/E/002 Newtonhill ALDP E1 E1 Elsick Dev Co Ltd No 11.5 0 11.5 0 0

Portlethen - Badentoy Badentoy Portlethen K/PL/E/004 BUS1 Yes 11.46 0 11.46 0.4 3.42 Industrial Park Developments Ltd

Portlethen - City South Portlethen K/PL/E/005 BUS2 Dandara No 13 0 13 0 0 Business Park

Portlethen - Mains Of Page 150 Portlethen K/PL/E/006 BUS Private No 37 0 37 0 0 Cairnrobin

Portlethen K/PL/E/007 Portlethen - Moss Side BUS Private Part 3.09 0 3.09 0.62 0

Portlethen K/PL/E/008 Portlethen ALDP E1 E1 Private No 6.5 0 6.5 0 0

Portlethen K/PL/E/009 Porthlethen ALDP E2 E2 Private No 15.5 0 15.5 0 0

St Cyrus/Lochside ALDP St Cyrus K/SC/E/001 M1 Private Other No 2 2 0 0 0 M1 (Adjacent A92)

Stonehaven - East Stonehaven K/ST/E/003 BUS2 Bancon Developments No 11.31 0 11.31 0 0 Newtonleys

Stonehaven K/ST/E/004 Stonehaven ALDP E2 E2 Bancon Developments No 7 0 7 0 0

Stonehaven K/ST/E/005 Stonehaven ALDP E1 E1 Private No 1 0 1 00

KINCARDINE AND MEARNS TOTAL 256.3 103.5 152.8 2.76 3.42

MARR

Aboyne M/AB/E/004 Aboyne West M1 Private Other No 1 1 0 0 0

Alford M/AF/E/002b Alford Business Park M2 Kirkwood Homes No 0.72 0 0.72 0 0

Alford M/AF/E/003 Academy Site M1 Aberdeenshire Council Ownership Yes 1.2 1.2 0 0 0

Banchory M/BN/E/002 Hill of Banchory BUS1 Bancon Developments Yes 5.89 0 5.89 5.89 0.1

32 Appendix 1

SETTLEMENT SITE Ref LOCATION ALDP Code MAIN DEVELOPER CONSTRAINTS SER ESTAB CONST MARKET IMM/AVAIL UC

Banchory M/BN/E/003 Burn O'Bennie BUS2 Bancon Developments No 2.21 0 2.21 0 0

Banchory M/BN/E/004 Lochton of Leys M2 Private Other No 2 2 0 0 0

Huntly M/HT/E/002 Depot Road BUS2 RB Farquhar Yes 0.88 0 0.88 0.88 0

Muckle Torry Hillock Huntly M/HT/E/004a BUS1 Private No 1.75 0 1.75 0 0 North

Huntly M/HT/E/005 Mart BUS3 Private No 3.28 0 3.28 0 0

Huntly M/HT/E/006 Adj Linnorie E1 Private No 4.5 0 4.5 0 0

Kennethmont M/KM/E/001 Opposite School E1 Private No 0.6 0 0.6 0 0

Kincardine O'Neil M/KN/E/001 Dee Street M1 Private Other No 0.8 0.8 0 0 0

Kincardine O'Neil M/KN/E/002 Willowbank E1 Ownership No 0.8 0.8 0 0 0

Lumsden M/LD/E/002 Lumsden BUS Private No 0.3 0 0.3 0 0 Page 151 Muir of Fowlis M/MF/E/001 Muir of Fowlis BUS Private No 0.3 0 0.3 0 0

Rhynie Richmond Rhynie M/RN/E/001 BUS Aberdeenshire Council Yes 0.18 0 0.18 0.18 0 Avenue East

Rhynie Richmond Rhynie M/RN/E/002 M1 Private Other No 0.6 0.6 0 0 0 Avenue West

Tarland M/TL/E/002 Burnside Road M1 Private Other No 1 1 0 0 0

Torphins M/TP/E/001 South of A980 BUS Private No 1.22 0 1.22 0 0

MARR TOTAL 29.23 7.4 21.83 6.95 0.1

REPORT TOTAL 593.44 233.86 359.58 39.68 10.63

33 Appendix 1 APPENDIX 4: Aberdeen City and Shire Zones 1, 2 and 3 (all figures in hectares)

SETTLEMENT ESTAB CONST MARKET IMM/AVAIL UC

ZONE 1

Aberdeen City 245.64 88.64 140.3 65.5 33.5

Blackburn 1.25 0 1.25 1.25 0

Portlethen 86.55 37 49.55 1.02 3.42

Westhill 9.44 0 9.44 1.6 2.64

Zone 1 Total 342.88 125.64 200.54 69.37 39.56

ZONE 2 Page 152 Balmedie 5 0 5 0 0

Banchory 10.1 2 8.1 5.89 0.1

Chapleton of Elsick 11.5 0 11.5 0 0

Ellon 16.38 2 14.38 5.38 0

Inverurie 31.65 0 31.65 0.6 0

Kintore 12.75 2.5 10.25 2.15 1.18

Newburgh 3.46 0 3.46 0 0

Newmachar 5 0 5 0 0

Newtonhill 18.7 0 18.7 0 0

Olmeldrum 4.04 2.1 1.94 0.74 1.6

Stonehaven 19.31 0 19.31 0 0

Other Settlements 23.18 12.88 10.3 0 0

Zone 2 Total 161.07 21.48 139.59 14.76 2.88

34 Appendix 1

SETTLEMENT ESTAB CONST MARKET IMM/AVAIL UC

ZONE 3

Aboyne 1 1 0 0 0

Alford 1.92 1.2 0.72 0 0

Cruden Bay 2 2 0 0 0

Cumineston 0.54 0.54 0 0 0

Fraserburgh 34.73 30.63 4.1 2.22 0.89

Gourdon 4.48 0 4.48 1.48 0

Huntly 10.41 0 10.41 0.88 0

Insch 9.56 2.2 7.36 2.36 0 Page 153 Laurencekirk 11.26 0 11.26 0.26 0

Longside 2.9 0 2.9 0 0

Macduff 20.91 4.01 16.9 4.9 0

Mintlaw 5.91 5 0.91 0 0

Peterhead 80.31 6.4 73.91 6.79 0.8

Rothienorman 1.22 1.22 0 0 0

Turriff 20.47 10.67 9.8 0.58 0

Other Settlements 127.51 110.51 17 1.58 0

Zone 3 Total 335.13 175.38 159.75 21.05 1.69

Grand Total 839.08 322.5 499.88 105.18 44.13

35 Appendix 1 APPENDIX 5: Strategic Growth Areas and Regeneration Priority Areas in Aberdeenshire (all figures in hectares)

SETTLEMENT ESTAB CONST MARKET IMM/AVAIL UC

STRATEGIC GROWTH AREAS

Ellon-Blackdog 32.88 6 26.88 5.38 0

Peterhead-Hatton 81.11 6.4 74.71 6.79 0.8

Total 113.99 12.4 101.59 12.17 0.8

Huntly-Pitcaple 9.56 2.2 7.36 2.36 0

Inverurie-Blackburn 45.65 2.5 43.15 4 1.18

Page 154 Portlethen-Stonehaven 136.06 37 99.06 1.02 3.42

Sth of Drumlithie-Laurencekirk 11.26 0 11.26 0.26 0

Total 202.53 41.7 160.83 7.64 4.6

Aberdeen HMA Local Growth 36.92 12.28 24.64 2.34 4.24

Rural HMA Local Growth 240 167.48 72.52 17.53 0.99

Total 276.92 179.76 97.16 19.87 5.23

Report Total 593.44 233.86 359.58 39.68 10.63

REGENERATION PRIORITY AREAS

Regeneration Priority Area 153.74 45.55 108.19 16.79 1.69

Outwith Regeneration Priority Area 439.7 188.31 251.39 22.89 8.94

Report Total 593.44 233.86 359.58 39.68 10.63

36 Appendix 1

Rosehearty Strategic Growth and Regeneration Fraserburgh Priority Areas in Aberdeenshire Whitehills Portsoy Gardenstown Banff Macduff Banff and Buchan Strichen Aberchirder St Fergus Mintlaw Turriff Maud Peterhead Buchan

Strategic Growth Areas Huntly Fyvie

Formartine Cruden Bay

Regeneration Priority Areas Insch Ellon Rhynie Oldmeldrum Garioch Inverurie Newburgh Newmachar Page 155 Port Elphinstone Alford Balmedie Kemnay Kintore Blackdog

ABERDEENSHIRE Blackburn Marr ABERDEEN Westhill CITY

Torphins Aboyne Ballater Banchory Drumoak Portlethen

Braemar Newtonhill

Stonehaven Kincardine and Mearns

Fettercairn Laurencekirk Inverbervie Gourdon Johnshaven

Based on Ordnance Survey mapping. © Crown copyright reserved. Aberdeenshire Council 0100020767 2015. St Cyrus

37 Appendix 1 APPENDIX 6a: Development Rates in Aberdeen City (all figures in hectares) 7DEOHVLQFOXGHRQO\FRPSOHWHGGHYHORSPHQWVDQGH[FOXGHH[WHQVLRQVWRH[LVWLQJVLWHVVHH¶'HYHORSPHQW5DWHV·GHILQLWLRQLQ Appendix 1.

SITE LOCATION 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

1 Altens - - -0.6 ------3.0 - - - - -

2 Altens East ------2.6 - - 0.6 2.4 2.3 - 0.8 - -

3 East Tullos/Redmoss ------

4 Lochside/Newlands ------1.86

5 Peterseat - - - 1.2 2.0 1.3 - - - 2.4 2.4 - - - - -

6 Wellington Road - 0.6 - - - - - 0.7 ------

7 West Tullos ------Page 156 8 Aberdeen Gateway ------1.9 1.9 - - 7.75

Sub Total - 0.6 - 1.8 2.0 1.3 2.6 0.7 - 3.0 7.8 4.2 1.9 0.8 - 9.61

9 Links Road 0.6 0.3 - - 0.9 ------

10 Mastrick ------

11 Northfield ------

12 St Machar ------

Kingswells (Prime Four) ------6.8

Sub Total 0.60.3 - -0.9 ------

13 Bridge of Don ------

14 Denmore ------

15 Newton of Murcar ------

16 Aberdeen Energy Park - - - - - 0.4 - - 0.2 - 1.4 1.8 - 0.7 - -

17 Aberdeen Innovation Park 1.8 - - 0.4 ------1.3 - - - -

Sub Total 1.8 - - 0.4 - 0.4 - - 0.2 - 1.4 3.1 - 0.7 - 6.8

38 Appendix 1

SITE LOCATION 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

18 Dyce Drive (Morley) - - - 1.8 - - 2.0 - - - 3.8 - - - - -

19 Airport South West (Dyce Drive) ------0.8 0.56

20 Farburn/Stoneywood ------

21 Kirkhill 1.1 0.8 - - - 0.8 - - - - 0.9 - - - - -

22 Mugiemoss Road 1.2 ------

23 Pitmedden Road ------

24 Pitmedden Road East - - 0.8 - 1.2 - - - - - 0.8 - - - - -

25 Raiths 1.0 0.9 - 1.6 ------0.6 - -

26 Wellheads ------0.9 - - -

27 Wellheads West ------

Page 157 Sub Total 3.3 1.7 0.8 3.4 1.2 0.8 2.0 - - - 5.5 - 0.9 0.6 0.8 0.56

TOTALS 5.7 2.6 0.8 5.6 4.1 2.5 4.6 0.7 0.2 3.0 14.7 7.3 2.7 2.1 0.8 16.97

39 Appendix 1 APPENDIX 6b: Development Rates in Aberdeenshire (all figures in hectares) 7DEOHVLQFOXGHRQO\FRPSOHWHGGHYHORSPHQWVDQGH[FOXGHH[WHQVLRQVWRH[LVWLQJVLWHVVHH¶'HYHORSPHQW5DWHV·GHILQLWLRQLQ Appendix 1.

SITE LOCATION 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Alford 00.14 0 0 0 0 0 0 0 0 0 0

Balmedie 0 0 0 0 0.54 0 0 0 0 1.22 0 0

Banchory 0 0 0 0 0 0 0 0.63 3.26 0.93 0 0

Blackburn 0 0.28 0 0 0 0 0 0 0 0 0.76 2.13

Boyndie 0 0 0 0 0 0 0 0.78 0 1.94 3.29 0

Ellon 0 0 0.32 0.43 0 5.63 0 0 1.79 1.38 1.86 2.18

Fraserburgh 0 0 1.43 0 0 0 0 0 0 0 0 2.96

Gourdon 0 00.14 0 0 00.44 0 0 0 0 0 Page 158 Huntly 0 0 0 0 5.5 0 0 0 0 00.61 0

Insch 1.51 0.18 0 0 0 0.66 0 0 0 0.47 0.67 0

Inverurie 0 02.15 0 0.3 0 0 0 0 0 0 0

Kintore 2.86 3.22 0.39 0.24 0 1.12 0 2.7 0 7.79 2.06 2.99

Laurencekirk 0 0.63 0.32 0 0.08 0 0 0.4 0 0 0 0

Macduff 0 0 0 0.2 0 0 0 0 00.21 0 0

Mintlaw 0 0 0 0 0 0 0 0 0 00.31 0

Newburgh 0 0 0 0 0 0.78 0.46 0.15 0 0.24 0 0

Oldmeldrum 0.26 0 1.25 1.46 0.36 0 0 0 0 0.31 2.81 1.9

Peterhead 1.53 1.25 0.71 4.99 0 0.2 0.65 0.1 0 1.44 1.09 0

Port Elphinstone 0 0 0 1.43 0.85 1.33 0 0 0 0 0.9 0

Portlethen 0 0 5.64 0.8 10.6 4.4 1.27 0.7 2.36 0.28 0.28 0.39

Sauchen 000000000000

Turriff 0 0 00.17 0 01.53 0 0 0 0 0

Westhill 1.08 0 1.02 0.91 4.1 0.6 14.71 3.12 0.32 2.5 2.71 1.53

Report Total 7.24 5.7 13.37 10.63 22.33 14.72 19.06 8.58 7.73 18.71 17.35 14.08

40 Appendix 1

The Employment Land Audit is available from: www.acsef.co.uk www.aberdeencity.gov.uk www.aberdeenshire.gov.uk

ACSEF Aberdeen City and Shire Strategic Aberdeen City and Shire Development Planning Authority (SDPA) Economic Future 27-29 King Street Aberdeen AB24 5AA

Aberdeen City Council Aberdeenshire Council Scottish Enterprise Enterprise, Strategic Planning and Building Standards 41 Albyn Place Planning and Infrastructure Woodhill House Aberdeen Marischal College Westburn Road AB10 1YN Broad Street Aberdeen Aberdeen AB16 5GB AB10 1AB

Produced by Aberdeenshire Council GDT23318 March 2015 Page 159 This page is intentionally left blank

Page 160 Appendix 2

Cabinet Secretary for Social Justice, Communities and Pensioners’ Rights Alex Neil MSP

T: 0300 244 4000 E: [email protected] abcdefghijklmnopqrstu

Cllr Ramsay Milne In 2014 Scotland Welcomes the Chair World Aberdeen City and Shire SDPA

abc

___

11 December 2014

Dear Cllr Milne

PLANNING PERFORMANCE FRAMEWORK 2013/14

Thank you for submitting your authority’s annual Planning Performance Framework (PPF) report covering the period April 2013 to March 2014.

I am delighted to have planning within my portfolio and I am pleased to see that continued progress is generally being made across the country to improve planning performance.

Please find enclosed feedback on your 2013/14 PPF, which has been prepared by a Scottish Government contractor, and is based on the evidence provided within your report. Contact details for my officials are available in the feedback report should you wish to clarify any element of the contractors commentary. We will be publishing an Annual Performance Report in the new year which will summarise performance across the country against the key markers of performance.

The quality of PPF reporting has significantly improved with many PPF reports setting out a very clear story of how the service is operating and their priority actions for improvement. There is still some inconsistency in planning authority decision making timescales across the country and I look forward to seeing progress in the next set of performance statistics.

You will be aware that Section 55 of the Regulatory Reform (Scotland) Act commenced on 30 June 2014. It provides Scottish Ministers with powers to vary the planning application fee payable to different planning authorities where the functions of a planning authority are not being, or have not been, satisfactorily performed. The High Level Group on Performance has been considering the process which would be

Page 161 Appendix 2

used to determine if any authorities have not satisfactorily performed. It is hoped to finalise that process at our next meeting in February 2015. Please note that following the last meeting, the preferred option was to base the process on decision making statistics alone using the annual statistics for the period 2014/15. I shall write again to planning authority Heads of Planning in February to update them on discussions at the High Level meeting. COSLA, HOPS, SOLACE, SOLAR, the RTPI and key agencies are all represented on this group.

I am determined to keep up the momentum with the performance agenda, maintaining continual improvement and enhancing the reputation of our planning service. I look forward to working with you to achieve this shared goal.

Yours sincerely

ALEX NEIL

Cc: David Jennings, Strategic Development Plan Manager

Page 162 Appendix 2

PLANNING PERFORMANCE FRAMEWORK: 2013-14 FEEDBACK REPORT: Aberdeen City and Shire Strategic abcdefghijklmnopqrstu Development Planning Authority

Date performance report due: 30 September 2014 Date of receipt of report: 30 September 2014

National Headline Indicators · Your Strategic Development Plan (SDP) is up to date, having been approved by Scottish Ministers within the reporting period (28 March 2014). · You attributed a slight delay with the adoption of your SDP to the examination process. It is noted that this has subsequently impacted upon the delivery of service improvement activities for 2013-14, which have been carried forward. · Your development plan scheme for 2015-16 will be published in March 2015 and you intend to prepare the project plan for the second SDP during 2014- 15. Your next report should therefore provide detail of how your next SDP is being project planned to be delivered to timescales. · We again welcome the information you have provided in relation to housing land supply and employment land supply in the SDP area. · Your report explains how you have taken a holistic approach to the supply of housing and employment land in the SDP area to meet the predicted significant increase in housing and commercial development. This demonstrates an open for business approach which is based on certainty and providing confidence for future investment in your area.

Defining and measuring a high-quality planning service · Your focus on delivering high quality development through sustainable mixed communities is welcomed. It would be helpful if future reports could explain the concepts behind your approach and how this is being delivered through cross-sector engagement. The provision of examples and case studies could help explain this in more detail. · With the recent approval of your SDP, it is noted that the whole area is now covered by up-to-date development plans. This will contribute to certainty for developers and investors in your area. It is important that you continue to liaise with your two constituent authorities as they take forward their replacement Local Development Plans. · It is encouraging to note that you have continued to develop the scope and purpose of your website during the reporting period by including new items and publishing your responses to consultations. · We continue to support your commitment to the use of plain English, which is demonstrated through the achievement of ‘Crystal Mark’ status for your current SDP and Development Plan Scheme.

Page 163 Appendix 2

· The use of e-updates is welcomed as this should contribute towards engagement with a range of stakeholders. We note your service improvement commitment to carry out a customer survey to evidence the value of e-updates and look forward to hearing about the outcomes in your next report. · We note that your Action Programme will be prepared in the early part of 2014/15. It would be helpful if your next report included detail of how it has been prepared to instigate and deliver actions through engagement and partnership working with key agencies and lead partners. · The inclusion of a ‘Year Ahead’ section is useful and helped to describe your main priorities for the next reporting period. This includes re-publishing statutory supplementary guidance on ‘Delivering Identified Projects through a Strategic Transport Fund ’. We look forward to hearing about the progress you have made on this important piece of work in your next report, including how it supports proportionate and reasonable expectations for contributions to infrastructure. · You have clear structures in place to enable efficient and effective decision making. This includes regular meetings with Heads of Planning at Aberdeen City and Aberdeenshire Council’s , proactive elected member involvement, substitute elected members, and delegated powers. · The reference to good practice being shared during SDP manager meetings is welcomed, although this lacks details of the outcomes and benefits that have been delivered. Future reports need to explain this in more detail. · We welcome the reference to the Review of Strategic Development Plans and look forward to working with you and other SDP authorities to implement the actions.

Service improvements 2013-14: delivery · Due to the slight delay with the anticipated adoption of your SDP, we note that only one of your six service improvement commitments was completed during the reporting period with the rest carried forward to 2014/15.

Service improvement commitments 2014-15 · Your commitments for the year ahead reflect those carried forward from the previous year. We look forward to hearing about the progress you have made in your next report. · It would be helpful for future reporting if you could identify where possible, when your commitments are due to be completed.

Conclusion · Your report clearly recognises the importance of having an up-to-date SDP to provide certainty and confidence for future investment in your area. The submission of your SDP to Scottish Ministers within required timescales demonstrates a commitment to effective project management. · The revision of statutory supplementary guidance on ‘Delivering Identified Projects through a Strategic Transport Fund’ is an important work stream for the year ahead. We look forward to hearing about the progress you have made in your next report.

Page 164 Appendix 2

· You have carried forward service improvement commitments that should contribute to improving your service through lessons learnt and feedback from customer surveys. We look forward to hearing about the results.

The feedback in this report is based solely on the information provided within your Planning Performance Framework Report covering the period April 2013 to March 2014.

If you need to clarify any aspect of the report please contact us on 0131 244 7148 or email [email protected]

Please note that Planning Performance Framework Reports covering the period April 2014 to March 2015 are due to be submitted to the Scottish Government by 31 July 2015.

Page 165 Appendix 2

APPENDIX

PERFORMANCE MARKERS REPORT 2013-14

Name of planning authority: Aberdeen City and Shire SDPA

The High Level Group on Performance agreed a set of performance markers. We have assessed your report against those markers to give an indication of priority areas for improvement action. The high level group will monitor and evaluate how the key markers have been reported and the value which they have added.

The Red, Amber, Green ratings are based on the evidence provided within the PPF reports. Where no information or insuffici ent evidence has been provided, a ‘red’ marking has been allocated.

No. Performance Marker RAG Comments rating

6 Continuous improvement : Amber SDP up to date and approved within the reporting period (March 2014). · progress/improvement in relation to PPF National Some slight slippage, approximately 3 months, Headline Indicators; and with timescales, but SDP was submitted to · progress ambitious and relevant service Ministers within 4 year requirement. improvement commitments identified through PPF Majority of service improvement commitments report carried forward to 2014/15 due to delay in SDP timescales. Completion of these should be a priority for year ahead.

7 Strategic development plan less Green SDP was approved during the reporting period than 4 ye ars since approval (March 2014).

Replacement SDP was submitted to Ministers within required 4 year timescale.

8 Development plan scheme – next Green SDP only recently approved (March 2014) so SDP: work on second SDP is not scheduled to begin until the next reporting period. · on course for submission within 4 years of current Recently approved SDP project planned and plan’s approval; and approved within timescales, with only minimal · project planned and expected to be delivered to delay. planned timescale Development Plan Scheme scheduled to be published in March 2015. Next report needs to provide detail of how the next SDP will be project planned to be delivered to a planned timescale.

9 Elected members engaged early NA SDP only recently approved (March 2014). (pre -MIR) in development plan Next report should include details of how preparation – if plan has been at elected members have been involved in pre- pre-MIR stage during reporting year MIR engagement.

Page 166 Appendix 2

10 Cross sector stakeholders * NA SDP only recently approved (March 2014). engaged early (pre-MIR) in Next report should include details of how cross development plan preparation – if sector stakeholders (including industry, plan has been at pre -MIR stage agencies and Scottish Government) have been during reporting year involved in pre -MIR engagement.

*including industry, agencies and Scottish Government

13 Sharing good practice, skills and Amber Report refers to sharing good practice between knowledge between authorities other SDP authorities, but lacks detail on the outcomes and benefits that have been delivered as a result of this.

SDP manager raised importance of SDP and presented on challenges and opportunities within the SDP region to Scottish Young Planners conference in February 2014. Report also refers to presentation to Australian delegation.

Page 167 This page is intentionally left blank

Page 168 Appendix 3

Planning Performance Annual Report 2013 -2014

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Page 169 Appendix 3 Contents

Background Development Planning Development Plan Schemes Development Plan Pre-MIR Engagement Housing Land Employment Land Developer Contributions Development Management Decision Making Timescales Pre-Application Discussion Regular and Proportionate Policy Advice Processing Agreements Applications Determined Decision Making Timescales by Application type Decision Making Processes Delegation Committees and Local Review Bodies Approval Rates Legacy/Stalled Sites Legal Agreements Enforcement Corporate working ePlanning Continuous Improvement and Sharing Good Practice Staffing / Workforce Conclusion Appendix 1 - Strategic Development Plan Authorities Appendix 2 - Key Agencies Appendix 3 – Performance Markers

The infographics contained within this report were produced using

Infogr.am

Page 170 Appendix 3 Background

A strong, well-functioning planning service is vital for the long term, sustainable economic growth of Scotland.

Since 2011/12 planning authorities, strategic development plan authorities and Key Agencies have all completed an annual report based on the template devised by Heads of Planning Scotland. This framework provides authorities with a vehicle to set out their achievements over the year and their commitments to improve in the following year. This is the third year of submission and this year, for the first time, we have produced additional appendices to this report showing SDPA (appendix 1) and Key Agency (appendix 2) performance – these have been kept separate as some of the performance markers do not cover areas within their remit. The information contained in this report reflects not only what authorities have told us but the feedback they have received from the Scottish Government on their performance against the 15 Performance Markers established by the High Level Group on Planning Performance. A copy of these markers can be found at appendix 3.

The reporting period ran from 1 April 2013 to 31 March 2014 and the feedback was provided to authorities in two parts, qualitative feedback on the reports and a ‘red, amber, green’ (RAG) rating against the 15 Performance Markers. For the purpose of the reports the following criteria is applied to each rating:

RED - Where no information or insufficient evidence to meet the markers has been provided, a ‘red’ marking is allocated.

AMBER - An amber marking shows that some evidence has been provided and that work is on- going in the area, with further improvements needed; or that there is a commitment to move this work forward.

GREEN - Green signifies that an authority is meeting the requirements of the marker on all levels.

This year has seen an overall improvement by authorities across all the key markers with the number of red markings halving this year. The number of amber ratings have remained static whilst there has been a marked improvement in the number of authorities who received green ratings. This is encouraging, although it is still a concern to see that some individual authorities are struggling to deliver continuous improvement in key areas. Certainly within the decision making category this lack of progress in some authorities is impacting considerably on the wider Scottish averages for decision making timescales.

Page 171 Appendix 3 Appendix 1

STRATEGIC DEVELOPMENT PLAN AUTHORITIES – ANNUAL REPORT

This is the first Annual Report of the Strategic Development Plan Authorities (SDPAs) Planning Performance Framework (PPF) reports which covered the period April 2013 to March 2014.

All 4 SDPAs provided reports. The SDPAs are: · Aberdeen City and Shire · Glasgow and Clyde Valley SDPA (now ClydePlan) · SESplan · Tayplan

Part 1 of this report provides a summary of the 6 performance markers which are applicable to the SDPAs. Commentary is provided on the themes emerging and the aspects that should be addressed in future reports.

Part 2 provides a summary of the information provided in the ‘Defining and Measuring a High Quality Planning Service’ section of the SDPAs PPF reports.

Continuous Improvement - Performance Marker 6

2012-13 2013-14 0 3 1 0 1 3

Ratings for this marker are based on the Strategic Development Plan (SDP) being up to date and on course for submission to Scottish Ministers within the required 4 year period. Progress on previous (2012/13) service improvement commitments and the relevance of service improvement commitments for next reporting period (2014/15) are also assessed.

It can be seen that performance has improved. This is attributed to the progress made in completing previous service improvement commitments and setting out ambitious commitments for the next reporting period. Our feedback highlighted, where necessary, that future service improvement commitments should be specific, measurable and include a completion date.

Strategic Development Plan - Performance Marker 7

2012-13 2013-14 0 0 4 0 0 4

This marker is based on whether it has been less than four years since the approval of the Strategic Development Plan. All 4 SDPAs continued to achieve a green rating for this marker as their SDPs remain up to date.

Page 172 Appendix 3 Development Plan Scheme - Performance Marker 8

2012-13 2013-14

0 0 4 0 0 4

This marker is based on whether the next SDP is on course for submission to Scottish Ministers within 4 years of the current plan’s approval and whether it is project planned to be delivered to a planned timescale.

All of the SDPAs continued to achieve a green rating for this marker. The reports provided a strong commitment to project management to ensure timescales are met. Examples included the use of PRINCE 2 and Gantt charts. We suggested that SPDAs share good practice of their project management achievements more widely for the benefit of others.

Elected Members Engaged Early at pre-MIR Stage - Performance Marker 9

2012-13 2013-14

- - - 0 2 1

This year three of the SDPA’s had commenced working on their next SDP, with one due to begin in the next reporting period. Two amber ratings and one green rating were given.

For the amber ratings, our feedback emphasised that future reports need to clearly set out the steps the SDPAs are taking to engage early in the SDP process with elected members. One report received a green rating by referring to a range of pre-MIR elected member engagement. This included the circulation of e-newsletters, briefing of joint committee members and ratification by constituent council of key joint committee decisions.

Cross Sector Stakeholders Engagedgage Early y (pre-MIR)(p ) - Performance Marker 10

2012-13 2013-14

- - - 0 2 1

Although a strong commitment to engagement was emphasised in all of the reports, some lacked specific detail of the measures being taken to engage with cross sector stakeholders (industry, agencies and Scottish Government) at the pre-MIR stage. Our feedback emphasised that future reports need to explain this in more detail.

Page 173 Appendix 3 Sharing Good Practice, Skills and Knowledge - Performance Marker 13

2012-13 2013-14

0 2 2 0 4 0

The number of green ratings given for this marker has deteriorated since the last reporting period. Whilst the reports commented that good practice is shared between SDPAs and planning authorities, we found they lacked detail of the issues discussed, and the outcomes and benefits delivered.

Our feedback highlighted that future reports need to provide greater detail and evidence of how good practice, skills and knowledge is shared. The inclusion of specific examples or case studies could be a possible way of evidencing this marker.

Overall RAG Ratings for SDPAs - 2012/13 & 2013/14

2012-13 2013-14

0 5 11 0 9 13

The 6 additional markings given in 2013/14 were a result of 3 SDPAs commencing pre-MIR engagement (performance markers 9 and 10).

In conclusion, it can be seen from the above table that overall performance has remained positive for the SDPAs when compared with the last reporting period. The slight increase in the number of amber ratings can be attributed to the lack of evidence provided for performance markers 9, 10 and 13.

Part 2 of the PPF Report - Defining and Measuring a High Quality Planning Service – Summary

Open for Business

An open for business approach to delivering the SDP through engagement and collaborative working was demonstrated in all of the reports. There was also an emphasis on the importance of delivering Action Programmes. Our feedback highlighted that future reports should aim to supplement this section with some detailed examples or case studies of actions delivered and the outcomes.

High Quality Development on the Ground

The reports made a clear commitment to focus on delivering high quality development. There was a general feeling that it would be helpful if future reports provided more detail of how the SDP sets the context for delivering high quality development on the ground with constituent authority LDPs. The inclusion of examples or case studies, would be welcomed.

Page 174 Appendix 3

Certainty

The reports emphasised the important role of having an up to date SDP to provide certainty and attract investment into SDPA areas. We felt that additional evidence could have been provided to demonstrate how SDPA engagement and support for constituent authorities is informing the progress of their LDPs.

There was a commitment made within the reports to align the next round of SDPs with NPF3 and SPP. We look forward to hearing how this has progressed in future reports.

Communications, Engagement and Customer Service

All SDPAs are being proactive to engage and communicate with the public through a range of social media. We were encouraged to hear this was resulting in more people being engaged in the SDP process. For example, one report highlighted a significant increase in website visitors and twitter followers during the period.

SDPAs are continuing to look at ways to improve their communication and engagement. Examples included a commitment to the use of plain English, easy read versions of documents, Crystal Mark status and website redesign. Efficient and Effective Decision Making

All of the reports highlighted that clear structures are in place to enable efficient and effective decision making. Some SDPA’s reviewed the effectiveness of decision making structures during the reporting period and highlighted that this had helped to clarify roles and responsibilities.

Culture of Continuous Improvement

A commitment to a culture of learning and improving was demonstrated through a range of measures that had been identified and delivered by SDPAs. A number of reports provided details of staff development, appraisal and training. Two SDPAs had a customer survey planned for the next reporting period, whilst another had developed a lessons learnt log to use in the next SDP process.

We were encouraged to see that all of the reports made a commitment to work with other SDPAs and the Scottish Government to take forward the actions and recommendations contained in the Review of Strategic Development Plans in Scotland (April 2014). We look forward to hearing about the new approaches and improvements which have been achieved in future reports.

Page 175 Appendix 3 Appendix 3

PLANNING PERFORMANCE FRAMEWORK: PERFORMANCE MARKERS FOR PLANNING AUTHORITIES

No. Performance Marker Decision -making : continuous reduction of average timescales for all development categories [Q1 - Q4] 1 Processing agreements : 2 · offer to all prospective applicants for major development planning applications; and · availability publicised on website Early collaboration with applicants and consultees 3 · availability and promotion of pre-application discussions for all prospective applications; and · clear and proportionate requests for supporting information Legal agreements : conclude (or reconsider) applications after resolving to grant permission 4 · reducing number of live applications more than 6 months after resolution to grant (from last reporting period) Enforcement charter updated / re-published within last 2 years 5

Continuous improvement : 6 · progress/improvement in relation to PPF National Headline Indicators; and · progress ambitious and relevant service improvement commitments identified through PPF report

7 Local development plan less than 5 years since adoption Development plan scheme – next LDP: 8 · on course for adoption within 5 years of current plan(s) adoption; and · project planned and expected to be delivered to planned timescale Elected members engaged early (pre-MIR) in development plan preparation – if plan has been at pre-MIR 9 stage during reporting year Cross sector stakeho lders * engaged early (pre-MIR) in development plan preparation – if plan has been 10 at pre -MIR stage during reporting year

*including industry, agencies and Scottish Government Regular and proportionate policy advice produced on: 11 · information required to support applications; and · expected developer contributions Corporate working across services to improve outputs and services for customer benefit (for example: 12 protocols; joined-up services; single contact arrangements; joint pre-application advice) Sharing good practice, skills and knowledge between authorities 13 Stalled sites / legacy cases : conclusion or withdrawal of old planning applications and reducing number of 14 live applications more than one year old Developer contributions : clear and proportionate expectations 15 · set out in development plan (and/or emerging plan); and · in pre-application discussions

Page 176 Appendix 4

Strategic Planning: Effective Cooperation for Planning Across Boundaries

January 2015

Policy Paper www.rtpi.org.uk Page 177 Appendix 4

About the RTPI’s policy and research work

In its Centenary Year the Royal Town Planning Institute (RTPI) representing 23,000 members worldwide working in the public, private, charitable and educational sectors is the largest professional institute for planners in Europe. The RTPI shapes policy, works to raise professional standards and supports members through education, training and development. As well as promoting spatial planning, the RTPI develops and shapes policy affecting the built and natural environment, works to raise professional standards and supports members through continuous education, training and development. Everything we do is inspired by our mission to advance WKHVFLHQFHDQGDUWRISODQQLQJIRUWKHEHQH¿WRIWKH public.

2XUSROLF\DQGUHVHDUFKZRUNUHÀHFWVWKLVPLVVLRQ,Q addition to this policy paper on strategic planning, we have already published papers on large scale housing, transport infrastructure and fostering economic growth. This year also has seen publication of our Planning Horizons series of extended essays on global issues concerning cities, people and the environment in the next 100 years.

For further information about our work, please see: www.rtpi.org.uk/knowledge

Trudi Elliott CBE Chief Executive, RTPI

Strategic Planning: Effective cooperation for planning across boundaries

This report was written by Richard Blyth MRTPI, with support from Craig McLaren MRTPI, Nikola Miller MRTPI and Roisin Willmott MRTPI 1 Page 178 Appendix 4 Strategic Planning: Effective cooperation for planning across boundaries

Contents

Executive summary page 03

Case studies page 05

Introduction page 06

Foundations for strategic planning page 07

&RRSHUDWLRQEHWZHHQORFDOJRYHUQPHQWVEULQJVPDMRUEHQH¿WV page 09

$UUDQJHPHQWVIRUVWUDWHJLFSODQQLQJEHQH¿WIURPEHLQJORFDOO\GHVLJQHG page 11

Strategic planning needs to cover a wide range of areas of public policy page 13

6WUDWHJLFSODQQLQJZRUNVZHOOLILWKDVVWURQJORFDOSROLWLFDOEX\LQ page 15

Close links with business are vital page 17

Cooperation needs to reach beyond the boundaries of a strategic planning area page 19

General principles for strategic planning page 21

Country recommendations page 23

Acknowledgements page 33

Page 179 2 Appendix 4

Executive summary

Managing housing markets, transport networks, One reason why effective strategic planning can be unduly limited is in failing to achieve deep political river basins, energy supplies, and investment in involvement. Evidence in this report from the Tay region VNLOOVQHHGVFRRUGLQDWLRQDFURVVDZLGHUDUHDWKDQ strategic planning area in Scotland and South East Queensland shows examples of how strategic planning a single local government area. The solution is ZRUNVZHOOLILWKDVVWURQJORFDOSROLWLFDOEX\LQ7KLVFDQ strategic planning. be a big challenge to professionals, as it faces head on the local/wider question at the heart of the need for strategic planning.

Around the world, and in the UK and Ireland, the critical Whilst all local stakeholders and the public are important challenge of marrying local concerns and wider issues in plan preparation, engagement of business can not only DFURVVFLW\UHJLRQVDQGRWKHUDUHDVLVEHLQJIDFHGLQ be elusive but also critical. If businesses seek to exercise a number of ways. Spatial planning is a discipline and LQÀXHQFHRQO\DIWHUWKHSODQKDVEHHQGUDIWHGWKLVFDQEH profession which is critical to this process. On the one prejudicial to effective implementation. Looking at South hand how we respond to this challenge has a strong East Wales, Lancashire and the Black Country we show LQÀXHQFHRQKRZHIIHFWLYHVSDWLDOSODQQLQJLV2QWKH how close links with business are vital. other, spatial planning provides sound insights into ,WLVQRWKRZHYHUDOZD\VSRVVLEOHWR¿QGDFRPPRQ ¿QGLQJVROXWLRQV geography for each of these activities. Some issues Through workshops with stakeholders around the UK require planning over larger areas than that of the main and Ireland, and through background research, the strategic planning function. So cooperation needs to reach Royal Town Planning Institute (RTPI) has looked at beyond the boundaries of the core strategic planning how planning has worked to cross council boundaries area. This can be achieved by having mechanisms for in a number of settings, such as, for example an area further cooperation between area groupings. centred around the core area of a city but including its General principles surroundings. Through the work for this report and the experience of We found that cooperation between local authorities our members we have devised various general principles EULQJVPDMRUEHQH¿WVWRDOORIWKHFRXQFLOVLQDJLYHQ which strategic planning should follow irrespective of area: we looked at evidence from Northern France where it is practised. Strategic planning should: and Greater Manchester (England) and found that establishing informal channels of cooperation across ɿ +DYHIRFXVEHLQJHI¿FLHQWLQWKHXVHRIUHVRXUFHV wider civil society was a key factor in success. and clear about its purpose;

Following the principle of subsidiarity, it is clear that ɿ Be genuinely strategic – dealing only with matters DUUDQJHPHQWVIRUVWUDWHJLFSODQQLQJEHQH¿WIURPEHLQJ which require resolution across boundaries; ORFDOO\GHVLJQHG+RZHYHUPDQ\QDWLRQDOJRYHUQPHQWV ɿ Be spatial – i.e. it should make choices between have not always followed this advice. We looked at places, not simply establish general criteria for later examples from three parts of England where contrasting decision making; forms of successful local design of cooperative arrangements can be found. ɿ %HFROODERUDWLYHPHDQLQJWKDWSDUWQHUVZRUNWRJHWKHU to see how they can deliver each other’s agendas; Many attempts at successful strategic planning have ÀRXQGHUHGGXHWRLQVXI¿FLHQWO\ZLGHVFRSH2XUUHSRUW ɿ Have strong leadership – so that negotiations between shows that strategic planning needs to cover a wide places are productive and not protracted; range of areas of public policy. This is illustrated by reference to Glasgow & Clyde Valley and Greater ɿ Be accountable to local electorates. /RQGRQZKHUHPRUHWKDQVLPSOHODQGXVHUHJXODWLRQLV brought into the strategic planning process.

3 Page 180 Appendix 4 Strategic Planning: Effective cooperation for planning across boundaries

7KH573,RSHUDWHVLQDOO¿YHQDWLRQVRIWKH8.DQG Ireland. The challenge of achieving cross boundary FRRSHUDWLRQH[LVWVLQDOO¿YHQDWLRQVWRGLIIHUHQWGHJUHHV and despite different legal and political situations. We make recommendations for each nation:

ɿ For England the focus should be on the need for proper incentives to achieve strategic planning where the duty to cooperate has not been effective, and to build on the momentum to harness the potential of the city regions;

ɿ In Scotland the emphasis needs to build on the well established framework of strategic plans by embedding investment programmes for their areas and better connected to Single Outcome Agreements;

ɿ In Wales strategic plans being brought forward WKURXJKWKH¿UVW3ODQQLQJ%LOO$IRFXVLVQHHGHGRQ integrated and inclusive plans which are robust yet ÀH[LEOHDQGUHÀHFWUHDOFRPPXQLWLHVRILQWHUHVW

ɿ In Northern Ireland action must be centred round the Review of Public Administration and how this works within the Regional Development Strategy;

ɿ In Ireland the new Regional Spatial and Economic 6WUDWHJLHVZLOOQHHGWRLQÀXHQFHDQGFRQWULEXWHWR other government strategies and the plans of state development agencies.

Page 181 4 Appendix 4

Case studies found within the report

1 /LOOH0HWURSROH page 09 11 Black Country page 18

2 Greater Manchester page 10 12 North Of England page 19

3 Cambridgeshire page 11 13 Irish Central Border Network page 20

4 Greater Birmingham & Solihull page 12 14 South East Queensland page 16

5 South Hampshire page 12

6 Glasgow & Clyde Valley page 13

7 Greater London page 14

8 TAY Plan page 15

9 South East Wales page 17 8 10 Lancashire page 18

France 1 14 6 Australia

2 13 10 12

4

11

3

9 7

5

5 Page 182 Appendix 4 Strategic Planning: Effective cooperation for planning across boundaries

Introduction

$ORQJVWDQGLQJFRQFHUQIRUSODQQHUVLQWKH8.,UHODQG DQGIXUWKHUD¿HOGKDVEHHQKRZ\RXORRNDWWKHELJJHU picture and identify and manage the needs of wider areas ±EHWKH\FLW\UHJLRQVFRXQWLHVRUODUJHUDUHDVVXFKDV water catchments.

This is because people and goods cross local boundaries YHU\UHJXODUO\DQGIHZRIRXUWRZQVDQGFLWLHVDUHVHOI contained entities. More recently this issue has become more critical with an increasing challenge to cities of all sizes to compete globally. No longer can an area take refuge under the wings of a benevolent state. The more successful ones will be those which can organize themselves and their partners in their surroundings in the most successful ways. In most of the world this has to be achieved through cooperation between councils (municipalities) as most urban governments work at fairly local scale.

7KLVLVVXHLVDOVRRIVSHFL¿FFXUUHQWLPSRUWDQFHWRWKH nations of the UK and Ireland as a consequence of recent political and administrative changes which (to varying degrees) have thrown the issue of strategic planning into sharp focus. This includes the abolition of regional strategies in England, the creation of new local authorities in Northern Ireland, the review of strategic planning in 6FRWODQGDQGWKHFRQVLGHUDWLRQRIWKH¿UVW3ODQQLQJ%LOOLQ Wales. In Ireland the way planning will work under new regional and local government arrangements is currently a matter for discussion.

When setting out this piece of work we asked stakeholders from a range of backgrounds what is working effectively and what can be improved upon. Within the report we explore the fundamentals of strategic planning, and identify areas where certain techniques have worked well elsewhere and may be able to be implemented more widely. We end by making recommendations to the governments of the UK and Ireland.

Page 183 6 Appendix 4

Foundations for strategic planning

Why it is important to link cities and their These are issues which are of core concern to the RTPI. surroundings The issue of spatial policies is concerned with the problem WKDWSHRSOHRULHQWHGDJHQGDVVXFKDVHGXFDWLRQVNLOOV 7KHIXWXUHZHOOEHLQJRIFRPPXQLWLHVDQGWKHFUHDWLRQ housing, health and social services have been driven by national institutions concerned to ensure uniform provision of more and better jobs in a competitive economy is but consequently poorly adapted to local urban contexts. being put at risk by the failure to integrate fully the This is the focus of a report 3 in our Centenary Planning Horizons series . provision of housing and necessary infrastructure and 4 services across local authority boundaries. Another Planning Horizons report has covered matters RI¿QDQFHJRYHUQDQFHDQGLQVWLWXWLRQVIRUFLWLHV$FULWLFDO question is the need for different layers of government (national, city and neighbourhood) to be properly There is increasing recognition that a nation’s prosperity is empowered for their respective tasks and to work dependent on its cities’ success. In many countries cities together effectively. It is equally important for the different produce more output per worker than average and more sectors with responsibility for policies in urban areas to output within growing economic sectors. They can also work together within those places. As far as citizens are more be environmentally sustainable, with for example concerned, what matters is their entire experience, not the 8.FLWLHVSURGXFLQJOHVVFDUERQHPLVVLRQVWKDQQRQ administrative convenience of different silos. This issue city areas. 1 is a particular challenge where individual sectors have pursued policies of large scale privatisation. And it is not just cities in isolation – the way in which cities are connected to each other within nations and The question of suitable subnational government is of internationally is of critical importance. But in addition the importance across Europe with the European Commission functioning of cities depends on relationships with areas requiring the involvement of different tiers of government 5 immediately surrounding them. Geographers call these in its funding programmes. ‘functional economic areas’. They are also known as ‘city 7KLVSDSHULVFRQFHUQHGZLWKKRZFLW\UHJLRQVIDFH regions’. Relationships within these areas include obvious up to the challenges of adapting their governance to RQHVVXFKDVFRPPXWLQJEXWDOVREXVLQHVVWREXVLQHVV IXQFWLRQDOJHRJUDSKLHV7KURXJKRXWWKHKLJKLQFRPH relationships, and connections between major institutions countries of the world this question is a major priority. such as universities and hospitals and the areas in which Clark and Clark point out that the direct solution of simply they are located. UHGUDZLQJERXQGDULHVWRUHÀHFWIXQFWLRQDOJHRJUDSK\LV However in many countries around the world, including UDUHO\DGRSWHGDVLWLVXQSRSXODUH[SHQVLYHDQGGLI¿FXOW Britain and Ireland, the political facts of such relationships to get right. On the other hand the imposition of a two tier GRQRWUHÀHFWWKHHFRQRPLFDQGVRFLDOUHDOLWLHVRQWKH metropolitan system is often resisted by existing lower JURXQG6XFKLVWKHLQFUHDVLQJVLJQL¿FDQFHRIFLWLHV±DQG tiers. The most common solution around the world is one particular the growing understanding that cities compete form or other of innovation whereby local governments 6 with each other around the world, that such political enter into partnerships. Whilst arising from a wider GLI¿FXOWLHVDUHEHFRPLQJPDWWHUVRIQDWLRQDOSULRULW\ discussion within public policy, this is an issue of profound 7KH2(&'KDVLGHQWL¿HG¿YHSKHQRPHQD 2 that must be importance for urban planning in particular, and at this tackled to achieve the optimal performance of cities – juncture in most of the UK and Ireland. and, it should be recalled, this city performance is a key Many matters such as managing river basins, planning determinant of national economic performance (and also UHQHZDEOHHQHUJ\SURYLGLQJVXI¿FLHQWDQGDIIRUGDEOH of national social and environmental performance). housing across a commuting area, ensuring transport These are: OLQNVDUHVXI¿FLHQWUHVSRQGLQJWRFOLPDWHFKDQJHDQG guiding strategic investment in health, education and ɿ)LQDQFHDQG¿VFDOSROLFLHV training need coordination across a wider area than a ɿ-RLQHGXSJRYHUQDQFH single local authority. ɿ Governance for functional geographies ɿ Instutional structure and frameworks

1 Centre for Cities Cities Outlook 2014 3 Thinking Spatially, RTPI June 2014 2 Rt Hon Greg Clark and Greg Clark, Nations and the Wealth of 4 Making Better Decisions for Places, RTPI, November 2014 Cities, Centre for London 2014 p21 5 E.g. Regulation 1313/2013 Art. 5 7 Page 1846 Clark and Clark 2014 p 23 Appendix 4 Strategic Planning: Effective cooperation for planning across boundaries

Whilst there is some good practice in some countries which jobs were lost from cites across the board and grew and in some places, this is not happening as much as it very substantially in small towns, and the consequences should. The solution is what we call strategic planning of having a small land area, which means that few areas i.e. planning across local authority boundaries. are remote at all.

³6XFFHVVIXOFLW\HFRQRPLHVQHHGHI¿FLHQWWUDQVSRUW All this means that: skilled workers, quality housing, good public space and ɿ International comparisons can only go so far in seeking amenities. But city economies don’t stop at local authority the best governance and practice arrangements for strategic spatial planning in the UK and Ireland. boundaries… 50% of commuters live and work in different local authorities” 7 ɿ Different arrangements are likely to be appropriate in the different countries of the UK and Ireland. Not only cities Whilst the world is increasingly one in which city regions ɿ Different arrangements are likely to be needed even compete, issues of strategic planning are not limited within our nations. VSHFL¿FDOO\WRFLWLHVDQGWKHLULPPHGLDWHVXUURXQGLQJV Solutions need to work in urbanised and less Throughout the UK and Ireland the towns and countryside ɿ urbanised areas, and may need to differ between are also critical to economic growth. And in these areas them. the issues of coordination across boundaries are no OHVVVLJQL¿FDQWWKDQLQFLWLHV7KLVFDQEHWUXHLQUHODWLRQ to remote areas, where the issue may be how to draw In the central part of this paper we show examples of together strong support across an area for lobbying models for strategic planning at home and abroad, and for investment in competition with vocal cities. In rural areas close to cities the issue is how to represent and KDYHLGHQWL¿HGYDULRXVFKDUDFWHULVWLFVRIHIIHFWLYHSUDFWLFH coordinate areas whose voice is potentially overshadowed by strong neighbours.

In both these situations, the effectiveness of cooperation within the more rural regions is critical. This is both EHFDXVHDMRLQHGXSYRLFHLVVWURQJHUEXWDOVREHFDXVH it is more credible. If there are questions around the shortage of land for development, a strong indication that the area in question has resolved local disputes around this issue will add credibility to its interactions in the wider world. This also works in reverse: where certain kinds of development are sought after, rather than resisted, again consensus within a strategic planning area on where WKLVLQYHVWPHQWLVWRJRWRPXWXDOEHQH¿WZLOOYHU\PXFK increase the case for having it.

In the UK, uniquely among rich nations, the economic SHUIRUPDQFHRIWKHQRQFLW\SDUWRIWKHFRXQWU\LVEHWWHU than the city part (if London is excluded). For example if the “Core Cities” in England performed at the national average, they would put £1.3 billion extra into the economy every year. 8 This is one reason for perhaps YLHZLQJWKHQRQFLW\SDUWRIWKHFRXQWU\LQDGLIIHUHQW light from how it is viewed in much of Continental Europe, where a key concern is with the prosperity of remote regions. The reasons for this are a very strong counterurbanisation trend from 1920 to around 1990 in

7 Breaking Boundaries, Centre for Cities 2014 8 Core Cities Prospectus, 2013 Page 185 8 Appendix 4

Cooperation between local governments brings PDMRUEHQHÀWV

Within any potential area for strategic planning the %XWFUHDWLQJQHZMREVLQ/LOOHZRXOGQRWQHFHVVDULO\EHQH¿W the communities where the jobs were most being lost. So success of the enterprise will depend on it being WKHRWKHUFRPPXQLWLHVZHUHHQDEOHGWREHQH¿WWKURXJK worthwhile for all participants to engage. This can the creation of excellent public transport which enabled be a major challenge, especially where there is FLWL]HQVWRSDUWLFLSDWHLQWKHJURZWKRI/LOOH$NPPHWUR line was built from Lille to Roubaix and Tourcoing making a central city surrounded by more rural areas or Roubaix only 20 minutes from Lille centre. In addition the Communauté funded city centre renewal and housing RXWO\LQJWRZQVDVWKHQRQFLW\DUHDVFDQVRPHWLPHV renewal projects there. SHUFHLYHOLWWOHEHQH¿WLQFRRSHUDWLQJ$QGLQDGGLWLRQ %XWQRZKDYLQJVHFXUHGD¿UPVWDUWLQRQHORFDWLRQWKH they may fear dominance from a central city. We wider city region has successfully developed a wider have looked at cases where cooperation has spread of new jobs focussed round seven centres, not just LQ/LOOHUDQJLQJIURPKHDOWKEDVHGLQGXVWULHV (XUDVDQWp  nevertheless worked and found that the success through to textile innovation (Roubaix) and logistics factor was identifying how all contributing areas (Tourcoing). These centres form a strategy of clusters that deal with all the elements in the supply chain from design FDQEHQH¿W and training to production and retail. 10

A critical factor is the formulation of the Comité Grand Lille in 1993 comprising business, politicians and academics The Communauté Urbaine of Lille-Metropole in Northern to bid (unsuccessfully) to host the 2004 Olympic Games France is an area with a large number of separate local and then (successfully) for the 2004 European Capital of authorities. It faced serious industrial decline in the Culture. This drew not only different sectors together but 1970s. In particular the towns of Roubaix and Tourcoing, also ensured that all parts of the city region participated in which are large, had rising unemployment as a result of WKHEHQH¿WVRIWKHELGV competition to their native textile industries from outside Europe. The solution adopted by the conurbation was to The Greater Manchester Combined Authority (GMCA) promote Lille city – at the centre of the conurbation – as LVDQHZPRGHORIJRYHUQDQFHIRUDFLW\UHJLRQSURYLGHG the leading location for new types of industries. 9 for by the Local Democracy, Economic Development and Construction Act 2009. Whilst it builds on The Association of Greater Manchester Authorities (AGMA) model of voluntary collaboration between local authorities 1 through a Joint Committee, the GMCA is a statutory body with its functions set out in legislation. These functions, which cover the Greater Manchester area, include all the transport functions previously overseen by Greater Manchester Integrated Transport Authority, plus some economic development and regeneration functions. A new set of transport functions, notably those adopting UHVSRQVLELOLW\IRUWUDI¿FOLJKWVLJQDOVDQGUHSRUWVRQURDG WUDI¿FOHYHOVKDYHDOVREHHQGHOHJDWHGE\WKHFRQVWLWXHQW councils to the GMCA.

The Authority’s constitution is set out in an Operating Agreement, which has been approved by all 10 constituent councils. As a body, the GMCA comprises the Leaders of the 10 constituent councils in Greater Manchester (or their substitutes). It meets on the /LOOH(XURSH last Friday of every month, following the convention

9 P Hall (2014) Good Cities Better Lives, Routledge 10 C Colomb (2007) Making Connections: Transforming People and Places in Europe, JRF 9 Page 186 Appendix 4 Strategic Planning: Effective cooperation for planning across boundaries

established by the AGMA Executive Board which options in 2016, publication in 2017 and adopted in 2018. continues to meet immediately after the GMCA meeting. The UK Treasury issued a statement in November One of the key issues facing an area such as Greater 2014 saying that Greater Manchester will be getting Manchester is the question of winners and losers and LWVRZQGLUHFWO\HOHFWHGPD\RUZKRZLOOKDYH³SRZHUV the greater good. How can those supporting greater over strategic planning including the power to create cooperation convince all players that it is in their interests a statutory spatial framework for the city region”. The to work together, when that can mean local areas missing statement has the support of GMCA. We will need out? FODUL¿FDWLRQRQZKHWKHUWKLVZLOOVXSSODQWWKHMRLQWSODQ or be effectively the same vehicle. 13 The TANGO research for the European Spatial Observatory Network (ESPON) has investigated the way in which Greater Manchester has become a concept which authorities other than Manchester City (which is OLWWOHPRUHWKDQRQH¿IWKRIWKHWRWDOSRSXODWLRQ FDQEX\ LQWR7KH¿UVWLVLQHVWDEOLVKLQJORFDOXQGHUVWDQGLQJRIWKH concept: 2 “Whilst most of those living within the territory covered by the combined authority would have very little understanding of the nature and role of the GMCA there ZDVDVWURQJFXOWXUDODI¿QLW\WRWKHQRWLRQRID0DQFKHVWHU FLW\UHJLRQ2QHRIWKHGULYHUVIRUWKHUHJLRQDODI¿QLW\PD\ KDYHEHHQWKHYDULRXVKLJKSUR¿OHFLW\UHJLRQSURMHFWV [such as] … the Commonwealth Games and the failed Olympic bid …” 11

The AGMA has a skeleton staff and works closely with RI¿FHUVLQWKHFRQVWLWXHQWDXWKRULWLHV7KHSODQQLQJOHDG for AGMA is also chief planner for the City of Salford. His view on the role is that when acting for GM as a whole he is fully able to discharge that function with a view to the best outcome for GM as a whole. Under the previous strategic planning arrangements of a county and 10 district councils which operated from 1974 to 1986 such Manchester an approach would have been less likely and districts by night tended to be at odds with the county.

Whilst Greater Manchester has made considerable strides in a wide range of policy areas, the authorities have not yet agreed how housing will be distributed amongst them, meaning that at present the strategic planning arrangements are not yet serving a purpose in facilitating local plan making. 12 However the councils have set out a programme for the production of a joint statutory plan for the entire conurbation which will be out for consultation as

11 http://www.espon.eu/export/sites/default/Documents/Projects/AppliedResearch/TANGO/ Case_Study_7_Greater_Manchester.pdf

12 http://www.bury.gov.uk/index.aspx?articleid=6047

13 GMCA suggests this will be “in line with” the existing framework 3.11.14 Page 187 1010 Appendix 4

$UUDQJHPHQWVIRUVWUDWHJLFSODQQLQJEHQHÀWIURP being locally-designed

7KHUHLVDZLGHVSUHDGDFFHSWDQFHRIDSULQFLSOH It facilitated a Strategic Spatial Priorities document which set out the investment priorities for the subregion. The of whereby decisions which affect VXEVLGLDULW\ Cambridge and South Cambridgeshire Sustainable areas are taken as close to them as possible. This Development Strategy Review sets out the appropriate levels of housing development in the component districts principle even applies to designing how decisions of the area. affecting an area should be taken. This includes how The JSPU is not formally linked to the Greater Cambridge cooperation itself should be designed. and Peterborough Local Enterprise Partnership (LEP) but there are strong overlaps between their areas, and the JSPU has been assisting the LEP in its work on a Strategic Economic Growth Plan. There are strong By its very nature cooperation requires working and – advantages to undertaking strategic economic, transport crucially – compromise. It is hard to see cooperation and housing planning in a coordinated manner. working under duress, especially where political differences exist. This can mean that the areas which By contrast, in the Greater Birmingham area, the local work together are not perhaps the most optimal in enterprise partnership has itself formed the basis of an VWDWLVWLFDOWHUPVKRZHYHU¿QGLQJPXQLFLSDOLWLHVZKLFK area for strategic planning. The Greater Birmingham want to work together, provided they are contiguous, has and Solihull LEP has established a process for strategic advantages when political choices have to be made. planning in its area which does not necessarily follow DIXQFWLRQDOHFRQRPLFJHRJUDSK\EXWUHÀHFWVWKRVH :HFDQSRLQWWRDQXPEHURIFDVHVZKHUHORFDOO\ councils which are happy to work together. Given the designed cooperation appears to be working well. In QHFHVVDU\WUDGHRIIVZKLFKDWUXO\HIIHFWLYHSURFHVVRI Cambridgeshire , the local planning authorities have strategic planning will involve, the concept of building formed a Joint Strategic Planning Unit whose purpose on political relationships which work is helpful. The LEP is to handle matters which concern all the authorities. authorities have made a number of pledges including: The JSPU carries forward the Cambridgeshire and 3HWHUERURXJK6WUXFWXUH3ODQ which set out clear ³*%6/(3DUHDORFDODXWKRULWLHVZLOOZRUNWRJHWKHUWR directions of growth for the City of Cambridge and its deliver a strategic planning framework that surroundings. promotes growth and assists in the GHOLYHU\RIWKH*%6/(3(FRQRPLF The JSPU works with local authorities, 6WUDWHJ\´ and with relevant strategic bodies, to help develop a coherent The LEP authorities produced approach to planning across a Spatial Plan for Recovery the area. It supports and Growth 14 in September the local authorities in 2013 and consulted addressing the duty to local communities and cooperate. It produced VWDNHKROGHUVRQLW$¿QDO a Memorandum of plan is awaited. A critical Cooperation in 2013 test of the success of this which set out how approach based on voluntary the authorities would cooperation will be the cooperate. extent to which the overspill population of Birmingham will be accommodated in the other parts of the LEP area. A further issue is the 3 possibility that Birmingham (alone) might form a combined authority with Black Country. 7UXPSLQJWRQ0HDGRZV Cambridge 14 KWWSFHQWUHRIHQWHUSULVHFRPVWUDWHJLFVSDWLDOIUDPHZRUNSODQ 11 Page 188 Appendix 4 Strategic Planning: Effective cooperation for planning across boundaries

$NH\REMHFWLYHLGHQWL¿HGLQWKH 6ROHQW/RFDO*URZWK3ODQ (produced by the Solent Local Enterprise Partnership which has a very similar area) is to unlock critical employment sites and enable new housing to support DJURZLQJZRUNIRUFH7KH3ODQLGHQWL¿HVQHZ homes as a target by 2020. The current 6RXWK+DPSVKLUH 6WUDWHJ\ adopted in October 2012, provides a framework 4 to inform and support the preparation of statutory local plans which will assist the Solent area to plan for housing in a concerted manner. It is bold in proposing how homes The Library of Birmingham (and many other issues including employment) should be distributed across the subregion.

Further to the publication of the new joint 6RXWK Voluntary relationships, however ideal, may alter over +DPSVKLUH6WUDWHJLF+RXVLQJ0DUNHW$VVHVVPHQW in time as a consequence of changes in local politics or key January 2014, preparation to review the current South staff leaving. This change might be towards more joining Hampshire Strategy to 2036 is underway which will bring up with areas currently outside, or it might be towards the evidence base in the SHMA with a range of other fragmentation. There is a question regarding how such factors to consider what development should be planned relationships which are formed initially can be made to beyond 2026 to support the anticipated level of growth in last, and whether some form of concordat with a longish the PUSH area. time frame is needed. Otherwise commitments made by a grouping which can dissolve tomorrow will be of little practical value.

One area which has persisted in its political and staff relationships over a considerable period is the Partnership for Urban South Hampshire (PUSH) . This has long antecedents but came especially to the fore in the process that the 72 councils of the former South East Region used in creating their regional spatial strategy (RSS) in the early 2000s. The RSS was built up from DVHULHVRIVXEUHJLRQVRQHRIZKLFKZDV South Hampshire. The district and city authorities of the subregion, along with the County Council, worked in a partnership to produce a strategic plan. With the abolition of the RSS, the partnership has remained, and works roughly alongside a local enterprise partnership with similar boundaries. It is now working to assist the process of the duty to cooperate between local 5 planning authorities so as to smooth the path towards local plan adoption. *XQZKDUI4XD\V3RUWVPRXWK

Page 189 12 Appendix 4

Strategic planning needs to cover a wide range of areas of public policy

A new form of planning was introduced in England economic development, urban renewal, health promotion, housing, transportation and the environment. and Wales 15 in the Town & Country Planning $FWWKH³6WUXFWXUH3ODQ´7KHHUD As a result a series of complementary common SHUVSHFWLYHVZHUHGHYHORSHGLQDQDWWHPSWWRUHHQJDJH development plans which gave a use for every acre with agencies and partners following local government of the plan area had proved very slow to produce. reorganisation and to bridge the gap in economic development, transport and the environment created A research report in 1965 proposed a new form by the termination of Strathclyde Regional Council. The of planning, with ideas taken from military and common perspectives: ɿ Set out formally a common understanding of issues, management science. for example, though a common SWOT analysis for WKHLUSDUWLFXODU¿HOGRIDFWLRQ

ɿ Provided a spatial interpretation of the policies of the Structure plans concentrated on broad strategies and Agencies in question; to set the Development Plan’s critically did not have a map with recognisable streets polices within a wider context of Joint Action; and houses on it, but instead a “key diagram” showing the long term strategy for broad areas. They covered a ɿ Demonstrated that the need for economic range of issues including transport, social housing, and development requires not only new development sites education. They were required to be approved by the but also linkage to Job Training Programmes; and Secretary of State in Whitehall. The last sentence of his approval letter invariably ran on these lines: “Approval ɿ'H¿QHGNH\DUHDVRIMRLQWDFWLRQUHTXLUHGWRLPSOHPHQW of this plan does not commit the government to any the strategy. expenditure”. This effectively bound the hands of the The core policies of the 2000 Glasgow and Clyde Valley structure plans in England behind their backs, as they [Structure] Plan were linked to delivery mechanisms. were not in a position to have a bearing on the critical Local plans were as a result prepared in tandem, such issues facing the areas they were covering. WKDWVHYHQRIWKHHLJKWFRXQFLOVKDG¿QDOLVHGRUDGRSWHG Despite the limitations of the genre, some structure plans LQWKH8.KDYHEHHQDVVRFLDWHGZLWKVXEVWDQWLDOLQÀXHQFH over public spending. One possible reason for this is that LQSDUWVRIWKHSUHGHYROXWLRQ8.VXFKDV6FRWODQGWKHUH were shorter lines of communication between localities and the centre where decisions were made. The way 6 that resource decisions that are interrelated at local level (such and land use and transport, or land use, schools and health care provision) track back to separate decision making regimes at the centre can be very damaging to growth.

For example the joint planning arrangements for the Glasgow and Clyde Valley metropolitan area were originally established in 1996 for the production of a structure plan followed local government reorganisation, but have been harnessed to provide the spatial planning FRQWH[WIRUDUDQJHRIDFWLRQSURJUDPPHVLQWKH¿HOGVRI

Clyde Waterfront

15 Structure Plans were also subsequently introduced in Scotland 13 Page 190 Appendix 4 Strategic Planning: Effective cooperation for planning across boundaries

7 plans within a year of the approval of the 2000 Structure Plan. The 2005 update of the Structure Plan sought to extend common perspectives into thematic ‘Joint Action Programmes’ which link the Plan more clearly to the programmes of the implementation agencies and to delivery mechanisms. The effectiveness of the Plan LOW RES ZDVUHÀHFWHGLQ

ɿPromoting Urban Renewal: Since 1996 there has been a net annual reduction in vacant land of 106ha. 7KHWKUHH)ODJVKLS,QLWLDWLYHVLGHQWL¿HGWKURXJKWKH3ODQ were taken up by the development agencies, now have been embedded in the National Planning Framework as NH\SULRULWLHVWKH&O\GH*DWHZD\&O\GH:DWHUIURQWDQG City Hall, London Ravenscraig. These collectively seek to promote 25,000 houses and a comparable number of jobs.

ɿWidening Strategic Cooperation: The collective In a very different kind of context, strategic planning is action achieved through the joint strategic planning being undertaken in Greater London . Much is made of arrangements encouraged wider collaboration in sectoral the Mayor of London having the only statutory strategic policy areas. As a result, the Joint Committee was used plan in England, but of particular interest here is the as the mechanism for extending the level of cooperation responsibility of the Mayor for an increasing number of between councils by preparing complementary Joint policy areas. He is now in charge of: Transport and Greenspace Strategies. ɿ Transport (except nearly all heavy rail, and airports) This has resulted in the establishment of dedicated teams to deliver these strategies and associated funding ɿ Housing funding streams. The Development Plan was also one of the ɿ+RXVLQJODQGXVHDOORFDWLRQV core source documents for the City Vision Report which formed the basis for a strategic Community Planning London is facing accommodating an additional 1.4 million Partnership across all eight council areas in the people in the next 35 years, if current growth rates are metropolitan area. continued. The Mayor has published a draft Infrastructure Plan 16 to examine the next 35 years to 2050 to see how ɿHarnessing additional resources: Similarly, the 2000 the full range of city infrastructure – including housing Plan was adopted as the spatial development framework – can be provided. This process covers a wide range which underpinned the European Regional Development of policy areas – transport, green infrastructure, digital )XQGVLQJOHSURJUDPPHGRFXPHQW  DQGZDV connectivity, energy, water and waste. However the Mayor the basis for a GRO Grant programme of ‘gap funding’ points out that current regulatory regimes for many private IRUSULYDWHKRXVLQJRQEURZQ¿HOGVLWHV,WZDVDOVRDFRUH infrastructure providers militate against supporting the source document used to harness £70 million additional level of growth London needs. resources through the Scottish Government’s Cities Growth Fund. Subsequently, the Plan was used as the The plan addresses an area wider than just the area controlled by the Mayor (Greater London). However there EDVLVRIDELGIRUD PLOOLRQ¿YH\HDUUROOLQJSURJUDPPH for the treatment of vacant and derelict land and to kick is a serious weakness here as the areas outside London VWDUWD PLOOLRQPXOWLDJHQF\*UHHQVSDFHSDUWQHUVKLS KDYHQRWEHHQFRSURGXFHUVRIWKHSODQRQO\FRQVXOWHHV

16 KWWSZZZORQGRQJRYXNSULRULWLHVEXVLQHVVHFRQRP\ YLVLRQDQGVWUDWHJ\LQIUDVWUXFWXUHSODQ Page 191 14 Appendix 4

Strategic planning works well if it has strong local political buy-in

If strategic planning is to be really effective, it must elected members regularly, discussing the key issues ahead of committee meetings and where required making be a mainstream commitment from the politicians in changes to best ensure that the plan meets political, as the constituent member councils or municipalities. well as other, needs. In practice, all elected members (local councillors, MSPs, MPs, and MEPs) are kept briefed on the review and The current arrangements for strategic planning in preparation of the strategic plan. At key stages of the Plan Scotland following the Planning Act of 2006 require that process, elected members are further briefed. Strategic Development Planning Areas are designated by A successful partnership requires effective communication Ministers and committees of councillors who determine production of plans for the four city regions of Scotland. WRHQVXUHWKDWDOOSDUWQHUVSROLWLFDODQGQRQSROLWLFDODUH kept informed, provided opportunities to raise and discuss 7KHSODQIRUWKH3HUWKDQG'XQGHHFLW\UHJLRQLVDQ issues as an integral part of a Plan making process, and excellent example of a plan which concentrates on the DOOVHHNLQJWRDFKLHYHDZLQZLQWRHQVXUHRZQHUVKLS basics, but does not duck important issues for the region. Strategic planning sets the high level strategy and policies leaving local decisions to local elected members. Getting TAYplan Strategic Development Planning Authority is the balance of political decisions required at the strategic a partnership with the purpose of preparing, monitoring OHYHODQGZKDWGHFLVLRQVDQGÀH[LELOLW\LVEHVWWDNHQ and reviewing the Strategic Development Plan for the at a local level is part of the art in successful strategic Dundee and Perth City Region. planning.

Effective partnership working is at the heart of how $OWKRXJKWKH¿QDOVD\LQDSSURYLQJWKHSODQIRUWKH TAYplan operates. Whilst Scottish planning legislation Tayside region rests with Scottish Ministers, the key task allows a constituent Planning Authority within a strategic LQSUHSDULQJLWDQGDFKLHYLQJEX\LQUHVWVORFDOO\7$<3ODQ development planning area to submit its own strategy won the RTPI’s highest award, the Silver Jubilee Cup, in should agreement not be reached, such a scenario is not 2012. on TAYplan’s agenda.

TAYplan is governed by a Joint Committee made up of three local councillors from each of the four constituent councils. The chair rotates annually and meetings are 8 KHOGWLPHVHDFK\HDU7KHHOHFWHGPHPEHUVXVHWKH opportunity of the Joint Committee to informally discuss other cross boundary projects and issues.

The Strategic Development Plan takes account of the Single Outcome Agreements each council has agreed with the Scottish Government. TAYplan has a role in assisting Government to achieve national outcomes, especially those related to planning as set out in the National Planning Framework and Scottish Planning Policy. Therefore, the TAYplan outcomes are aligned to national planning outcomes and those of the constituent councils. 'XQGHH:DWHUIURQW The partnership has to bring together different political JURXSVDQGHQVXUHEX\LQDQGRZQHUVKLSRIWKHVWUDWHJLF vision, outcomes and spatial strategy. In doing so it LVLPSRUWDQWWRKDYHHIIHFWLYHFRPPXQLFDWLRQEULH¿QJ

15 Page 192 Appendix 4 Strategic Planning: Effective cooperation for planning across boundaries

14

The Queensland Government is committed to delivering a new generation of statutory regional plans. These regional plans seek to provide strategic direction to achieve regional outcomes that align with the state’s interest in planning and development. While land use planning is primarily the responsibility of local government, the state has an interest in ensuring that broader regional outcomes are achieved through the application of state policy in local planning. 17

The purpose of the new regional plans is to identify regional outcomes to help achieve state interests. Regional policies are used to facilitate these outcomes *ROG&RDVW4XHHQVODQG by addressing existing or emerging regional issues, such $XVWUDOLD as competition between land uses. A new approach to statutory regional plans is being driven through collaboration with local governments, key industry groups The Council of Mayors (SEQ) is supported by a AUS$2 and the wider community to ensure the aspirations of all million budget, set annually by the Mayors, with levies regional stakeholders are considered. agreed by all councils based on a population share. A strategic planning workshop is held early each year to South East Queensland is the most populous part of determine and agree priorities for the Council of Mayors the State, with around four million people. There are (SEQ) for the year. 11 individual local authorities including the state capital Brisbane. The South East Queensland Regional Planning Committee (RPC) plays a key role in advising the State Minister on the review of the emerging regional plan.

South East Queensland has a Council of Mayors which supervises strategic planning activity in the region, leading to coordination of the planning activities of the individual areas. It also plays a key role in advocacy at State and Commonwealth (national) level. The mayors of all local governments in the region are members of the 53&DQGORFDOJRYHUQPHQWWHFKQLFDORI¿FHUVDUHLQFOXGHG in the advisory groups.

The Council of Mayors (SEQ) meets every two months, ¿YHWLPHVD\HDU(YHU\0D\RUKDVDQHTXDOYRWHLQLWV decisions and the constitution states that decisions be made by consensus where possible. The Council of Mayors (SEQ) has three standing committees comprising FRXQFLOORUVDQGVHQLRURI¿FHUVZRUNLQJRQWKUHHNH\ priority areas:

ɿ Regional Planning and Growth Management Committee ɿ Infrastructure Committee ɿ Environment and Sustainability Committee

17 KWWSZZZGVGLSTOGJRYDXUHJLRQDOSODQQLQJ Page 193 16 Appendix 4

Close links with business are vital

9 Through the history of working on strategic planning DFRPPRQGLI¿FXOW\LVWKHGLYHUJHQFHRIEXVLQHVV and other agendas. Business may need to operate on short time horizons; planning operations may require long gestation. This has a number of drawbacks. It can mean that the needs of business are not addressed at the strategic level, and options for doing so are thereby limited a local level. In turn this can lead to business opposition to potentially Cardiff Bay fragile local alliances. Worse, it can mean local economies’ growth is weakened.

done by SEWSPG could save time and money by building The South East Wales Strategic Planning Group on the planning knowledge and skills/bases which already (SEWSPG) is formed of ten LPAs in the south east of exists in the 10 local authorities. Wales. SEWSPG provides a forum in South East Wales In England Local Enterprise Partnerships (LEPs) were within which neighbouring LPAs can discuss issues, established in 2010 to replace Regional Development particularly those relating to the development of their Agencies. The Coalition government required them to Local Development Plans (LDPs). These issues range from population projections, to housing allocations, to be led by the private sector and for them to display a strategic employment sites, as well as many other factors. strong entrepreneurial aspect. This aim appears to have succeeded, with the look and feel of LEPs being more Recently SEWSPG has developed a regional evidence EXVLQHVVIRFXVVHGDQGOHVVRI¿FLDOWKDQ5'$V7KH\KDYH base using Welsh Government support, through a also undertaken a great deal of activity given a small input regional LDP mapping exercise and Employment of public money. (However questions remain concerning Database as a response to the Draft Planning Bill (Wales) WKHDELOLW\RIOHDGLQJEXVLQHVVSHRSOHWRPDLQWDLQORQJ ZKLFKLVLQGLFDWLQJWKDWD6WUDWHJLF 5HJLRQDO ODQGXVH term major voluntary commitments on top of pressing day plan is likely to become mandatory at Cardiff Capital jobs.) City Regional Level – which is coterminous with the area currently covered by SEWSPG. Under current arrangements there is no obligation on LEPs to undertake any strategic spatial planning per Parallel and complementary work has also been se. Their principal achievement has been in animating undertaken by SEWDER (made up of Environment the business community to effectively undertake a vast Directors from the 10 local authorities) Business Group amount of voluntary activity and to confront and process on a cluster analysis of key sectors in the region. This strategic planning matters such as skills, transport and work will now continue with the procurement of MINT data land availability for housing and employment purposes. to highlight further areas where the local authorities can However LEPs do have a strong potential to establish add value to the work already underway by the business sector. what the business voice is within a city region or county. This is a valuable stepping stone towards a SEWSPG hopes to support work on the emerging City strong business input into strategic spatial planning Region by feeding into SEWDER and via that Group ZKLFKFDQSURYLGHD¿UPEDFNGURSWRSODQPDNLQJE\ into the Regional Leaders’ Board. As the Economic individual councils. However, they are not a substitute for Development and Planning agenda in South East Wales democratic decision making. appears to be moving towards a regional focus, based on the economic entity of the Cardiff Capital region, the work

17 Page 194 Appendix 4 Strategic Planning: Effective cooperation for planning across boundaries

10

LEPs have now produced Strategic Economic Plans. 7KHVHDUHEXVLQHVVEDVHGGRFXPHQWV%XWLQPDQ\DUHDV LEPs have recognised that a good housing supply is essential for local growth. For example the Lancashire Enterprise Partnership’s Strategic Economic Plan includes: 18

“A strategic transport programme seeking £195.7m in competitive Growth Deal funding to release the economic and housing growth potential of Preston, East Lancashire, Lancaster, and Skelmersdale in West Lancashire, ….”

The Lancashire LEP also ensures strong linkage between housing and economic growth and transport investment, an issue high on the priorities of the RTPI: :DOVDOO$UW*DOOHU\ “4.4 Ensuring major transport projects and investments are fully aligned with the delivery of key economic and housing growth priorities across Lancashire” intermeshed with the core strategy as a fully aligned process. For example the headline pitch says: 7KLVEXVLQHVVOHGDSSURDFKWRVXEUHJLRQDOHFRQRPLF planning has operated consistently with the approach ³:HKDYHDORQJHVWDEOLVKHGYLVLRQIRUWKH%ODFN&RXQWU\ EHLQJDGDSWHGWRODQGXVHSODQQLQJ LQZKLFKSURYLGHVD¿UPIRXQGDWLRQIRURXUORFDO “7.139 To maximise opportunities local partners growth deal. Our aim is to grow our global supply chain are currently undertaking reviews of Green Belt to with the world class skills it demands, to maximise the accommodate new housing development and local plans EHQH¿WVRIRXUORFDWLRQWRH[SORLWRXULQGXVWULDODQG DUHDGRSWLQJDVWURQJO\PDUNHWIDFLQJDSSURDFKWRVLWH geological heritage and to provide high quality housing allocations.” to meet the needs of a balanced growing population. Our JURXQGEUHDNLQJFRUHVWUDWHJ\SURYLGHVDSURJURZWK Three councils in “Central Lancashire” (Preston, South planning framework to deliver this vision.” 19 Ribble and Chorley) have produced a single joint core strategy adopted in 2012 which makes all the housing The Strategic Economic Plan incorporates the housing allocations in broad principle. It is being supplemented proposals of the core strategy both in overall volume and by detailed plans in smaller areas around the DOVRLQUHVSHFWRIVSHFL¿FVLWHV7KH6(3DOVRLQFOXGHV three boroughs. short term proposals to accelerate the delivery of 2000 11 homes before 2021, thus demonstrating the full potential The Black Country comprises the four RIWKH/(3DVDGHOLYHU\ERG\IRUWKHVWUDWHJLFDQGMRLQHG council areas of Wolverhampton, Sandwell, up policies of the local authorities in its area. Interestingly Dudley and Walsall. It has demonstrated strong joint the SEP includes as basis for its bid for funds the past working for a number of years now and in 2011 adopted performance of the area in housing delivery of 15,000 net a joint core strategy to guide development. This has increases in housing stock since 2006. This shows that the advantage of both taking a strategic view and also the Black Country’s proposals are not simply aspirational. dispensing with the need for costly individual core strategies for each council area. The joint working has evolved into deep connections with the Black Country /(3ZKLFKLVFRWHUPLQRXV7KLVLVGHPRQVWUDWHGE\WKH Black Country Strategic Economic Plan which is fully

18 KWWSZZZODQFDVKLUHOHSFRXNPHGLD/(3VWUDWHJLFHFRQRPLFSODQSGI 19 KWWSZZZEODFNFRXQWU\OHSFRXNDERXWXVEODFNFRXQWU\SODQVIRUJURZWKVWUDWHJLFHFRQRPLFSODQ Page 195 18 Appendix 4

Cooperation needs to reach beyond the boundaries of a strategic planning area

There is no perfect size of area for the practice of Northern Way liaised with regional stakeholders to gain support for the scheme across the North, communicating strategic planning. And for some purposes it may be WKHUHJLRQDOEHQH¿WVRIWKHSURMHFWQRWZLWKVWDQGLQJWKH appropriate for strategic planning to take place at infrastructure works being focused predominantly on the Greater Manchester area. The issue of concentration two different scales at the same time. One way this RILQYHVWPHQWLQRQHSODFHEXWZLGHUVSUHDGEHQH¿WV can happen is for neighbouring strategic planning is an important one. If the strategic planning clusters of Liverpool, Manchester and Leeds city regions had areas to themselves cooperate. This can enable not been able to establish links, it seems that such appropriate action to be taken across wider areas investment in a Hub would have been less likely. Moreover the coming together of four city regions had the such as large river catchments or areas for strategic consequence that attention could be placed on the issues transport investment. of transPennine travel and freight movement, which might otherwise not have been a priority for any single one of them.

8QGHUWKH/DERXUJRYHUQPHQWLQ(QJODQG there were three regional development agencies in the 12 North of England . The Government developed proposals for establishing a northern initiative to promote economic growth, based on the concept of a more positive statement of the North’s capacity for growth. There was a generally positive response to the Government’s VXJJHVWLRQIRUDSDQQRUWKHUQLQLWLDWLYH$0DQDJHPHQW Group was established with representatives from regions, cities and Whitehall and was chaired by One North East Regional Development Agency. Initial work culminated in the publication of a The 1RUWKHUQ:D\*URZWK6WUDWHJ\ LQ6HSWHPEHUZKLFKLGHQWL¿HG,QYHVWPHQW Priorities 20 including three on connectivity/transport.

The transport work of the Northern Way focussed on improvements to connectivity between Northern cities Trinity Bridge, linking starting with the “Northern Hub” scheme intended to 6DOIRUGDQG0DQFKHVWHU deliver:

ɿ700 more trains to run between the major towns and cities in the North every day The momentum of joint working on transport has been ɿ3.5m more passengers every year maintained beyond the Northern Hub towards a wider ambition to further decrease journey times and increase ɿQuicker journey times connectivity. The city regions of Liverpool, Greater ɿ£530m of targeted investment to help the North 0DQFKHVWHU/HHGV6KHI¿HOGDQGWKH1RUWK(DVW/(3 continue to thrive have combined to make a joint case for transport investment of £15B. A key element in this is the desire to The Northern Way undertook an initial study on this DOORZ¿UPVWREHQH¿WIURPDFFHVVWRZLGHUODERXUPDUNHWV concept, and supported the development of the project Intercity commuting between cities in the transPennine by Network Rail through the Governance for Railway corridor is less than would be expected by their proximity. Investment Projects (GRIP) stages with a view to it being The cities can work towards a single labour market and LQFOXGHGLQWKHQH[W&RQWURO3HULRG &3 7KH

20 This account is derived from: http://www.northernwaytransportcompact.com/downloads/Evaluation/Evaluation%20Final%20Report%20April%202011.pdf 19 Page 196 Appendix 4 Strategic Planning: Effective cooperation for planning across boundaries

WKXVEHQH¿WIURPDJJORPHUDWLRQHFRQRPLHVDVLIWKH\ were a single larger city. This is estimated to lead to accelerated growth both for the city regions and also for the UK.

Boundaries between countries may cut across patterns of movement of people and goods, or across areas with strong environmental connections (e.g. river basins). The border between the Republic of Ireland and Northern Ireland LVWKHFRQWH[WIRUWKUHHFURVVQDWLRQDOERUGHU strategic planning groups: an eastern seaboard group centred on Newry and Dundalk, the central group (see below) and a north western group. All appear to be examples of successful cross border strategic planning. 13 Enniskillen Castle, Fermanagh ICBAN the Irish Central Border Area Network has published a Regional Strategic Framework, which is a spatial plan dealing with the issues affecting the region either side of the border. ICBAN is a bottom up grouping, established by councillors either side of the border in 1995. It used existing commonalities with clear DQGREYLRXVEHQH¿WVIURPGRLQJLWDQGLVVXSSRUWHG by Department of Regional Development (NI) and Department for Communities and Environment (RoI) and the EU. This work was shortlisted as a project in the RTPI’s $ZDUGVIRU3ODQQLQJ([FHOOHQFH 2014.

Page 197 20 Appendix 4

General principles for strategic planning

The foregoing examination of good practice, and its Strategic planning should be deliverable, to be effective experience over the years in strategic planning practice, by being linked to expenditure programmes. Learning coupled with the discussions held across the UK and from the experiences in Glasgow and London, it is clear Ireland in 2014, has led the RTPI to conclude that that strategic planning in name only is purposeless. There strategic planning should follow these general principles: must be buy in from bodies with the ability to bring about implementation. The RTPI has looked at this critical Strategic planning should have focus WREHHI¿FLHQWLQWKH question in its Planning Horizons paper Making Better use of resources and clarity of purpose and it should be Decisions for Places. genuinely strategic , dealing only with issues that require treatment at a higher level than individual municipalities. There should be collaborative governance structures It is easy for strategic plans to become overlong and deal to ensure proactive engagement by all stakeholders. By with a wide range of issues which are either satisfactorily “collaboration” we mean that partners work together to covered by localities, or alternatively by national planning see how they can deliver each other’s agendas. This policy (e.g. Scottish Planning Policy, National Planning is contrasted with what might be termed “cooperation”, Policy Framework [England]). It is not entirely clear why where participation is restricted to consent to proposals strategic plans need to include broad policy statements so long as they do not interfere with my agenda. One of like “all development will seek to mitigate climate change” our concerns in the Horizons paper is to examine whether especially if this objective is covered by legal and national this kind of collaboration is more likely where decision policy provisions. making is concentrated at the strategic planning level rather than dispersed (especially dispersed upwards and Strategic planning should be spatial. By this we mean away from strategic planning areas to either nations or that it should make choices between places . The RTPI small localities). The appreciation of other’s agendas may has recently produced a paper entitled 7KLQNLQJ6SDWLDOO\ be much easier if you can see the place context in which in its Planning Horizons Centenary research series in other organisations are operating. which we set a challenge to policy makers everywhere (not just in planning) to recognise and act on the fact that Collaboration also requires strong leadership both VRPHDFWLYLWLHV±ODUJHVFDOHKRXVLQJHPSOR\PHQWKLJKHU politically and professionally. When entering into HGXFDWLRQDUHEHWWHUXQGHUWDNHQLQVRPHSODFHVZLWKLQD negotiations is necessary for participants to be able FLW\RUFRXQW\UHJLRQWKDQRWKHUV to carry their areas with them. If their choices are very fettered, negotiations will suffer. To reach that position, Applying this principle to the particular kind of WUXVWLQOHDGHUVKLSQHHGVWRWDNHURRWDQGÀRXULVK interauthority strategic planning which is the concern of this paper, means that strategic plans need to set The process should be locally-fashioned to ensure out where major investments in housing, transport and that the governance arrangements are sensitive to local economic growth will happen. Making these decisions at culture and communities of interests. Our evidence from the appropriate geographic scale will make them more England has demonstrated the value of allowing areas likely to occur and also make it easier to ensure that to make their own choices regarding who to associate environmental considerations and a degree of fairness with. There are also strong advantages to permitting the between localities are observed. internal governance arrangements of strategic planning collaborations to be a matter for areas to determine for It should be responsive EHLQJHI¿FLHQWLQSUHSDUDWLRQ themselves, subject to compliance with issues such as and with a dynamic review mechanism capable of accounting practice. adapting to change. In many cases the strategic planning function acts as a guide to other decisions (on planning, The most enduring collaborations are likely to be those on investment) taken further down the line. If the plan with a clear line of accountability to local electorates. is cumbersome to prepare, it can mean these other This may not need to involve a special layer of “strategic” functions are delayed. councillors elected separately from local councillors: indeed this would be a less desirable approach as it would not necessarily deliver the commitment of the constituent councils/municipalities. 21

21 ([SHULHQFHRIWKHWZRWLHUSODQQLQJV\VWHPUXQLQ(QJODQGXQWLOZRXOGWHQGWR endorse this at least in some areas. 21 Page 198 Appendix 4 Strategic Planning: Effective cooperation for planning across boundaries

A common alternative is to have a joint board comprised of elected representatives of each area dedicated to strategic planning. Another is to have strategic decisions taken by a leaders’ board. The latter has the advantage of facilitating closer links between the spatial planning and other objectives.

There are a number of other attributes 22 of strategic planning which are not peculiar to this scale of planning but characterise planning more generally. We list them here, but do not examine them in detail:

ɿ Evidence based, including assessment for economic, social and environmental sustainability ɿ ,QYROYLQJWKHFRPPXQLW\±VSHFL¿FDOO\WRcUKXV principles of consultation ɿ Pursuance of social justice ɿ Linked to implementation schedules with professional programming

([SHULHQFHRIWKHWZRWLHUSODQQLQJV\VWHPUXQLQ(QJODQGXQWLOZRXOGWHQGWR 22 There are numerous sources for these. One example is http://neat.ecosystemsknowledge.net/principles.html Page 199 2222 Appendix 4

Country recommendations: England

“Duty to Cooperate” There is a great deal of experience in effective strategic The “duty to cooperate” introduced in the Localism Act planning in England over the last 80 years produced 2012 requires local planning authorities to undertake within a range of contexts. Examples include: meaningful discussions around strategic planning matters but it is not a duty to agree. ɿ9ROXQWDU\6KHI¿HOG5HJLRQ V The duty to cooperate has worked well in some places, ɿ&HQWUDO*RYHUQPHQW7KH*UHDWHU/RQGRQ3ODQ but in nothing like enough places given the importance V  6RXWK(DVW6WXG\ V of strategic issues such as transport, housing and the environment. The duty is enforced by the government’s ɿ6XEUHJLRQDO1RWWV'HUE\ /HLFHVWHU/HLFHVWHUVKLUH (1970s) Planning Inspectorate, which has the power to reject local plans which do not demonstrate “cooperation”. This ɿ5HJLRQDO:HVW0LGODQGV3ODQQLQJ$GYLVRU\ has been done on many occasions – either outright, or Conference & SERPLAN (1980s); West Midlands RSS through requesting the local authority to try again. (2000s) However there is no positive mechanism to bring about This range of experience suggests that although there are effective strategic planning: only a negative mechanism to EHQH¿WVWRKDYLQJDGHGLFDWHGVWUDWHJLFSODQQLQJERG\WKH SUHYHQWQRQVWUDWHJLFSODQQLQJ7KLVLVLQVXI¿FLHQWJLYHQ lack of one does not prevent effective strategic planning the importance of strategic planning matters and the fact that local authority boundaries do not match functional if collaborative arrangements are properly supported, economic areas. and go beyond mere cooperation. We have considered whether further primary legislation at this stage is the While strategic WRZQDQGFRXQWU\ planning is currently a answer. Matters are now so urgent that we cannot afford challenge, the Coalition has been making progress with a the protracted delays that would be created by changing broader decentralisation / strategic agenda. Some of this the system again when much more could be achieved builds on policies of the previous government, such as the within the current administrative frameworks than has creation of combined authorities which are legal entities been achieved to date. The RTPI considers the upheavals ZLWKVSHFL¿FVXEUHJLRQDOWDVNV,QDGGLWLRQJURXSVRI brought about by repeated changes to the system have local authorities have entered into City Deals, which give contributed to delays in housing supply and in addressing JRYHUQPHQWJUDQWVIRUVSHFL¿FSURMHFWVDQGDGHJUHHRI other strategic issues. Therefore in the short term an ÀH[LELOLW\LQVSHQGLQJLQUHWXUQIRUFRPPLWPHQWVWRPHHWLQJ approach which avoids legislation is needed. government objectives around growth. Local Enterprise Partnerships replaced regional development agencies as Local Enterprise Partnerships WKHSUHIHUUHGYHKLFOHIRUSURPRWLQJORFDO DQGODUJHU±WKDQ local) economic growth. They have produced strategic The Labour and Conservative Parties appear to be economic plans which include bids for government committed to retaining LEPs. 23 These have been largely grants through the growth deal process, and are also the designed from the bottom up and they have demonstrated Government’s chosen mechanism for the subnational strong business and local government involvement. administration of European Union funding. The geographic scale of LEPs corresponds broadly to the scale at which much strategic planning needs to Despite the emphasis being put on cooperation between take place. Therefore although sometimes originating local authorities and business in city regions and counties, in relationships of shared interests and political ties, our current research into strategic planning around most LEP areas are generally viable areas to undertake England suggests strikingly few places where agreement strategic planning. And indeed LEPs’ geographic has been reached on housing, despite the link between jobs and homes being critical. It is all too easy for a wider VFDOHDOVRFRUUHVSRQGVWRWKDWRIFRXQWLHVFLW\UHJLRQV area to make energetic plans for economic growth and and Combined Authorities. In some areas these are WKHUHE\WREHQH¿WVWURQJO\IURPJRYHUQPHQWLQYHVWPHQW coterminous. However the precise boundaries of LEPs, without agreeing to the supporting housing growth. including many overlaps and some arguably unwieldy DUHDVPHDQVWKDWDVDORQJWHUPVROXWLRQVRPHWZHDNV Furthermore, an area might make assumptions around would be needed. These will hopefully emerge from within the treatment of environmental matters such as run off the areas themselves. ZLWKRXWVXI¿FLHQWGLVFXVVLRQZLWKRWKHUDUHDVUHJDUGLQJ the implications.

Lessons from the past

23 We are not clear on the Liberal Democrat position 23 Page 200 Appendix 4 Strategic Planning: Effective cooperation for planning across boundaries

Way forward principally by the public sector and associated bodies We recommend that local authorities form / maintain such as utility companies and transport companies. (This voluntary groupings at city-region or county scale to can then lever in multiples of private investment.) agree housing numbers and other matters of strategic And the provision of such infrastructure through Growth importance . These matters would include transport DQG&LW\'HDOVRQWKHSDVWPRGHOPD\QRWEHVXI¿FLHQW investment, key employment locations and environmental So when an area makes provision for housing at a certain management. These groupings should broadly scale, either government support for it should match what align with LEP areas and the approach to strategic is required, or plans should be scaled down. matters should align with the approach taken in LEPs’ strategic economic plans and authorities’ city deals. Given that we are not seeking at this stage further primary legislative changes, the duty to cooperate will remain on There will need to be continued and deepening the statute book, but the planning system would not rely FRRSHUDWLRQEHWZHHQFRXQW\DQGGLVWULFWFRXQFLOVLQWZR on it alone as at present, but it would simply be invoked tier areas where counties have already been exercising in cases where incentives had failed to work, which strategic functions such as transport and taking a key role undermine a national interest or where cooperation has in LEPs. been tokenistic or perverse. It however needs to be recognised that even within The system proposed would enable strategic planning the framework of LEPs and other administrative in England to achieve democratic accountability. Whilst arrangements there is a need to overcome the current this is in our view a matter for local areas to determine weaknesses in the level of cooperation. Our diagnosis IRUWKHPVHOYHVWKHUHLVFXUUHQWO\DGHPRFUDWLFGH¿FLW of this is that there is not enough reason for planning whereby decisions are being taken in one area which authorities (in particular) to cooperate, and often strong critically affect the well being of communities and reasons not to. Therefore we propose that a post 2015 individuals elsewhere but who have no effective voice. government needs to back up its potential statements The process whereby groups of local authorities come on increasing housing supply with powerful, effective together for strategic planning purposes would enable a incentives to local authorities to plan properly for variety of possible mechanisms of governance: the long term, and to plan collectively . There is already a mechanism to achieve this through the money ɿ Joint Planning Committee awarded through Growth Deals and City Deals. Our proposal is that future resources and powers of this ɿ Leaders’ Board kind should only be made available to areas which can demonstrate jointly agreed plans to cater for Business and planning housing need. This would be a much more substantial There are two common fragilities: incentive to collaboration on housing planning than has ever been employed before and would have the additional ɿ Overambitious strategic economic plans which advantage that it would be focussed on issues related to are not supported by the level of housing needed, housing growth. In return, we propose that the content infrastructure and environmental frameworks of Growth Deals and City Deals should be material and which do not have the broad support of local considerations in planning decisions. This is possible communities either because all government policy is capable of being a Government allocating City Deal and Growth Deal material consideration. ɿ money to areas which have not succeeded in reaching As well as providing hopefully some real incentives to plan agreement on how collectively to meet their share of effectively and cooperatively, this process would also have national housing need WKHSUDFWLFDOEHQH¿WRIDVVLVWLQJLPSOHPHQWDWLRQ:KLOVW a process of allocating the location of housing growth is a necessary condition for effective strategic planning in (QJODQGLWLVE\QRPHDQVDVXI¿FLHQWFRQGLWLRQ*URZWK DQGUHJHQHUDWLRQZLOOQRWKDSSHQXQOHVVLWLVWLHGLQWR¿UP plans for physical and social infrastructure investment,

Page 201 24 Appendix 4

7KHVHSUREOHPVDULVHIURPLQVXI¿FLHQWFRRUGLQDWLRQ ɿ Combined authorities to have responsibility for various at local level between local planning activity and LEP budgets, starting with housing and transport and strategic planning, and from a perhaps overgenerous moving on to education and health attitude on the part of government. To correct this Growth Deals should be made conditional on local authorities ɿ Combined authorities to have tax raising (or lowering) having agreed housing distributions and should powers, probably based on property tax be consistent with the housing proposed by local authority groupings. The RTPI’s Proposals for 2015 Wider still and wider The economic and social geography of England is ɿ Local authorities to form voluntary groupings in complex. There are areas where wider cooperation and JHRJUDSKLFDUHDVRIFLW\UHJLRQRUFRXQW\VFDOH (normally aligned with local enterprise partnerships) FROODERUDWLRQWKDQDWFLW\UHJLRQVXEUHJLRQDOOHYHOLV needed. In some areas cooperation between city regions and county areas would be necessary. Cooperation ɿ Local authorities in these groupings to agree housing among the city regions of Liverpool, Greater Manchester, numbers and other strategic matters in alignment with 6KHI¿HOGDQG/HHGVKDVEHHQIUHTXHQWO\SURSRVHGDV Strategic Economic Plans and City Deals a means of creating a greater second city mass within (QJODQGWREHQH¿WIURPHFRQRPLHVRIVFDOH ɿ Central government to drive this forward with strong but conditional incentives in transport, health and Similarly we would argue it is essential for cross strategic skills/education spending border cooperation to take place in the London and South East region. At present (2014) the Mayor of London is ɿ Local Enterprise Partnerships to align economic proposing that London will undersupply its housing needs growth plans with strategic housing provision plans by at least 7000 a year. There is currently no forum which will decide how this currently unplanned overspill is catered for. A better mechanism would be through a consortium of strategic planning areas.

The further future We consider that strategic planning is likely to be on an evolutionary journey, and hopefully a journey towards better and better solutions. The Scottish Referendum has spawned some discussion on decentralisation in England as well. Whilst our proposals are ones for immediate implementation, a future government with responsibility for England would do well to consider some further steps. These could include:

ɿ Complete coverage of combined authorities across England

ɿ Combined authorities to be coterminous with LEPs and vice versa

ɿ Single deals to replace City Deals and Growth Deals

ɿ Strategic economic plans to be signed off by combined authorities

25 Page 202 Appendix 4 Strategic Planning: Effective cooperation for planning across boundaries

Page 203 2626 Appendix 4

Country recommendations: Scotland

The Scottish Government recently commissioned a review to enable delivery by including a delivery focussed Action of the Strategic Development Plans in Scotland. 24 It also 3URJUDPPHWKRVHOLQNVWRDQGLQÀXHQFHVGHFLVLRQVRQ subsequently published a response to this. 25 These have resources. SDPs, and their Action Programmes, should provided a useful focus for discussing the value of these be seen as investment strategies as well as planning plans as well as examining the issues of collaborative documents, that highlight future opportunities and assets leadership and governance; effective engagement and that are to be valued. SDP Action Programmes must be scrutiny; housing and community building; transport and clearer and stronger so that they become the delivery LQIUDVWUXFWXUHLQÀXHQFHRQGHOLYHU\DQGUHVRXUFLQJDQG document for spatial change within the city regions. skills. 6'3VSURYLGHDOHYHORISODQQLQJZKHUHRIWHQGLI¿FXOW 7KHUHYLHZXVHIXOO\UDLVHGWKHSUR¿OHRIVWUDWHJLF strategic decisions can be made and where future plans planning in Scotland and acknowledges the important for, and investment in, development and infrastructure can role that Scotland’s city regions play, not only in terms be linked to together. To do this there is a need to invest of housing the majority of Scotland’s population, but in the evidence base to ensure that decisions are made also as drivers of sustainable economic growth, and in on a sound basis and that progress on objectives can be terms of infrastructure and quality of life. The review and monitored and responded to. subsequent response from Scottish Government therefore act as a positive basis to build on the successes and Integration lessons learned from strategic planning in Scotland to SDPs are more than planning documents; they are date. investment and marketing tools demonstrating the way in which the city regions will be shaped over Role of Strategic Development Plans time. Given this, it is imperative that SDPs (and Scotland has four Strategic Development Plans (SDPs) Local Development Plans) are better connected to which are an important part of the planning framework Community Plans and single Outcome Agreements in Scotland. They provide the context for planning (SOAs). At present Community Plans and SOAs are not Scotland’s city regions of Glasgow, Edinburgh, Aberdeen always articulated spatially. Development plans provide and Dundee and work within the ambitions and priorities an opportunity to do this. There is scope for joining up set out in the National Planning Framework and Scottish the development process for each of these plans to Planning Policy. Scottish Government’s ongoing planning ensure that priorities, decision on investment and to reform and the move to a truly plan led system with a better connect consultation. There are also opportunities clear hierarchy of plans in Scotland, mean that SDPs for better integration in engaging with stakeholders play an important role in setting out the strategic spatial and communities and on monitoring and research. planning context for plan making, and crucially for delivery RTPI Scotland is currently undertaking work on the of development. disconnection between community planning and spatial SODQQLQJDQGDLPVWRSXEOLVK¿QGLQJVDQGVXJJHVWHG SDPs are prepared by Strategic Development Planning actions to tackle this. Authorities (SDPAs), which are groups of planning authorities working together to produce these plans. The Regional Transport Partnerships (RTPs) are currently SDPAs work to joint committees made up of councillors involved with Community Planning Partnerships, but from each of the authorities in the city region. SDPAs spatial planning does not have a seat at the table. There must be able to work in a context that allows them is a need to better link infrastructure to planning and to take long-term, high-level decisions which may be SDPs provide the means to do this. Given this there is contentious but which are required to ensure that the scope for increased alignment between SDPs and RTPs, city region functions economically, environmentally particularly the spatial strategy of SDPs which should set and socially. Governance and cultures must avoid the context for related strategies and policies, such as ‘beggar thy neighbour’ or parochial interests from transport. FRXQFLOORUVRURI¿FHUV SDPs need to be seen as key tools to provide certainty for planning authorities, developers, investors and communities. This requires them to provide a framework

24 http://www.scotland.gov.uk/Resource/0044/00448818.pdf 25 http://www.scotland.gov.uk/Resource/0045/00454434.pdf 27 Page 204 Appendix 4 Strategic Planning: Effective cooperation for planning across boundaries

Engagement Skills and resources SDPs must be seen as a key tool in providing a long term The issues of skills and resourcing for the public sector spatial strategy setting out what should be developed in general are key issues in this debate, and particularly where, and what should be protected and enhanced. the resourcing of SDPAs and planning authorities taking This will involve early engagement with key interests forward the SDP allocations and policies within their Local from the public sector, private sector and communities. Development Plans (LDPs). Resourcing of the SDPAs is We are pleased to see increasingly creative approaches a key consideration for the future, particularly given the being used by SDPAs in engaging with stakeholders small teams of strategic planners. There is a need to and are keen to see approaches developed that make ensure that the skills and knowledge sets required to HQJDJHPHQWOHVVRIDµRQHRII¶EXWUDWKHUPRUHRIDQ undertake strategic planning is not lost. Another key ongoing dialogue. Key to this is the need for SDPAs to consideration is increasing the level of understanding of be seen as key players in collaborative partnerships SDPAs amongst planning authorities, and this will involve for their areas that can help to bring together public an element of up skilling at both development planning sector bodies to agree what is in the plan and action and development management level. Investment in programme. training for political and professional leaders should be supported. Process There is concern that there have been no hearings on SDPs to date. The Development Plan Examination should still be in public where justice can be seen to be done. The lack of a hearing might be a problem in the sight of some sections of the community, insofar as objections went seemingly unheard.

(GLQEXUJK

Page 205 2828 Appendix 4

Country recommendations: Wales

There is a stakeholder consensus in Wales supporting the and set out the Welsh Government’s land use priorities. need for strategic planning decisions on a scale between The SDPs will be required to conform to the NDF and in local and national. The Wales Spatial Plan (WSP), though turn Local Development Plans (LDPs) will need to be in not a development plan and now out of date, continues conformity with the relevant SDP. to set the context for Local Development Plans (LDPs). Failure to review and validate the WSP means it has The RTPI supports the creation of a clear planning EHFRPHOHVVFUHGLEOHDQGXQDEOHWRIXO¿OLWVSODQQLQJ hierarchy within Wales, identifying what plans are needed function. and who should prepare these. However the creation of a further tier of plans between national and local needs The most populated areas of Wales face complex to be balanced against increasing the complexity of the spatial issues and since 2008, a decline in economic system. With a strategic planning framework, we believe growth. Matters relating to sustainable transport, that parts of mainly rural Wales may not need the addition energy generation and distribution, urbanisation, jobs of another plan layer. and housing, and environmental quality go across administrative boundaries in these areas. Sectoral We endorse the need for the strategic planning level to activities such as waste and transport planning create a have statutory underpinning for the best outcomes and compendium of separate plans with unaligned boundaries will require accountable collaboration to produce the and no single strategic function vision to guide public and SDPs and ongoing work required to keep them updated. private sectors for spatially interconnected areas. 7KH573,FRQVLGHUVWKHUHWREHDVWURQJMXVWL¿FDWLRQIRU Current collaborative working on LDPs is not binding on the governance of the SDP Panels to be democratically local planning authorities, consistent across boundaries DFFRXQWDEOHWRWKHFRQVWLWXHQWSDUWVRIWKHVXEUHJLRQ or in terms of stakeholder and public engagement, DUHD:HGRQRWVXSSRUWWKHLQFOXVLRQRIQRQHOHFWHG nor does it go through a scrutiny procedure. Following PHPEHUVRIWKH3DQHOVEXWGRVXSSRUWWKHRSWLRQIRUFR recommendations by the City Regions Task Force, opting specialist advisors to the Panels to provide advice City Regions were set up in 2013 in south east as required. Wales and Swansea Bay on the “basis of existing patterns of movement and the potential for increased The RTPI would expect SDPs to be: interconnectivity, together with the tradition of both social Focused: They should be ambitious yet prioritise and economic interdependence.” The Task Force also investment and levers that encourage investment. This noted the need for collaborative arrangements between includes clarity about appropriate areas for development the two areas to avoid “unproductive rivalry”. Furthermore, and protection with a focus on outcomes. it recommended a city region strategic planning tier similar to Scotland. Carl Sargeant, as the Minister with Scale: 7KH\VKRXOGUHÀHFWUHDOFRPPXQLWLHVRILQWHUHVW responsibility for planning in an interview published in and coherent social, economic and environmental areas. The Planner in October 2013, said that “the move aims to encourage private and public sector organisations to think Integrated: They should sit within the national framework beyond their geographical boundaries.” Consideration established by the NDF and bring together and reconcile will need to be given to whether these geographically the objectives of other strategies, both public and private, GH¿QHGDUHDVDUHUHOHYDQWIRUDFRPSOHWHVSDWLDOSODQQLQJ national and strategic, that are crucial to the delivery of approach for these parts of Wales. development.

In October 2014, the Planning (Wales) Bill was introduced 5REXVW\HWÀH[LEOH : They must be based on sound and to the National Assembly for Wales. The Bill includes transparent evidence that is subject to high level scrutiny powers for Welsh Ministers to designate strategic and regular monitoring. There should be a clear direction planning areas and for them to establish Strategic and scale of change at least in the medium term, without Planning Panels to prepare and keep under review a becoming static by being over prescriptive. Strategic Development Plan (SDP). Three areas are Inclusive 7KH\PXVWEHWUDQVSDUHQWDERXWGLI¿FXOW SURYLVLRQDOO\LGHQWL¿HGDVEHLQJWKHVXEMHFWRI6'3V decisions often evident at this level. SDPs should be these are broadly focussed on Cardiff, Swansea and the agreed democratically following substantive input from A55 Corridor. all communities of interest including business and public The Bill also includes proposals to introduce a National utilities. Development Framework (NDF) to replace the WSP

29 Page 206 Appendix 4 Strategic Planning: Effective cooperation for planning across boundaries

Recommendations for Northern Ireland

The Northern Ireland Regional Development Strategy The call in mechanism functions regionally for regionally (RDS), approved in January 2012, sets out the framework VLJQL¿FDQWGHYHORSPHQWSURSRVDOVRUSURSRVDOVWKDWDIIHFW for the spatial development for the Region up to 2035. development plans. 7KH5'6LVFURVVFXWWLQJZLWKOLQNDJHVWRRWKHUNH\ government policies and statutory legislation; it is the The Belfast Metropolitan Area Plan 2015 (BMAP) is a VSDWLDOUHÀHFWLRQRIWKHSURJUDPPHIRUJRYHUQPHQWDQG development plan being prepared under the provisions of the investment programmes that it gives rise to. There Part III of the Planning (Northern Ireland) Order 1991 by 26 must be strong buy in from all government departments the DOE. Although the BMAP has now been adopted, and the RDS needs to be kept up to date through a it is recommended that it be replaced at the earliest process of continuous or regular review at least coinciding opportunity by the new local authorities; plans prepared with the Assembly programme for government, which under the new system will be subject to the tests of XQGHUJRHVDIXQGDPHQWDOUHYLHZHYHU\¿YH\HDUV SRVW robustness and will need to conform to the RDS. It is Assembly election). anticipated that any new plans prepared within the ‘BMAP’ area will provide the sternest and most interesting test The RDS is a key document within the planning of the DOE in its oversight role and of the examination system. It sets out strategic guidance which is used in in public process and so are likely to mark a new phase the preparation of development plans, planning policy in the implementation of the new planning system in statements and urban regeneration initiatives. The Northern Ireland. current legislative requirement is that development plans, planning policy statements and development schemes are required to be “in general conformity with” the RDS.

Northern Ireland is currently in a transition phase in the establishment of a new planning system. The system SURSRVHGIRU1,IURP$SULOLVSODQOHGWKURXJKD system of Local Development Plans and work is currently underway to establish a Strategic Planning Policy Statement (SPPS) to replace the current system of PPSs.

Elections took place in 2014 for 11 new councils and they will take on planning powers from April 2015 to include preparation of local development plans, determining the majority of applications and taking enforcement action. The consensus view is that it is unlikely that the new councils will prepare joint plans in the initial phase and will instead focus on their own individual Local Development Plans (LDPs).

LDPs will need to take account of the RDS and this is the main way in which matters that cross between strategic (local authority) boundaries will be handled, LDPs must meet the tests of robustness against regional policy.

The Department of the Environment (DOE) has oversight of the plan making function and can enforce authorities WRFRRSHUDWHDWGLIIHUHQWOHYHOVZKROHSODQVRUSDUWV of plans. In the early phases of this process, it will be important for the new Councils to develop their own plans, and not necessarily look to collaborate on joint plans. Notwithstanding this, it will be important that they consider the impact of their plans beyond their own boundaries and the impact of neighbouring plans on their own areas.

26 Subject to a legal challenge as at 10.10.14 Page 207 3030 Appendix 4

Country recommendations: Ireland

Strategic planning in Ireland is undergoing a period of NSS was prepared and launched, is that the strategy has VLJQL¿FDQWFKDQJH)LUVWO\WKLVLVDVDFRQVHTXHQFHRIWKH become increasingly out of date. Consequently, there HIIHFWVRIORFDODQGUHJLRQDOJRYHUQPHQWUHRUJDQLVDWLRQ would appear to be a major gap in the structure and introduced in the Government’s October 2012 µ3XWWLQJ intentions for strategic planning as set out in the 2010 Act, 3HRSOH)LUVW±$FWLRQ3URJUDPPHIRU(IIHFWLYH/RFDO in contrast to what has been achieved through the RPGs Government ’ which was subsequently enacted in the covering the country. µ/RFDO*RYHUQPHQW5HIRUP$FW¶ . This resulted in the most fundamental changes in local government in The Local Government Reform Act replaces RPGs with WKHKLVWRU\RIWKH6WDWHZLWKWKHUHGXFWLRQRI3ODQQLQJ Regional Spatial and Economic Strategies (RSES), with authorities from 114 to 31, and the 8 regional authorities the former remaining in place until the latter have been DQGUHJLRQDODVVHPEOLHVUHFRQ¿JXUHGWRIRUPQHZ prepared and adopted. The RSES will be prepared by the regional assemblies. The second suite of changes will 3 regional assemblies, although there may be more than stem from the forthcoming review of the National Spatial one strategy in each area – this will be determined at the Strategy (NSS) and the new Planning Bill. regional level. Given the provision for the strengthening of the statutory linkage between the RPGs (now RSES) The combination of all of these measures will facilitate and the explicit requirement for the latter to support the opportunities to ensure that strategic planning functions implementation of the NSS under the 2010 Act, then are more effectively provided in the future. We believe the timing of the delivery of the new NSS must precede that the following principles should be adopted in doing that of the RSES. This is critical if the strategic planning this. framework of the country is to follow the objectives of the Act and ensure that the NSS does effectively lead, The NSS was launched in 2002 to provide a 20 year LQÀXHQFHDQGJXLGHWKHSUHSDUDWLRQRIWKH56(6DQG planning framework designed to deliver more balanced Development Plans/LAP and their respective Core social, economic and physical development between Strategies. This means that the NSS cannot shy away regions through providing strategic guidance for a range IURPPDNLQJGLI¿FXOWGHFLVLRQVRYHUVSDWLDOSULRULWLHVIRU of Government policies and Regional Planning Guidelines the greater good. It should, however, give weight to the (RPGs) and Development Plans/Local Area Plans (LAP). knowledge and experience derived from the preparation of RPGs and Development Plans in respect of the However, based on the experience and issues of how function and nature of the settlement hierarchy as these these tiers worked together following the introduction of the RPGs to the planning system in 2004, the Planning JHQHUDOO\ZHOOUHÀHFWWKHUHDOLVPRIERWKDFWXDODQG and Development (Amendment Act) 2010 provided for a SRWHQWLDO7KLVLVVSHFL¿FDOO\LGHQWL¿HGDVDUHTXLUHPHQWLQ the designation of Gateways and Hubs in any new NSS, stronger statutory link between the NSS and RPGs, with with the need to get back to strategic planning principles. there being an explicit requirement under the Act that RPGs be prepared in order to support the implementation Additionally, given their importance in national and of the NSS. Additionally, under Section 27 (1) of the regional strategic planning, the designation of Strategic Act, a Planning Authority must ensure when making a Development Zone (SDZ) schemes requires an integrated Development Plan or LAP that the plan is ‘consistent’ DSSURDFKUHÀHFWHGDQGUHVSRQGHGWRLQWKHQHZ166 with the RPGs in force for its area. A key mechanism to and RSES, with all levels of Government and different ensure this was the introduction of evidence based Core Government agencies involved in the preliminary Strategies, with the former requiring to be compliant with selection of candidate SDZ prior to progression towards the latter. Draft Planning Scheme. This is important if the integrity and strategic objectives of SDZ are to be secured and Experience and feedback from planners in different delivered. levels of government and other planning practitioners, is that this on the whole at the local and regional levels 2QHRIWKHNH\UROHVLGHQWL¿HGDVEHLQJWKHSXUSRVHRIWKH is now deemed to be effectively working, providing the 2002 NSS was that of guiding Government Departments balances and checks which were not previously in place. and agencies in formulating and implementing policies However, the key issue which has prevailed, particularly and public investment decisions which have a strong in more recent years given the very different economic spatial dimension or may otherwise be affected by spatial circumstances that have been experienced since the considerations.

56 RTPI (2012) Policy Statement on Initial Planning Education. Available at: KWWSZZZUWSLRUJXNPHGLDPLFURVRIWBZRUGBBSROLF\BVWDWHPHQWBRQBLQLWLDOBSODQQLQJBHGXFDWLRQBSGI 57 7KH6FRWWLVK*RYHUQPHQW  &UHDWLQJ3ODFHV$OLJQLQJ&RQVHQWV$YDLODEOHDWKWWSFUHDWLQJSODFHVVFRWODQGRUJGHVLJQLQJVWUHHWVSURFHVVDOLJQLQJFRQVHQWV 31 Page 208 Appendix 4 Strategic Planning: Effective cooperation for planning across boundaries

This is embodied in the 2010 Act in respect of RSES Strategic planning in the Republic of Ireland cannot be through the process of consultation with Government looked at in isolation from that in Northern Ireland. This is departments and other public bodies. VSHFL¿FDOO\EXWQRWH[FOXVLYHO\LQUHVSHFWRIWKH%RUGHU counties and the Dublin – Belfast Economic Corridor. These principles remain at the heart of integrated and The principles of a mutually agreed approach is set down effective strategic planning but are often undermined by in both jurisdictions’ current spatial/strategic planning different agencies seeking to protect and promote their strategies but a greater commitment to these principles autonomy, visions and objectives, with little deference is required together with more clarity on mechanisms of given to what underpins the Government’s strategic delivery. planning objectives at the national and regional levels. 7KH166DQG56(6PXVWLQÀXHQFHDQGFRQWULEXWHWR 3XWWLQJ3HRSOH)LUVW puts a strong emphasis on other Government strategies. The Government should accountability as the bedrock of a properly functioning ensure that the NSS and RSES are corporate documents system of local democracy, providing better engagement WKDWLQÀXHQFHRWKHUNH\*RYHUQPHQW'HSDUWPHQWVDQG with citizens, as well as other stakeholders. In respect of associated state development agencies i.e. Irish Water, WKHIRUPHUWKLVLVRIWHQGLI¿FXOWDWWKHVWUDWHJLFSODQQLQJ Coilite, Teagasc etc. strategies, for example, the National level given it is perceived as distant as against plan Development Plan, infrastructure investment such making at the more local level. Additionally, particularly as under: the National Roads and National Transport in recent years, engagement has been hampered by the Authorities; communications, energy and natural ODFNRIVWDI¿QJWRXQGHUWDNHWKLV+RZEHWWHUWRGRWKLVDQG resources; marine planning and climate change. Both resource it must be given weight on the Delivering People QHHGWREHDEOHWRLQÀXHQFHGHFLVLRQVRQLQYHVWPHQW First agenda if the strong emphasis on accountability and and resources to ensure that we make best use of engagement at all levels of planning is to be achieved. existing built environment and infrastructure and any new development and/or infrastructure.

6DPXHO%HFNHWW%ULGJH'XEOLQ

Page 209 3232 Appendix 4

Acknowledgements

The RTPI would like to thank all the people and Durham organisations who made submissions to the call for 5LFKDUG$UNHOO 573,1( &DUROLQH%XUGHQ,DQ&DQV¿HOG &XQGDOO -R$QQH*DUULFN 1RUWKXPEHUODQG&& $QGUHD evidence in early 2014. King (South Tyneside Council), Stephen Litherland (Bellway Homes), John Lowther, John Mawson (Institute for Local Governance), Chris Pipe (Hartlepool BC), Special thanks go to AECOM, West Suffolk Council, Lee Pugalis (Northumbria University), Alan Townsend University of the West of England, University of Liverpool (University of Durham), Stuart Timmiss (Durham Dept of Geography + Planning, Hesletine Institute for CC), Jonathan Wallace (NLP), Katherine Whitwell Public Policy and Practice, Van Mildert Coll. & Institute for (Middlesbrough Council), Neil Wilkinson, (Gateshead Local Governance, Durham, Birmingham City University, MBC) /HHGV&LW\&RXQFLO6RXWKDPSWRQ&LW\&RXQFLO*O\QGǒU University, Colliers International. Leeds Simon Smales (RTPI Yorkshire) Tom Bridges (Leeds City Round table participants: Council), Colin Blackburn (Leeds City Region) Phil Crabtree (Leeds City Council), Richard Crabtree London (1) (Homes and Communities Agency), John Craig (East Tony Baden, Duncan Bowie (University of Westminster), Riding of Yorkshire Council), Gordon Dabinett (University Daniel Bridge (GLA), Alex Csiscek (GLA Labour Group), RI6KHI¿HOG %KXSLQGHU'HY &LW\RI%UDGIRUG&RXQFLO  Sarah Elliott (AECOM), Kayvan Karimi (Space Syntax), Michael Dross (Munich Technical University), Jeff English Andrew Jones (AECOM), Meeta Kaur (KMW SK Berwyn), 0HWUR 1HYLOOH)RUG :DNH¿HOG&RXQFLO $QWRQ\)LUWK John Letherland (Farrells), Charlotte Morphet (CGMS), Highways Agency), Andy Haigh (Consultant), Nicole Janice Morphet (UCL), Cath Ranson (RTPI President), Harrison (Arup), John Jarvis (John Jarvis Consulting Marc Stringa (AECOM), Lisa Skinner (Alliance Planning), Ltd), Peter Nears (Peel Holdings), Nathan Smith (Turley), Tom Venables (AECOM) 0DOFROP7DLW 8QLYHUVLW\RI6KHI¿HOG .HYLQ7KRPDV (Leeds Metropolitan University), Bob Wolfe (RTPI Bury St. Edmunds Yorkshire), Richard Wood (O’Neill Associates) Paul Maison (RTPI East of England), David Potter, Peter Warner, Rob Hobbs (Ipswich Borough Council), Steve Birmingham Bateman, Jackie Ward, Liz Beighton (Suffolk Coastal John Acres (Turley Associates), Gill Bentley (University of District Council), John Young, Richard Summers (Spatial Birmingham), John Careford (Stratford DC), Dave Carter St Edmunds) (Birmingham CC), Jim Davies (Environment Agency), Andrew Donnelly (West Midlands Joint Committee), Bristol Sandra Ford (HCA ATLAS), Steve Forrest (RTPI Janet Askew (UWE), John Baker (Peter Brett Associates), Member), Ghaz Hussain (Birmingham CC), Mark Jackson Martin Boddy (UWE), Steve Briggs (Smiths Gore), (DTZ), Gerald Kells (Planning Consultant), Sue Manns Ian Collinson (HCA ATLAS), Patrick Conroy (South (Pegasus Group), Mark Middleton (BCU/RTPI Partnership Gloucestershire Council), Sean Lewis (UWE), Sarah Board), Julie Morgan (Miller Homes), Alan Murie (West O’Driscoll (Bristol CC), Leonora Rozee, Nick Smith (UWE) Midlands Futures Network), Mark Parkinson (Staffordshire CC), Stefan Preuss (National Grid), Lindsey Richards Liverpool (HCA), Alister Scott (Birmingham City University), Sam Silcocks (Harris Lamb), Mike Smith (Walsall Council), Grant Butterworth (Liverpool City Council), Mark Roger Stone, David Thew (West Midlands Futures Chadwick (Environment Agency), Gary Collins (Cheshire Network), Paul Tomlinson (URS), Mandy Walker, & Warrington LEP), Neil Cumberlidge, Fiona Fordham :DUZLFNVKLUH&RXQW\&RXQFLO$ODQ:HQEDQ6PLWK (Defra), Paul Grover (Arup), Alan Harding (Heseltine (consultant) Institute), Julian Jackson (Cheshire East Council), Duncan McCorquodale (Cheshire West & Chester Council), Walter Menzies (Atlantic Gateway), Andrew Murray (Manchester Airport), Peter Nears (Peel Holdings), Paul Sheppard (IBI Taylor Young), John Sturzaker, Olivier Sykes & Ian Wray (University of Liverpool)

33 Page 210 Appendix 4 Strategic Planning: Effective cooperation for planning across boundaries

Southampton RTPI South East and University of Steve Avery (New Forest NPA), Kay Brown (Southampton Reading held a “Planning Question Time” evening CC), Charlie Collins (Savills), Pete Errington (Hampshire in March 2014 at which a panel discussed the issue of CC), Louise Evans (New Forest DC), Ryan Johnson strategic planning with particular reference to South East (Turley Associates), Phil Marshall (Hampshire CC), Adele England. Mayer (Havant BC), Paul Nichols, Chair (Southampton CC), Wendy Pereira (IOW Council), Vicky Piper (Portsmouth CC), Graham Tuck (Southampton CC), Tony Wright (Eastleigh BC) Photos courtesy: Front cover Dublin & page 32 Samuel Beckett Bridge, Dublin Jerry Barnes (MDB), Aidan Culhane (DoECLG) credit: mady70 Paraic Fallon (Dublin City Council), Berna Grist, (University College Dublin), Eamonn Kelly (RPS), Front cover Aoife Moore (Midlands Regional Authority), & page 9 /LOOH(XURSH±)OLFNU$QWRQLR3RQWH Conor O’ Donovan (National Transport Authority) Page 10 0DQFKHVWHUE\QLJKW)OLFNUSXUSOHPDWW¿VK John Ring (Knight Frank), Robert Ryan (An Bord Pleanala), Marion Chalmers (RTPI Ireland) Page 11 Trumpington Meadows, Cambridge courtesy Wrexham of Barratt Homes Allan Archer (RTPI Cymru), Charlotte Beattie (Wrexham County Borough Council), Jonathan Cawley (Snowdonia Page 12 Gun Wharf Quays, Portsmouth – Flickr: National Park), Nicola Corbishley (Wrexham County Chalke_cc Borough Council), Mike Cuddy, Mark Farrar, Mark Page 12 Harris (Bridgend County Borough Council), Matthew & 26 The Library of Birmingham – credit: Price (Cardiff City Council), Karen Potter (University of Birmingham City Council Liverpool), Ian Stevens (Conwy County Borough Council), Clare Taylor (MWH Global), Jan Tyrer, Owain Wyn Page 13 Clyde Waterfront – courtesy of Glasgow City Council London (2) Jonathan Manns (Colliers), Adrian Brown (Berkeley Page 14 City Hall, London – credit: Bill Smith Strategic), Nick Baker (Legal and General), Pippa Aitken Page 15 Dundee Waterfront – credit: Dundee City (Colliers), Catriona Riddell, Iain McSween (Commerical council Estates), Jon Kenny (Commerical Estates), Mark Gilpin (Inland Homes), Ken Hopkins (Mactaggart and Mickel), Page 16 Gold Coast, Queensland, Australia – Tony Aitken (Colliers), Mark Sitch (Barton Willmore), creditzstockphotos Matthew Spry (NLP), Sue Janota (Surrey CC), Joseph Pearson (Mid Sussex DC), Jerry Unsworth (District Page 17 Cardiff Bay – Flickr: identity chris is Councils’ Network), Sarah Ball (Royal Borough of Windsor Page 18 Walsall Art Gallery – Flickr: Tony Hisgett and Maidenhead) Page 19 Trinity Bridge – Flickr: Pimlico Badger Edinburgh Robin Holder (Holder Planning), David Jennings Page 20 Enniskillen Castle, Fermanagh – Flickr: (Aberdeen City & Shire SDPA), Bill Lindsay (Fife Council, PPCC Antifa representing HoPS), John McCarthy (Heriot Watt Page 28 & University), Ewan MacLeod (Shepherd & Wedderburn), Back cover Edinburgh – courtesy of Alan Laughlin Blair Melville (Homes for Scotland), Kevin Murray (Kevin Murray Associates), Graeme Purves, Stuart Tait (Glasgow & Clyde Valley SDPA), Carrie Thomson (Scottish Government), David Anderson (Transport Scotland), Cliff Hague (Built Environment Forum Scotland)

Page 211 3434 Appendix 4

RTPI - Royal Town Planning Institute [email protected] Tel: 020 7929 9494

Royal Town Planning Institute, 41 Botolph Lane, London EC3R 8DL. Registered Charity in England (262865) & Scotland (SC037841)

Page 212 Appendix 5 Scottish Planner: Update

Update: RTPI Policy Paper Strategic Planning: Effective Cooperation for Planning Across Boundaries Richard Blyth MRTPI Head of Policy Pratice Richard Blyth, Head of Policy, Practice and Research & Research RTPI richard.blyth@rtpi for RTPI outlines the key recommendations for org.uk Scotland in the recently published RTPI Policy Paper. @richardblyth7

The RTPI Strategic Planning Policy Paper Integration Plan Examination should still be in public looks at current and potential strategic SDPs are more than planning documents; where justice can be seen to be done. The planning practices across the UK and Ireland, they are investment and marketing tools lack of a hearing might be a problem for and uses case studies, including TAYplan demonstrating the way in which the city some sections of the community, insofar as and ClydePlan in Scotland to demonstrate regions will be shaped over time. Given objections went seemingly unheard. some General Principles for strategic this, it is imperative that SDPs (and Local planning, before going on to make specific Development Plans) are better connected Skills and Resources recommendations for the individual nations. to Community Plans and Single Outcome The issues of skills and resourcing for the For Scotland, the recommendations focus on Agreements (SOAs). public sector in general are key issues in integration, engagement, process and skills this debate, and particularly the resourcing and resources: Engagement of SDPAs and planning authorities taking SDPs must be seen as a key tool in providing forward the SDP allocations and policies Role of Strategic Development Plans a long term spatial strategy setting out what within their Local Development Plans. Scottish Government’s ongoing planning should be developed where, and what should There is a need to ensure that the skills reform and the move to a truly plan led be protected and enhanced. This will involve and knowledge sets required to undertake system with a clear hierarchy of plans in early engagement with key interests from the strategic planning are not lost. I Scotland mean that Strategic Development public and private sector, and communities. Plans (SDPs) play an important role in setting Key to this is the need for SDPAs to be seen out the strategic spatial planning context as key players in collaborative partnerships for plan making, and crucially for delivery of for their areas that can help to bring together The Strategic Planning Policy Paper is development. SDPAs must be able to work public sector bodies to agree what is in the available to read in full on the RTPI website in a context that allows them to take long- Plan and Action Programme www.rtpi.org.uk/media/1230885/RTPI- term, high-level decisions which may be Strategtic%20Planning-Brochure%20 contentious but which are required to ensure Process FINAL%20web%20PDF.pdf that the city region functions economically, There is concern that there have been no environmentally and socially. hearings on SDPs to date. The Development

SDPs need to be seen as key tools to provide certainty for planning authorities, developers, investors and communities. This requires them to provide a framework to enable delivery by including a delivery focussed Action Programme that links to, and influences decisions on, resources. SDPs, and their Action Programmes, should be seen as investment strategies, as well as planning documents, that highlight future opportunities and assets that are to be valued. SDP Action Programmes must be clearer and stronger so that they become the delivery document for spatial change within Photo credit - Alan Laughlin the city regions.

Page 213 www.rtpi.org.uk/scotland Scottish Planner 17 This page is intentionally left blank

Page 214 Appendix 6 Aberdeen City Centre

Your city centre: what you told us Masterplan and Delivery Programme

Draft masterplan stage Exhibition and consultation brochure See back two pages for questionnaire

For more information please visit www.aberdeencity.gov.uk/shapingaberdeen

Consultation running from 14 to 29 March 2015 Page 215 Appendix 6

In mid-2014, Aberdeen City Council appointed an international team of specialists, led by BDP, to help devise a city centre masterplan. This team has been working with the community, agencies, local businesses and our own Council staff to develop this long-term plan for the city centre.

Aberdeen has a distinctive, dignified and attractive centre, built up by various bold moves over the centuries, such as the construction of Union Street and creation of the harbour from the Dee Estuary. BDP has been asked to help set out the cycle of key moves we need to make over the next 20 years.

The masterplan team worked closely with people who live and work in and around Aberdeen, as well as business and educational communities, and various interest and activity groups. In November, people commented on the emerging strategy and themes, for which there was significant cross- community support.

The latest stage of engagement seeks views on the draft masterplan ideas and proposals. We would like to know what you think of the ideas and possible projects emerging so far.

This is not the end of the process. BDP and the Council team will reflect on the feedback and refine the ideas, and consider how the various projects link up and might be funded and delivered. This will take a few more weeks with the final masterplan approved in summer.

In the meantime, we hope you will take time to reflect on the propositions in the following pages and advise us on your thoughts about both the general content and specific proposals. You can do this by completing the attached questionnaire or completing it online at: www.aberdeencity.gov.uk/ shapingaberdeen

Thank you for your time and consideration.

Councillor Marie Boulton, Deputy Council Leader Chair of Regeneration Working Group

Page 216 Appendix 6 Introduction 1

This exhibition is the third public engagement stage in developing the Aberdeen City Centre Masterplan and Delivery

Programme. KI

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TANE P NGS is due to take nine months. LA NE LL LA MI TICE JUS The initial consultation and engagement stage took place in late September 2014 and focussed on the ST ESPLANADE WE RTH key issues, challenges and people’s NO

T ES W ideas for the city centre. The second DE A AN PL ES TH engagement stage took place in SOU November when feedback on the emerging vision, objectives and project ideas was sought.

In developing the masterplan, we have tried to reflect the views and aspirations of local people and community and business stakeholders. This exhibition sets out how community feedback has influenced the draft masterplan and explains why some ideas have not been taken forward.

This exhibition also shows:

2 Earlier consultation stages; 3 Masterplan vision and objectives; 4 Streets for people; 5 Keep on moving; 6 Greening the city; 7 Urban living; 8 City centre employment; 9 Happy shoppers; 10 Distinctive design for life; 11 Street life; 12 The draft masterplan and delivery programme.

Page 217 Appendix 6 2 Earlier consultation

We began the community We returned in November 2014 engagement process in September with a preliminary vision and set Vision and 2014 by providing the opportunity of objectives, four draft masterplan objectives for people to tell us what they themes and a selection of projects. thought the key issues were in Thank you to all who gave their You said: Aberdeen city centre and to share feedback during the November their aspirations. events, we had more than 620 i0WFSBMM
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Vision You said: The vision for Aberdeen city Cities around the world are centre is: constantly adapting themselves, “We need to work searching for new ways to address “Aberdeen: A city towards a longer economic, environmental and social sustainability, while ensuring centre for a global term plan… and the spatial quality of their city addresses both current needs and city.” stick with it.” future aspirations. The development of Aberdeen’s city centre requires strategic direction so that it can continue to develop as a remarkable 21st century destination for citizens, visitors and businesses. The purpose of the masterplan is: The masterplan seeks to communicate the aspirations of Aberdeen as a progressive global “Energising the city city. With a strategic approach centre to deliver to quality and investment, it aims to become a sustainable prosperity and city, protecting and enhancing its economic, cultural and better quality of life environmental assets on an for all.” international stage.

Objectives

Our analysis identified that Aberdeen Shire. We identified eight objectives in the masterplan and delivery city centre does not reflect the (outlined below) for the masterplan programme aim to meet and fulfil ongoing economic success and and delivery programme. The these cross-cutting objectives. quality of life of Aberdeen City and projects and proposals identified

Changing perceptions Made in Aberdeen Promoting the view of Aberdeen city centre as Building on local distinctiveness and maximising an energetic, inclusive and fascinating place local business opportunities. where people will want to live, work and visit.

Growing the city centre Revealing waterfronts employment base Exploiting the varied waterscapes of Aberdeen Creating a stronger and more diverse city city centre, creating attractive settings and centre economy. opportunities for interest and activity.

A metropolitan outlook Technologically advanced and Ensuring the city centre meets the needs of the environmentally responsible wider population of Aberdeen City and Shire Providing the capacity, quality and reliability and beyond and is specifically planned and of infrastructure required by businesses and governed to reflect this wider metropolitan residents and utilising resources responsibly. role.

A living city for everyone Culturally distinctive Increasing housing in Aberdeen city centre Ensuring Aberdeen city centre reflects its and creating a more liveable place. distinctive local culture so it is like no other place.

Page 219 Appendix 6 4 Streets for people

These images illustrate the vision of the consultant team and not those of landowners or tenants.

You said: “Remove some of the cars… there should be more space for people and cyclists.” Union Street - Proposal to retain buses and taxis, but to remove private cars and create wider pavements in high quality materials.

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You said: “Sort the traffic out.”

These images illustrate the vision of the consultant team and not those of landowners or tenants.

Guild Street - Proposal to retain bus and taxi access, but to remove private cars and create a new gateway building for the railway station.

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for new city centre development Page 221 Appendix 6 6 Greening the city

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New entrance Refurbishment Enhanced landscaping from Union of Victorian and accessible routes Street toilets

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Queen Square - Proposed residential quarter with ground floor commercial uses.

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Page 223 Appendix 6 8 City centre employment

You said: “Aberdeen has suffered from jobs being located all around the city and not enough in the city centre.”

These images illustrate the vision of the consultant team and not those of landowners or tenants.

North Dee Business Quarter - The global energy hub (North Esplanade).

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North Dee Business Quarter - More than 100,000 sq m (1M sq ft) high-specification office development. Page 224 Appendix 6 Happy shoppers 9

You said: “We need a better range and quality of shops for different ages.”

These images illustrate the vision of the consultant team and not those of landowners or tenants.

St Nicholas Centre - Proposed winter garden and food court.

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Page 225 Appendix 6 10 Distinctive design for life

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respect the character Union Street West - Enhanced streetscape of the city centre.” and proposed Aberdeen City Rooms.

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These images illustrate the vision of the consultant team and not those of landowners or tenants.

You said: “There should be more community events, activities and happenings in the city.”

Castlegate - Proposed resurfacing and seasonal events programme.

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temporarily and hold events in the city centre e.g. Broad Street, Union Street. Page 227 Appendix 6 12 The draft masterplan and delivery programme

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make it physical location of the people in the future delivery programme. happen?” main projects outlined in the document.

8

KING S

4 TREET 13 6 20 BROAD STREET UPPERKIRKGATE 4 7 5 1 3 15 SCHOOLHILL 7 10 5 MARISCH A L S T 19 R EET 2

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JUSTICE MILL LANE

Masterplan projects Existing proposals

1 Aberdeen City Rooms (built environment centre ) 1 Aberdeen Art Galley extension

2 Aberdeen Creative Space (low cost commercial space) 2 Proposed Ardent House (o!ce)

3 Aberdeen Indoor Market 3 Proposed Malmaison / Hotel de Vin

4 Bon Accord Shopping Centre 4 Marischal Square (o!ce, hotel/leisure and retail) 12

5 Castlegate 5 Mither Kirk Project 8 6 Castlehill (residential) 6 Music Hall renovation

7 Conservation Area improvement scheme 7 Proposed hotel and restaurant WEST DE 8 Global Energy Hub (innovation centre) 8 Proposed Sandmarn hotel 2 ESPLANA RTH 9 Hotel Academy 9 The Capitol development (o!ce) NO

10 Independent Aberdeen (independent retail, food and drink) 10 Triple Kirks development (o!ce) 11 11 New pedestrian and cyclist bridge

12 North Dee business quarter (o!ce) ST WE 13 Queen Square (residential-led mixed use) NADE LA 14 Regent Quay (residential) 9 SOUTH ESP 15 St. Nicholas Shopping Centre

16 Railway Station Gateway (station redevelopment, hotel and retail) 17

17 South Dee (residential mixed-use)

18 Union Square Shopping Centre

19 Union Terrace Gardens

20 Woolmanhill (residential-led mixed-use and hotel)

Page 228 Appendix 6 Questionnaire

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any any projects (Page 4) projects you that Do you support support? give you concern? the theme No No No of providing more space for people Don’t Don’t Don’t know know know

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Page 229 Appendix 6 )BQQZ
Yes Are there Yes If yes, what are they? Are there Yes If yes, what are they? TIPQQFST any any projects (Page 9) projects you that Do you support support? give you the theme of No No concern? No providing a better range and quality of shops for Don’t Don’t Don’t different ages? know know know

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MJGF Yes Are there Yes If yes, what are they? Are there Yes If yes, what are they? (Page 11) any any projects Do you support projects you that the theme of support? give you providing more No No concern? No community events and activities? Don’t Don’t Don’t know know know

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/BNF

$POUBDU
Address / Phone / Email

Please return your completed response form to Marischal College or fill it out online at www.aberdeencity.gov.uk/shapingaberdeen. Opening times: Mon – Fri, 8am – 5.30pm (closed Saturday and Sunday) by 29th March. 2015.

5IBOL
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DPOUSJCVUJPO Page 230 Appendix 7 SCOTLAND’S ECONOMIC STRATEGY SUMMARY Page 231

www.gov.scot/economicstrategy Appendix 7

FOREWORD Scotland’s Economic Strategy sets out an overarching framework for how we aim to achieve a more productive, cohesive and fairer Scotland. It forms the strategic plan for existing and all future Scottish Government policy.

Creating greater prosperity and fairness is a

Page 232 shared national endeavour. Only by working in partnership with the wider public sector in Scotland, the third sector, trade unions, businesses and communities, will we be able to create a society where the benefits of economic Since 2007, this Government’s central growth are shared more equally and where future economic growth is stronger and purpose has been to create a more more sustainable. successful country, with opportunities for all of Scotland to flourish, through increasing sustainable economic growth. This remains the Government’s ambition to which all our efforts and actions are directed and is at the core of our Nicola Sturgeon MSP Economic Strategy. First Minister of Scotland

SCOTLAND’S ECONOMIC STRATEGY 01 Appendix 7

OVERVIEW

The purpose of the Scottish Government and its partners remains to make Scotland a more successful country, with opportunities for all to flourish, through increasing sustainable economic growth.

Scotland’s Economic Strategy focuses on the Page 233 two mutually supportive goals of increasing competitiveness and tackling inequality and our approach to delivering this is underpinned by four priorities for sustainable growth.

SCOTLAND’S ECONOMIC STRATEGY 02 Appendix 7

FOUR PRIORITIES

1. Investing in our people and our infrastructure in a sustainable way;

2. Fostering a culture of innovation and research and development;

Page 234 3. Promoting inclusive growth and creating opportunity through a fair and inclusive jobs market and regional cohesion; and

4. Promoting Scotland on the international stage to boost our trade and investment, influence and networks.

SCOTLAND’S ECONOMIC STRATEGY 03 Appendix 7

Scotland’s Economic Framework

PURPOSE

Increasing growth and Page 235 COMPETITIVENESS tackling TACKLING INEQUALITY inequality are mutually supportive

Investment Innovation Inclusive growth Internationalisation

SCOTLAND’S ECONOMIC STRATEGY 04 Appendix 7

FOUR PRIORITIES

Our four priority Education, skills and health Business innovation and entrepreneurship areas – investment, Infrastructure and digital Workplace innovation innovation, inclusive Business investment and digital growth, and Natural capital, resource Commercialisation of internationalisation efficiency and low carbon research and development Communities, local assets INVESTMENT INNOVATION Public services – are underpinned and housing Page 236 by a number of the Scottish Government’s key policies which will help us achieve Trade INTERNATION- INCLUSIVE Fair Work ALISATION GROWTH our mutually Investment Business pledge International connectivity Promoting equality and supportive goals of tackling inequality Global outlook, influence competitiveness and and networks Place and regional cohesion tackling inequality.

SCOTLAND’S ECONOMIC STRATEGY 05 Appendix 7

SCOTLAND’S STRENGTHS

Scotland is a wealthy and productive country. We have:

A highly-skilled workforce and a long-standing reputation for innovation;

Internationally recognisable brands and products, and companies competing Page 237 successfully in global markets;

Strengths in a diverse range of sectors including Food and Drink, Financial and Business Services, Life Sciences, Energy, Tourism and Creative Industries.

SCOTLAND’S ECONOMIC STRATEGY 06 Appendix 7

Whilst the Scottish economy has many strengths, we must continue to take action to reduce inequality

Whilst income inequality in Scotland is lower than in the UK as a whole, it remains too high. Of the 34 OECD countries, the UK is ranked 29th in terms of income inequality (ie 6th worst) and Scotland would rank 20th; Page 238

International evidence shows that inequality has a negative impact on long-term growth and prosperity. The OECD estimate that rising income inequality in the UK reduced GDP per capita growth by 9 percentage points between 1990 and 2010;

This is why creating a fairer society is not just a desirable goal in itself, but is essential to the sustained, long-term prosperity of the Scottish economy.

SCOTLAND’S ECONOMIC STRATEGY 07 Appendix 7

Scotland has a strong economic base, which we will build on to create an economy where:

There is high Participation and Productivity ;

Employers and employees invest in a shared vision ;

Page 239 Fair Work is rewarded; and

Economic success is recognised and celebrated by all.

SCOTLAND’S ECONOMIC STRATEGY 08 Appendix 7

KEY ACTIONS IN OUR FOUR PRIORITY AREAS Page 240

SCOTLAND’S ECONOMIC STRATEGY 09 Appendix 7

1. INVESTING IN OUR PEOPLE, INFRASTRUCTURE AND ASSETS IN A SUSTAINABLE WAY Page 241 1

SCOTLAND’S ECONOMIC STRATEGY 10 Appendix 7

1. INVESTING IN OUR PEOPLE, This strategy sets out how we will: INFRASTRUCTURE AND ASSETS Invest in Scotland’s people at all stages of life IN A SUSTAINABLE WAY to ensure that we have a well-skilled, healthy and resilient population and an innovative, Investment – whether in our people, engaged and productive workforce; infrastructure or businesses – is key to driving long-term improvements Provide the physical and digital connectivity needed to ensure that all of Scotland is open in competitiveness and in creating to the national and global economy and is Page 242 opportunities for everyone in society able to access high quality public services; to benefit from these improvements. Invest in Scotland’s infrastructure to help Scottish businesses to grow, innovate, and create good quality employment opportunities;

Prioritise our investment to ensure that Scotland protects and nurtures its natural resources and captures the opportunities offered by the transition to a more resource- efficient, lower carbon economy; and

Invest in strengthening the success and resilience of local communities.

SCOTLAND’S ECONOMIC STRATEGY 11 Appendix 7

2. FOSTERING A CULTURE OF INNOVATION Page 243 2

SCOTLAND’S ECONOMIC STRATEGY 12 Appendix 7

2. FOSTERING A CULTURE OF INNOVATION Innovation is a fundamental driver of This strategy sets out how we will: long-term competitiveness and sustainable growth. More innovative economies are Support the development of highly-innovative businesses across the Scottish economy; more likely to have the capacity to be more resilient to changing economic conditions Encourage more of Scotland’s diverse and have greater ability to succeed in business base to engage in innovation

Page 244 international markets. and research and development as part of their day-to-day activities;

Continue to support the high-impact, world- class research of Scotland’s universities and improve levels of commercialisation of academic research;

Develop with key partners, such as business organisations and trade unions, innovative approaches to developing progressive workplace practices; and

Develop and deliver new approaches to public service reforms and make better use of our public procurement to drive innovation.

SCOTLAND’S ECONOMIC STRATEGY 13 Appendix 7

3. PROMOTING INCLUSIVE GROWTH Page 245 3

SCOTLAND’S ECONOMIC STRATEGY 14 Appendix 7

3. PROMOTING INCLUSIVE GROWTH

A more cohesive economy that improves This strategy sets out how we will: the opportunities, life chances and wellbeing of every citizen in our country, Promote Fair Work and build a labour market not only improves outcomes for individuals that provides sustainable and well-paid jobs; and households, but is a critical driver Address long-standing barriers in the labour of improved economic performance over market so that everyone has the opportunity Page 246 the long term. to fulfil their potential;

Tackle cross-generational inequality through, for example, improved childcare, boosting attainment and early years interventions that give every child a fair start in life; and

Realise opportunities across Scotland’s cities, towns and rural areas, capitalising upon local knowledge and resources to deliver more equal growth across the country.

SCOTLAND’S ECONOMIC STRATEGY 15 Appendix 7

4. INTERNATIONALISATION Page 247 4

SCOTLAND’S ECONOMIC STRATEGY 16 Appendix 7

4. INTERNATIONALISATION

Scottish economic success will be realised This strategy sets out how we will: through strengthening our links with the global economy and the opportunities Support Scotland’s exporters to grow into this brings for increasing trade, attracting new markets and expand their presence in key traditional markets such as the EU and investment and sharing expertise. North America; Page 248 Encourage a more export-orientated focus across all businesses and sectors in Scotland, and, in particular, amongst our small and medium-sized enterprises;

Create the underlying conditions which will continue to make Scotland a major destination for investment;

Use Scotland’s influence in Europe and, more widely, to support our international ambitions and to continue to make the case for Scotland to remain a member of the EU;

SCOTLAND’S ECONOMIC STRATEGY 17 Appendix 7

Promote Scotland’s international brand and showcase both Scotland and Scottish goods and services internationally, and secure major international cultural and sporting events; and

Publish an International Framework, which will set the context for how the Government, its Agencies and Public Bodies, engage externally to promote Scotland – its economy and broader interests – and influence the

Page 249 world around us.

SCOTLAND’S ECONOMIC STRATEGY 18 Appendix 7

HOW DO WE DRIVE CHANGE?

Leadership Leading change and demonstrating best practice.

Partnership Between all parts of the public sector, employers, the third sector and trade unions. Page 250

Focus Tailoring policies to reflect our four priorities – innovation, inclusive growth, investment, and internationalisation.

Delivery Aligning the whole Public Sector behind a common vision: One Scotland Partnership.

SCOTLAND’S ECONOMIC STRATEGY 19 Appendix 7

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Page 252 Appendix 8 Superfast broadband for Scotland A progress report

Prepared by Audit Scotland February 2015

Page 253 Appendix 8

Auditor General for Scotland The Auditor General’s role is to: • appoint auditors to Scotland’s central government and NHS bodies • examine how public bodies spend public money • help them to manage their finances to the highest standards • check whether they achieve value for money.

The Auditor General is independent and reports to the Scottish Parliament on the performance of: • directorates of the Scottish Government • government agencies, eg the Scottish Prison Service, Historic Scotland • NHS bodies • further education colleges • Scottish Water • NDPBs and others, eg Scottish Police Authority, Scottish Fire and Rescue Service.

You can find out more about the work of the Auditor General on our website: www.audit-scotland.gov.uk/about/ags

Audit Scotland is a statutory body set up in April 2000 under the Public Finance and Accountability (Scotland) Act 2000. We help the Auditor General for Scotland and the Accounts Commission check that organisations spending public money use it properly, efficiently and effectively. Page 254 Appendix 8 Superfast broadband for Scotland | 3

Contents

Key facts 4

Summary 5

Part 1. Developing a superfast broadband network 12

Part 2. Progress in delivering superfast broadband in Scotland 29

Endnotes 41

Appendix 1. Audit methodology 42

Appendix 2. Project advisory group 44

Appendix 3. HIE and Scottish Government contracts – summary details 45

Cover image The map shows the broadband network across Scotland. Black lines show the existing network; blue and red show the network being built.

Exhibit data When viewing this report online, you can access background data by clicking on the graph icon. The data file will open in a new window.

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Key facts

In 2013, premises with access to superfast broadband, at average speeds of 15.8 Mb/s

52 per cent Amount paid to BT, by Decemb er 2014, for Around Expected cost of work completed under £40.5 building a superfast million £412 broadband network the contracts up to million September 2014 in Scotland

By December Total number 2014, number of premises of premises expected to given access to 209,600 benefit from the broadband 746,000 premises public sector network as part contracts with of the contracts BT by 2017 with BT

Expected percentage of premises in Scotland, 95 including commercial per cent coverage, that will have access to the superfast 77 broadband network in 2017 per cent

Minimum expected percentage of premises in BT contract areas that will get superfast speeds of more than 24 Mb/s, when work is complete

Note: Megabits per second (Mb/s) refers to the amount of information transferred through the broadband connection in a second. This is sometimes referred to as the download or upload speed.

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Summary

Key messages 1 The Scottish Government’s ambition is to develop a superfast broadband infrastructure network with the capacity to deliver speeds of 40–80 Mb/s to 85–90 per cent of premises in Scotland by March 2016, and to extend this to over 95 per cent by the end of 2017. British Telecommunications plc (BT) is responsible for installing the infrastructure through two contracts (the Highlands and islands contract and the rest of Scotland contract). The contracts do not guarantee speeds of 40–80 Mb/s to all users, and about a quarter of premises may need to rely on further technological advances or new investment to get speeds of more than 24 Mb/s. Because detailed roll- out plans are reliant on the completion of survey work, the Scottish Government and Highlands and Islands Enterprise (HIE) cannot yet state with certainty what broadband speeds they expect their contracts with BT to ultimately deliver. the Scottish 2 The combined cost of building and maintaining the network as set public sector out in the contracts with BT is £412 million, with the Scottish public is spending sector contributing £165 million of this. BT was the only final bidder for each contract. The two project teams used a variety of approaches £165 million to obtain assurance that BT’s bids offered value for money, such to develop as benchmarking with other UK broadband projects. According to benchmarking, the rest of Scotland contract costs are in line with a superfast those of other UK broadband projects, while costs in the Highlands broadband and islands are higher. It is difficult to conclude whether the Scottish contracts represent value for money because BT is also the sole network in contractor for all other UK broadband projects. Scotland 3 Based on progress to December 2014, and assuming that BT delivers only its contractual targets from December 2014 to March 2016, we calculate that the Scottish Government will achieve its interim target to provide access to 85 per cent of premises across Scotland by March 2016. So far, BT has exceeded its contractual targets to provide access to the broadband network by 57,000 premises, although it is about 14,000 premises short of where it expected to be against its original implementation plans. 4 Arrangements for scrutinising BT’s progress against the contracts are good. The procedures are complex, which increases the risk that, as workloads increase in the future, project teams may not be able to manage in busier periods. The Scottish Government and HIE have still to fully develop plans to measure the wider benefits of their broadband investment. Page 257 6 | Appendix 8

Key recommendations

The Scottish Government should:

• improve ways of reporting the range of speeds its investment will deliver and, in particular, seek to report publicly what its contracts with BT for superfast broadband are expected to deliver in terms of coverage and speed, by each of: – the interim target date (March 2016) – December 2016 and December 2017 (when the Highlands and islands and rest of Scotland contracts are due to complete) – December 2020 (the date when the Scottish Government expects superfast broadband to be universally available).

The Scottish Government and HIE should:

• encourage take-up of superfast broadband to maximise the benefits of their investments and identify what further work is needed to realise these benefits

• develop clear plans, by June 2015, for the planned investment of a further £42 million in superfast broadband, announced by the UK and Scottish Governments in February 2014. These plans should strike an appropriate balance between extending coverage in areas where there is no access to superfast broadband, and increasing speeds in premises with low speeds. The plans should also: – take account of the costs and value of extending coverage to the 132,000 premises in the most remote parts of Scotland that will either not be covered by the current superfast broadband contract arrangements or where BT is unable to say if they will be included – consider the costs and value of improving speeds to those premises not expected to get maximum speeds of more than 24 Mb/s – assess the technological challenges associated with both increasing speeds and extending coverage, and how these might be overcome – use the above information to set clear priorities and a timetable for further investment in superfast broadband – include an assessment of how the existing investment can best be used to help contribute towards meeting the EU aspiration of 50 per cent uptake of ultrafast broadband (speeds faster than 100 Mb/s) by households in Europe – identify communities excluded from the current BT contracts, so that these communities can make an informed choice to consider other options.

• review work programmes and payment profiles and make any changes necessary to ensure that payment is closely linked to successfully achieving the agreed targets

Page 258 Appendix 8 Summary | 7

• keep staffing levels and workloads under review and alter the skills mix and number of staff when needed, to ensure that project teams are able to fulfil their contract management and monitoring roles well

• further develop their performance measurement frameworks, by including measures that address speeds delivered, the unit cost of providing access to superfast broadband to each premise and levels of take-up, as well as measures that allow benchmarking with other countries’ implementation of superfast broadband. Both bodies should report publicly on these measures each year.

Introduction

1. The Internet is now regarded as an everyday necessity. It enables businesses to develop and compete internationally. It helps people to learn and improve their skills, and provides access to online services so that, for example, they can pay their council tax or register to vote. The Internet can also help reach and widen opportunities for people unable to access services and information in other ways, because of where they live or because they face other barriers, such as being in poor health. Broadband is the means by which people access everyday Internet services. Unlike earlier generation dial-up connection services, broadband is high speed and always-on.

2. In June 2013, Ofcom reported that 52 per cent of premises in Scotland had access to superfast broadband. While access to superfast broadband in Scotland is growing – in 2012, the equivalent figure was 45 per cent – it is behind many other parts of the UK. Overall, across the UK, 73 per cent of premises were in areas with access to superfast broadband in 2013. Comparative figures for the other countries of the United Kingdom in 2013 were:

• 95 per cent access to superfast broadband in Northern Ireland

• 76 per cent access to superfast broadband in England

• 48 per cent access to superfast broadband in Wales.1

3. There is no agreed definition of what speed is ‘superfast’, although the Scottish Government’s aim is to ultimately provide speeds of 40–80 Mb/s. In comparison, the UK Government’s rural broadband programme now aims to provide access to Internet speeds of more than 24 Mb/s to 95 per cent of premises by 2017. The European Commission’s ambition is for all member states to provide access to speeds in excess of 30 Mb/s by 2020, with 50 per cent of European households subscribing to ultrafast speeds of more than 100 Mb/s. Other countries are more ambitious: Germany aims to provide speeds of 50 Mb/s to all households by 2018, while Sweden aims to provide access to speeds of 100 Mb/s to 40 per cent of premises by 2015, and 90 per cent by 2020. 2

Creating a superfast broadband network in Scotland

4. The Scottish Government set out its aim, in January 2012, to establish a network making broadband speeds of 40–80 Mb/s available to 85–90 per cent of premises across Scotland by 2015, and universally available by 2020. The Scottish Government considered that a range of factors would affect the actual speed received at individual Page 259 8 | Appendix 8

premises, and outlined that the 40–80 Mb/s target was intended to signal the extent of the change required, rather than being regarded as a precise measure. 3

5. The policy intent of the broadband programme is to address the digital divide by providing more even access to superfast broadband across Scotland. The Scottish Government intends to use public money to bridge the gap between what commercial operators will provide and its policy ambitions. For example, HIE has estimated that, without public sector intervention, only 21 per cent of premises in the Highlands and islands could expect to receive access to a broadband network. Some council areas in the Highlands and islands would not have access to superfast broadband at all.

6. In May 2012, the Scottish Government restated its objective, outlining that the network built would have the ‘capacity to deliver’ speeds of at least 40 Mb/s to 85–90 per cent of premises by 2015. 4 In practice, this means that the network BT is building across Scotland will not provide superfast speeds to all premises. It will provide a backbone which BT, the Scottish Government and HIE believe can be upgraded later, to provide speeds of at least 40 Mb/s. The Scottish Government and HIE expect that the network they are currently building will:

• provide speeds of more than 40 Mb/s to some premises

• improve the broadband speeds that other premises get, although they will not get speeds as fast as 40 Mb/s

• provide broadband, albeit at low speeds in some instances, to premises that do not currently have broadband at all.

In this report we refer to the network that BT is building as a ‘superfast broadband network’ to distinguish it from the network that was previously available.

7. In 2013 the Scottish Government and HIE separately appointed BT to build the superfast broadband network across Scotland at a cost of £412 million, to cover the cost of building, operating and maintaining the network over an 11-year period. The public sector is providing £286 million (69 per cent) of the funding. The Scottish public sector will provide £165 million (40 per cent), with other contributors being the UK Government, through Broadband Delivery UK (BDUK), the European Union (EU) and BT.

8. Although the public sector is mainly funding the broadband infrastructure being built, BT will ultimately own the network and will be responsible for maintaining it beyond the end of the contracts. BT will generate income from its investment in Scotland by selling access to Internet service providers so that they can offer superfast broadband to households in Scotland. 5

9. The Scottish Government has a number of other projects in place to help expand broadband coverage beyond what BT is expected to deliver. However, it does not yet have detailed plans to achieve its vision of universal availability by 2020. Key steps taken so far include:

• Establishing Community Broadband Scotland (CBS) to manage a £6.2 million start-up fund to bring broadband to remote communities. This will require CBS to target its funding at those communities that are not included in BT’s work.

Page 260 Appendix 8 Summary | 9

• Earmarking at least £42 million of additional investment to extend coverage of the superfast broadband infrastructure in Scotland and/or boost speeds. The Scottish Government, BDUK and HIE are still discussing how the additional funding will be used.

• Asking the Scottish Futures Trust (SFT) to help develop a plan to achieve a world-class 2020 digital infrastructure. SFT will look at the requirements of a world-class infrastructure and possible funding approaches.

• Setting up a number of other programmes such as support for the Business Excellence Partnership, to develop programmes that help businesses to adopt digital technology; introducing a skills investment plan for the digital/ICT sector; and funding the Scottish Council for Voluntary Organisations' (SCVO) work to support its efforts to get people online.

How superfast broadband reaches users

10. Devices such as computers and mobile phones send and receive information through channels within the Internet connection. Broadband speeds depend on the type of connection to the Internet and the number of channels used to connect to the Internet. The more channels the connection has, the faster information is transferred. Fibre optic cables provide the fastest Internet connections but laying new cables is more expensive than reusing existing copper wiring to link to the Internet. Fibre also gives better speeds than copper as it does not slow down over long distances, or as more people use the service.

11. BT’s contracts suggest it will use a combination of fibre optic cables, existing copper wiring and, to a lesser extent, satellite to establish the broadband network. BT cannot say definitively how much of the network will be built using each technology, as it is aiming to balance coverage and speed and will determine this through ongoing survey work. Both contracts work on the principle of installing a fibre network where possible:

• A large proportion of the network BT is building for the Scottish Government and HIE will use fibre cables that link exchanges to a network of existing and new locations (known as cabinets) that are close to homes and businesses. Existing copper wires then provide the final connection to premises. This is known as fibre to the cabinet (FTTC).

• A smaller proportion of premises will receive fibre all the way, known as fibre to the premise (FTTP). FTTP is generally used in less densely populated areas where it is not cost effective to build a cabinet.

• BT is trialling fibre to the remote node (FTTRN) in England. This involves attaching small electronic boxes to existing overhead or underground infrastructure to help provide better coverage in remote areas. If the trials are successful, and approved for use by BDUK, then BT may use the technology to extend the network in Scotland.

• In some areas, because of the terrain and cost, it will not be possible to use either FTTC or FTTP. Depending on its affordability, BT expects to use satellite to make basic broadband (up to 2 Mb/s) available to some properties in these areas (Exhibit 1, page 10).

Page 261 10 | Appendix 8

Exhibit 1 How superfast broadband reaches users BT is replacing parts of the copper network with fibre to the premise and fibre to the cabinet. However, in very remote areas BT may need to use alternative technology (such as satellite) to provide basic broadband speeds.

Fibre Backhaul Copper network Exchange

Cabinet Cabinet

Copper Fibre to the cabinet Fibre to the Satellite network (FTTC) premise (FTTP)

2+ Mb/s Up to 24 Mb/s Up to 80 Mb/s Up to 330 Mb/s

Internet provided through Broadband provided through Fibre optic cables from the Fibre optic cable all the satellite technology for the the existing telephone exchange to cabinet and way to the premise. most remote areas, but network. Speed varies then existing copper lines not at superfast speeds. depending on technology to the home. available in cabinets.

Cheaper option for In some areas technology Some of the benefits of Very fast speeds suitable remote areas than fibre is able to provide good fibre optics but at less for multiple users and as little or no engineering speeds. Uses the existing cost. It relies on existing doing a number of things work is needed. network so limited network for connection to at once on the Internet. additional cost. the home.

Speeds reduce with Copper lines lose speed Speeds reliant on the Most expensive option multiple users and quickly with distance from distance and quality of the as it requires more poor weather. Satellite the exchange, long lines copper connection. engineering work to connections have a delay are significantly slower than lay cables. which causes problems 24 Mb/s. The number of for gaming and Skype. people online, poor weather and the condition of the copper all reduce speeds.

Note: In some instances pre-existing local exchanges will not be used. Instead FTTC and FTTP will connect to the network through handover points. Source: Audit Scotland

Page 262 Appendix 8 Summary | 11

12. In the Highlands and islands, BT needs to first create a ‘backhaul network’ to bring broadband from the core out to exchanges and other handover points across the area. This involves laying 20 subsea cables and 800 km of land cables across the Highlands and islands. Commercial providers have already built most of the backhaul network that covers the rest of Scotland. The need to build a significant backhaul network is a unique feature of HIE’s contract with BT. Our report cover shows the existing and new backhaul network.

About the audit

13. This audit assesses whether the Scottish Government and HIE have clear plans and arrangements in place to build their superfast broadband network in Scotland. It looks at:

• the targets, aims and objectives of the Scottish Government’s investment programme in superfast broadband

• the procurement and subsequent contract management of the two projects (in the Highlands and islands and the rest of Scotland)

• what has been delivered to date and what else is needed to realise the Scottish Government’s world-class vision by 2020.

14. During our audit we:

• reviewed documents such as Scottish Government strategies, project business cases, tender evaluations, implementation plans and relevant progress reports and papers

• interviewed representatives from the project teams in the Scottish Government and HIE, and other stakeholders such as BT

• interviewed representatives from partner organisations and interest groups such as councils, the Convention of Scottish Local Authorities (COSLA), BDUK, SFT, the Carnegie UK Trust and the SCVO

• liaised throughout the project with other stakeholders including Ofcom, the Wales Audit Office and the National Audit Office, and used benchmarking data from their work where appropriate

• a detailed methodology is in Appendix 1 . Appendix 2 lists members of our project advisory group, who gave advice and feedback at important stages of the audit.

15. This report has two parts:

• Part 1 looks at the development of the superfast broadband network in Scotland.

• Part 2 examines the progress made in delivering superfast broadband in Scotland.

Page 263 12 | Appendix 8

Part 1 Developing a superfast broadband network

Key messages 1 The Scottish Government set out a timetable to make superfast broadband available across all of Scotland by 2020. It set interim targets to provide an infrastructure that ultimately could provide superfast broadband (at speeds of 40–80 Mb/s) to 85–90 per cent of premises by March 2016. 2 The Scottish Government and HIE appointed BT using two separate contracts to develop the infrastructure that people need to get superfast broadband. When the work is complete in December 2017, the Scottish Government and HIE expect that at least 95 per cent (2.5 million) of premises in Scotland will be covered by the superfast broadband network. This includes at least 746,000 premises covered by the BT contracts, as well as 1.73 million premises covered by commercial providers. three- 3 The contracts with BT do not guarantee that all premises will get quarters of target speeds of 40–80 Mb/s. About three-quarters of the premises premises will in the areas covered by the contracts can expect to receive access to maximum speeds of more than 24 Mb/s. The remaining 23 per cent get access to of premises may need to rely on technological advances or further broadband investment before being able to get superfast broadband speeds. Because detailed roll-out plans are reliant on the completion of survey speeds of work, the Scottish Government and HIE cannot yet state with certainty 40–80 Mb/s what broadband speeds the contracts with BT will ultimately deliver. through the 4 The total cost of the work associated with the contracts is £412 million, contracts including the Scottish public sector’s spend of £165 million and BT’s ongoing operating and maintenance costs. The Scottish public sector with BT is contributing 40 per cent of total costs. Final total spend will not be known until 2025. 5 BT was the only final bidder in each area. Project teams used a variety of approaches to obtain assurance that BT’s bids offered value for money, such as benchmarking with other UK broadband projects. According to benchmarking, the rest of Scotland contract costs are in line with those of other UK broadband projects, while costs in the Highlands and islands are higher. Because BT is the sole contractor for the other UK broadband projects, it is difficult to conclude from this whether the Scottish contracts represent value for money.

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The Scottish Government set out a timetable to deliver superfast broadband in Scotland by 2020 but it is not clear what speeds will be delivered

16. In 2009, HIE started planning to introduce superfast broadband across the Highlands and islands, when it first sought consultants’ advice on the costs and benefits of establishing a network that would extend coverage beyond the 21 per cent of premises that commercial operators were expected to provide. A year later, the Scottish Government published Digital ambition for Scotland setting out its timetable for introducing superfast broadband across Scotland. This was followed, in March 2011, by the Scottish Government’s digital strategy, to create what it has termed a world-class digital Scotland. 6 The vision is to offer connectivity anywhere, anytime and through any device, in a country where people and businesses are able to make the most of this connectivity. The strategy set out four programmes to build a world-class digital Scotland. These were to:

• deliver digital public services, by finding new and improved ways for people to do things online

• promote a digital economy, by providing skills and helping business to adopt digital technology

• encourage digital participation, by making broadband affordable and encouraging and helping people to use it

• build digital connectivity: that is, ensuring the infrastructure is in place to enable people to go online anytime, anywhere, using any device.

17. The Scottish Government outlined how it would deliver the fourth programme, to build digital connectivity, in its digital infrastructure action plan, published in January 2012. 7 The action plan set three specific milestones for the programme:

• to deliver a world-class, future-proofed digital infrastructure across the whole of Scotland by 2020

• to make superfast broadband (at speeds of 40–80 Mb/s) available to 85–90 per cent of premises by 2015

• to extend the reach further and deliver the best possible speeds for those where delivery of 40–80 Mb/s is not possible.

18. In May 2012, the Scottish Government published its digital infrastructure procurement plan. 8 This provided an update on progress in creating a superfast broadband network in the Highlands and islands, and set out how the Scottish Government would identify a supplier for the rest of Scotland area. The plan restated the Scottish Government’s position on what broadband speeds it expected from the new network, by recognising that not all premises in Scotland will immediately be able to receive speeds of 40–80 Mb/s when the superfast network is installed. The procurement plan stated that:

'The core requirement of this procurement is to invest in infrastructure that will have the capacity to deliver speeds of 40–80 Mb/s for between 85–90 per cent of premises, with a significant uplift in speeds for those where delivery of 40–80 Mb/s is not possible at this stage, including those areas where there is currently no level of service.' Page 265 14 | Appendix 8

19. Because there is likely to be a variation in the speeds that individual premises receive, the Scottish Government has not detailed what speeds it expects the BT contracts to deliver. For example in a statement to the Scottish Parliament’s Infrastructure and Investment Committee in June 2013, when the rest of Scotland contract was still to be signed, the then Cabinet Secretary for Infrastructure, Investment and Cities said ‘the ambition…. is to give 85–90 per cent of households across Scotland speeds of between 40–80 Mb/s’. In the June 2014 briefing to the committee, the then Cabinet Secretary stated ‘We remain focused on achieving our target of 85 per cent of premises with access to fibre broadband by 2015-16 and 95 per cent by 2017-18’ without referring to what speeds might be delivered.

20. The June 2014 statement is the first public reference to the financial year as the target date for achieving the Scottish Government’s aim. Previous public documents and the Scottish Government’s Digital Scotland website refer to 2015, implying the interim target date is December 2015. The Scottish Government’s contract with BT is phased to achieve the interim target in March 2016. Because of this, Part 2 of this report measures progress against the interim target using this date.

The Scottish Government and HIE have separate contracts with BT to build the superfast broadband infrastructure

21. There are two contracts in place to build the superfast broadband infrastructure:

• HIE signed the Highlands and islands contract with BT in March 2013. Geographically, the contract covers the three island councils (Orkney and Shetland Island Councils and Comhairle nan Eilean Siar), Highland and Moray Councils, and parts of North Ayrshire and Argyll and Bute. HIE expects to complete the work to install its superfast broadband network over four years, by December 2016.

• The Scottish Government signed the rest of Scotland contract with BT in July 2013. Work under this contract is due to finish in just under five years, by December 2017, and covers the remaining council areas.

22. Two separate contracts were developed because HIE had already started work to introduce superfast broadband in the Highlands and islands before the Scottish Government published its Digital ambition for Scotland . As a result, in December 2012, when the Scottish Government started its procurement process for a superfast broadband infrastructure in the rest of Scotland, HIE was already close to signing its contract with BT.

23. The Scottish Government worked with councils to agree a single contract for the rest of Scotland area because it considered this approach would benefit from lower costs due to economies of scale. It considered establishing a single contract for the whole of Scotland but decided against this because:

• HIE was at an advanced stage in its procurement discussions, so negotiating a single contract could have delayed completion of both projects

• both projects are already large and complex with different challenges, so an even larger project might have proven unmanageable.

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24. There are significant differences between the two contracts. For example, they have different start and end dates, and the two bodies have different arrangements for marketing the advantages of superfast broadband once the work is complete. We highlight other differences throughout the report and summarise them in Appendix 3 .

25. Both contracts contain two sets of targets, which we refer to as the ‘contractual target’ and the ‘implementation plan target':

• The contractual target is the minimum number of premises that BT must provide with access to the superfast broadband network each quarter to be paid for the work it does.

• The implementation plan target represents BT’s assessment of what it aims to deliver each quarter.

26. The number of premises that BT is expected to provide with access to superfast broadband each quarter under the implementation plan is greater than the contractual target because it includes a ‘buffer’ of premises that do not count towards the contractual target. For example, BT may provide superfast broadband access to some premises classified as urban as part of its work to reach nearby rural premises. Because of state aid rules (paragraph 29) , BT cannot count these urban premises towards its contractual target, and the public sector will not pay for this type of work.

27. For Scotland as a whole, the contractual targets require BT to provide access to about 84 per cent of premises by March 2016. Coverage will be higher in the rest of Scotland area than the Highlands and islands:

• The contractual targets for the rest of Scotland require BT to provide access to the broadband network to about 355,000 premises by March 2016. Once commercial provision is included, this equates to 86 per cent of premises in the rest of Scotland area.

• In the Highlands and islands, the contractual targets require BT to provide access to about 109,000 premises by March 2016. Once commercial provision is included, this equates to 65 per cent of premises respectively.

The Scottish public sector will contribute £165 million towards the likely total contract cost of about £412 million

28. The two contracts have a combined value of about £412 million over the 11-year period from 2013 to 2025. The Scottish public sector, the EU and UK Government will spend £286 million on building the network over the first five years of the contract. BT is investing £126 million over the lifetime of the contracts. This comprises £47 million of capital costs in the first five years and £79 million for the operation and maintenance costs associated with the network for an 11-year period. At least £146 million is expected to be invested in the Highlands and islands (35 per cent), and about £266 million (65 per cent) in the rest of Scotland (Exhibit 2, page 16). The final amount to be invested in each area will not be known until 2024 in the Highlands and islands and 2025 in the rest of Scotland, as there are clauses in the contracts designed to promote take- up and generate additional funds for reinvestment (paragraph 42) .

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Exhibit 2 Funding of superfast broadband in Scotland by source and project The Scottish public sector is contributing £165 million over a five-year build period towards total contract costs of about £412 million.

Rest of Scotland Scottish Government £21.5m Collective council contributions 8% £17.1m 6% BT £106.7m Individual 40% council £266 19% contributions million £50.7m

8% 19%

European UK Union Government £20.5m £50m

Highlands and islands

BT £19.4m Scottish Government 13% £41.3m 28% £146 UK Government 35% £50.8m million 16% 8% Collective council contributions HIE £22.9m £11.4m

Note: Figures include a £16 million innovation fund and £2.2 million allocated for 'demand stimulation' work to encourage people to make use of broadband in the rest of Scotland contract. The Scottish Government has not formally apportioned the collective council contributions and its own funding across the two projects. Source: Scottish Government and Highland and Islands Enterprise

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29. The public sector’s financial contribution to the superfast broadband projects has to comply with EU regulations governing the provision of state aid. These effectively allow member states to intervene in the free market only where there is an economic necessity. In practice, the rules typically limit public sector investment in superfast broadband to rural areas where the private sector had no plans to install broadband before 2015.

The total Scottish public sector contribution is expected to be £165 million 30. The Scottish Government is the largest single Scottish public sector contributor to the new superfast broadband network. It plans to contribute £21.5 million to the rest of Scotland contract and £41.3 million to the Highlands and islands. HIE will also provide £11.4 million to the Highlands and islands contract. The Scottish Government’s funding for the rest of Scotland includes £2.2 million for BT to market the benefits of superfast broadband and stimulate demand for it. HIE will undertake demand stimulation work in its own area by linking this with other development activities. By promoting broadband as it becomes available, this is expected to result in an income flow that the Scottish Government and HIE can use to reinvest in the network (paragraph 42) .

31. The rest of Scotland contract includes a £13.5 million ‘innovation’ fund. to be used as deployment progresses and survey work confirms the best approach. The Scottish Government may use this money as a contingency if expected EU funding is not realised in full (paragraphs 35–38). If not required for this purpose, the Scottish Government and BT plan to use the money to improve coverage or speeds in the rest of Scotland area. The Highlands and islands contract also includes an innovation fund of £2.5 million which aims, subject to state aid requirements, to extend broadband coverage.

32. As a result of UK government spend in councils in England, it announced, in February 2012, that Scottish councils would receive additional funding of £40 million through the Barnett funding mechanism. 9 The Scottish Government agreed with COSLA to keep this money centrally and invest it collectively in the superfast broadband network, rather than distribute it to individual Scottish councils. The Scottish Government expects that £17.1 million of this funding will be invested in the rest of Scotland, and £22.9 million in the Highlands and islands. COSLA asked the Scottish Government to ensure that the additional funding would provide at least 75 per cent of premises in each council area with access to superfast broadband.

33. In addition, 14 of the 27 councils in the rest of Scotland are also investing a total of £50.7 million to bring superfast broadband to more premises in their Additional areas. Individual councils made this investment where it was in line with their contribution local economic development plans. Each council agreed to a reduction in the by council Scottish Government grants it will receive over the next two or three financial years, to pay for the additional broadband coverage.

34. In return for their financial contributions, some councils specified priority areas, such as industrial estates, to receive broadband access. The agreements between the Scottish Government and each council did not specify either an absolute level of coverage, or what broadband speeds will be provided through this additional council funding because BT did not know what was possible at the time. The Scottish Government kept councils informed of likely coverage in their areas as more information became available during the procurement and contracting phases.

Page 269 18 | Appendix 8

The Scottish Government applied for £20.5 million of European Regional Development Funding but will not claim this in full 35. The Scottish Government planned originally to use £20.5 million funding from the European Regional Development Fund (ERDF) for the rest of Scotland project. Although the EU is still to formally approve the Scottish Government’s application, it has indicated that any funding it provides:

• must be spent on work completed before December 2015

• can be claimed only where it has been used to connect small and medium- sized enterprises in remote, rural areas. 10

36. The Scottish Government was aware, when developing its plans for the rest of Scotland, that the EU’s conditions for using ERDF funding brought risks, in that:

• it may increase the project’s total costs, by requiring BT to prioritise early work in more remote areas

• any delay in BT completing sufficient work in ERDF-eligible areas could mean that the Scottish Government would be unable to claim all of the funding. Any shortfall would need to be financed from other sources.

37. The Scottish Government attempted to find out how much its costs might increase if it used ERDF funding during the pre-tender negotiations, by asking potential suppliers to model costs for options which both included and excluded it. Suppliers indicated that this would add significantly to the time taken to submit their bids. As a result, the Scottish Government decided to proceed and apply for ERDF funding in the expectation that the benefits would outweigh the costs. It now expects to claim £13 million ERDF funding for work completed by the end of 2015, based on a better understanding of what level of funding from the ERDF would apply.

38. HIE decided not to apply for ERDF funding for superfast broadband due to the restrictions on its use, and because it considered that the expected funding, of £5 million, was unlikely to affect significantly the broadband coverage and speeds achievable.

The UK Government is expected to contribute £101 million 39. The UK Government established its programme to bring superfast broadband to rural areas across the UK in December 2010. It set up BDUK within the Department of Culture, Media and Sport to manage the programme and provide funding to local bodies to develop a superfast broadband infrastructure. BDUK is providing £101 million to Scotland for this purpose, split broadly equally across the rest of Scotland and Highlands and islands projects.

40. BDUK is also providing a range of support and advice to public bodies across the UK which are procuring superfast broadband, including the Scottish Government and HIE. For example, it has established a framework agreement, including standard contract conditions, to speed up the procurement process by identifying and assessing the suitability of companies interested in tendering for the work. BDUK helps public bodies assess the competitiveness of the tenders they have received, reviews projects and advises on the use of contract monitoring processes once infrastructure installation starts. BDUK also ensures that projects meet state aid requirements.

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BT is expected to contribute £126 million for work covered by the contracts 41. Overall, BT expects to spend about £126 million on superfast broadband in Scotland over the next 11 years, not including any wider commercial investment. This means that the public sector will pay about 60 per cent of the total cost of the rest of Scotland project and 87 per cent of the Highlands and islands project. This is broken down into the cost of building the network and the cost of maintaining it. Over the five-year construction period, BT will contribute £47 million to the construction cost; £43 million in the rest of Scotland area and £4 million in the Highlands and islands. BT will continue to spend money after the contracts end, to make final connections to premises and for ongoing operating and maintenance costs.

The final amount to be invested will not be known until 2025 42. The final amount to be invested in the Highlands and islands will not be known until 2024, and until 2025 for the rest of Scotland. This is because both contracts have clauses that are expected to produce additional funds for reinvestment. In particular:

• If BT’s costs to install the superfast broadband network are lower than expected, BT must reinvest the savings in the projects.

• As part of the negotiations over the Highlands and islands contract, BT asked for an advance payment of £20 million. The Scottish Government gave HIE permission to make this payment. It is banked in a separate account, which BT can draw down with HIE’s agreement, in line with work completed. The interest earned (£605,000 by December 2014) on the advance payment will be invested in the Highlands and islands project.

• In each contract area, if more than 20 per cent of premises connect to the network, the Scottish Government and HIE will receive – or claw back – a share of the additional income generated for reinvestment. The amount of claw-back takes into account how much BT invests and its expected profit margins. Similarly, the Scottish Government, HIE and BT will share equally the income generated from sales of additional services that BT was unable to offer before the network was in place, such as Ethernet business services. The Scottish Government and HIE will reinvest any money accumulated from these sources during the seven years after the contracts end.

Not all premises will get broadband speeds of 40–80 Mb/s

The maximum broadband speeds that premises receive will vary 43. Although the Scottish Government’s ambition is to develop a network that can deliver broadband speeds of 40–80 Mb/s, it acknowledges that not everyone will be able to receive these without further investment or technical advances. In practice, the broadband speed received will vary depending on:

• the distance between the premise and the cabinet

• the quality of the copper wiring to premises

• the Internet package bought from the Internet service provider

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• where copper wiring is used, the number of people connecting to the Internet at any one time

• the internal wiring of properties.

44. To illustrate the likely impact of this, we have plotted the download speeds that BT expects to deliver to premises in a Scottish town, based on work it has completed to date to bring superfast broadband to the area for the first time (Exhibit 3) . BT has yet to complete work in this town, so our analysis is indicative and can be expected to change as BT undertakes further work in the area.

Exhibit 3 Maximum expected superfast broadband speeds for upgraded postcodes in a selected Scottish town BT is still to complete the installation of superfast broadband in the town but, so far, it expects that properties in most postcode areas will be able to receive maximum speeds above 40 Mb/s. Some premises are likely to receive lower maximum speeds.

Source: Audit Scotland

45. Our analysis uses average maximum speeds across a postcode area. Speeds may be lower in practice if, for example, several users connect to the Internet at the same time. Of the 5,000 premises in this town provided with access to superfast broadband for the first time:

• 4,000 (80 per cent) are in postcode areas where the average maximum speeds for premises in the area will be more than 40 Mb/s (the speed that the Scottish Government aims to provide)

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• 1,000 (20 per cent) will get speeds of less than 40 Mb/s, of which 650 (13 per cent) are in postcode areas where the maximum speed received for premises will, on average, be less than 24 Mb/s (the UK Government’s target for superfast broadband).

About three-quarters of premises are expected to receive maximum speeds of more than 24 Mb/s 46. When the contracts were signed, the Scottish Government did not require BT to commit to providing access to speeds of 40-80 Mb/s at 85-90 per cent of premises because it was concerned it would cost too much. In the contracts, BT commits to building an infrastructure that should provide modelled broadband speeds of more than 24 Mb/s (the UK target) to at least 77 per cent of premises across both contract areas.

47. Of the other 23 per cent of premises covered in the contracts:

• at present some will not be reached by the network at all

• some will get access to broadband services but at speeds of less than 24 Mb/s

• in some instances, BT is not able to predict what speeds it will provide until survey work is completed (Exhibit 4) .

Opportunities will arise as the network is planned and built over time to achieve improvements in speeds and coverage for the remaining 23 per cent.

Exhibit 4 Superfast broadband maximum speed expectations In the contracts BT commits to building an infrastructure that should provide broadband speeds of more than 24Mb/s (the UK target) to at least 77 per cent of premises across both contract areas.

24-30 Mb/s >30 Mb/s 22%

Unspecified or <24 Mb/s 23% 55%

Note: We are unable to report what percentage of premises is expected to receive speeds in excess of 40 Mb/s, as this is not stipulated in the contract for the rest of Scotland area. BT is aiming to cover as much of Scotland as possible with the broadband network and provide the highest speeds possible within the funding available. Source: Speed coverage templates in both contracts

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48. BT is aiming to cover as much of Scotland as possible with the broadband network and provide the highest speeds possible within the funding available. Much of the roll-out of superfast broadband across Scotland involves the installation of new infrastructure, such as cabinets and fibre cabling, the location of which is only finalised once detailed survey work is undertaken. Because of this, the Scottish Government and HIE report that it is difficult to state with certainty the speeds that will be provided to individual areas or premises, until work is completed.

By December 2017, about 95 per cent of premises will be in areas with access to a superfast broadband network

49. The Scottish Government aim is to provide a superfast broadband network across as much of Scotland as possible, although it cannot guarantee what speed individual premises will get. A high proportion of premises in certain areas, such as Dundee and Edinburgh, already have access to superfast broadband from commercial providers. The main beneficiaries of the public sector’s investment are, therefore, rural areas where access to commercially provided superfast broadband is low or non-existent.

50. The work BT is completing as part of the rest of Scotland contract is the main means by which the Scottish Government hopes to achieve its coverage target of at least 95 per cent across Scotland by December 2017. The Highlands and islands contract is not designed to provide the level of coverage set out in the Scottish Government’s ambitions for Scotland as a whole. HIE’s strategy is to improve coverage across the Highlands and islands to achieve, as far as possible, an equitable minimum level of coverage in each council area.

51. Our calculations show that overall, if BT meets the contractual targets, it will make broadband available to at least 746,000 more premises across Scotland. In addition to commercial provision to 1.73 million premises, this means that 95 per cent of premises in Scotland will have access to the broadband network. By December 2017, coverage will be higher in the rest of Scotland than in the Highlands and islands area:

• In the rest of Scotland, at least 96 per cent of premises will have access to the broadband network (71 per cent – 1.68 million premises – from commercial coverage and 25 per cent – 595,000 premises – through the rest of Scotland contract).

• In the Highlands and islands, at least 82 per cent of premises will have access to the broadband network (21 per cent – 51,000 premises – from commercial coverage and 61 per cent – 151,000 premises – through the Highlands and islands contract).

• At least 75 per cent of premises in 31 of the 32 councils will have access to the superfast broadband network. The exception is Comhairle nan Eilean Siar where 70 per cent of premises are expected to get access (Exhibit 5, page 23).

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Exhibit 5 Percentage of premises expected to have access to superfast broadband by December 2017 by council area Given current technology and levels of investment, the Western Isles is the only council area that is not expected to achieve 75 per cent coverage due to its remoteness and terrain.

Rest of Scotland Highlands and islands 100 90 80 70 60 50 40 Percentage 30 20 10 0

Fife

Falkirk Angus Moray Stirling Orkney Highland Shetland Midlothian Inverclyde Dundee City East Lothian West Lothian East Ayrshire Glasgow City Renfrewshire North Ayrshire Aberdeen City Aberdeenshire South Ayrshire Argyll and Bute Argyll and Bute City of Edinburgh Perth and Kinross Clackmannanshire North Lanarkshire South Lanarkshire East Renfrewshire East Dunbartonshire Arran and Cumbrae West Dunbartonshire The Scottish Borders Dumfries and Galloway Comhairle nan Eilean Siar

Funded commercially Funded through Highlands Funded directly by council 75% coverage and islands and Scottish Government contracts

Note: Two council areas cross the boundary between the HIE and Scottish Government contracts. Argyll and Bute is split across both contracts. Arran and Cumbrae falls within the area covered by the HIE contract area, while the rest of the North Ayrshire Council geographic area falls within the Scottish Government contract area. Source: Rest of Scotland contract award recommendation report and HIE board papers

52. The contractual targets represent the minimum number of premises in both areas that BT is expected to provide with access to the broadband network. Both the Scottish Government and HIE expect BT to exceed these targets. For example, the implementation plan for the Highlands and islands shows that 156,000 premises will be connected to the broadband network. If the implementation plan target is achieved, it means that the proportion of premises in the Highlands and islands with access to the broadband network will have increased from 21 per cent to 84 per cent.

53. The level of coverage could also increase beyond the minimum levels set out in the contracts through the use of the innovation funds, and depending on how BT proceeds and if new technology becomes available. BT, in consultation with HIE and the Scottish Government, decides how it will proceed in each geographic area based on survey work, carried out on a rolling basis. This may mean that more premises will get access to superfast broadband than originally thought. Project teams and BT could also decide not to provide superfast broadband in certain areas or to postpone installation of the necessary infrastructure to later in the programme. Because the survey work is ongoing, the Scottish Government

Page 275 24 | Appendix 8

and HIE do not know with certainty who will get what and when, until BT submits a quarterly report on the survey work completed. Work will then start soon after in the areas where BT will proceed next.

54. We calculate that about 132,000 premises (86,800 in the rest of Scotland area and 45,300 in the Highlands and islands) will not get superfast broadband at all under the contracts or will only get it if the survey work identifies a way of providing access to the broadband network ( www.digitalscotland.org/ whereandwhen ). Reasons for this include:

• The most remote parts of Scotland will not be included if it is too expensive or physically impossible to deliver broadband using fibre optic technology. BT, HIE and the Scottish Government will decide which areas will not receive broadband once BT has completed detailed survey work.

• The rest of Scotland contract allows 21,000 remote premises to be provided with standard broadband (with speeds of at least two Mb/s) using other technology, such as copper ADSL telephone lines. 11 Because of EU state aid rules, further public money can only be used to provide broadband to these premises if it will improve broadband speeds to more than 24 Mb/s. HIE did not include similar arrangements in its contract with BT as it decided to use its budget to ensure as many premises as possible received superfast broadband speeds.

• In areas where demand for a connection to the superfast broadband network is higher than expected, BT may not be able to provide immediate access to everyone that wants it. Some people in areas of high demand will need to wait until BT decides whether to invest its own resources, either to extend capacity of existing cabinets or build an additional one.

• Twenty thousand premises in Edinburgh, Glasgow and Aberdeen will not have access to superfast broadband. This is because the commercial sector has decided not to invest in these areas, and under EU state aid rules, they cannot be included in the rest of Scotland programme. 12

BT was the sole bidder for both contracts

55. HIE and the Scottish Government followed different procurement routes to identify a contractor to undertake the installation of superfast broadband:

• HIE followed an open ‘competitive dialogue’ procurement process that complied with EU competition requirements. Under this, HIE initially invited four companies for discussions in September 2011. 13 Three submitted an outline bid, detailing how they would meet the technological challenges of delivering broadband in the area. Based on their outline solutions, HIE allowed two companies to progress to the competitive dialogue stage. One of the companies withdrew in early 2012, leaving BT as the sole bidder. 14 HIE did not have the option to use BDUK’s framework agreement for its procurement as the agreement was not in place when HIE started its procurement.

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• The Scottish Government considered different approaches to its procurement of the rest of Scotland contract. It chose to use BDUK’s framework agreement to reduce the cost and time taken, and to limit risk. The framework agreement identified BT and Fujitsu as potential suppliers. The Scottish Government began negotiations with both suppliers in December 2012, after three months of pre-tender negotiations. Fujitsu dropped out in February 2013, having concluded that its proposal would not be successful given the assessment criteria and weighting the Scottish Government’s tender evaluation team would use.

Project teams used a variety of approaches to assure themselves that BT’s bids offered value for money

56. Although BT was the only final bidder in each area, both the Scottish Government’s and HIE’s project teams worked hard to make sure that BT’s modelled costs were reasonable:

• At the project design stage, both teams employed consultants to advise on the technicalities of the projects and to offer specialist legal, financial and procurement advice. For example, the Scottish Government’s Office of the Chief Economic Adviser undertook financial modelling to identify what it would cost to reach 75, 80 and 85 per cent of premises in each Scottish council area. This provided guidance to the project teams on both the total costs of the work and the incremental costs of extending coverage in different areas. In 2012, at HIE’s request, one of the consultants, Atkins, estimated that the cost of installing fibre broadband across the Highlands and islands was likely to be £200–£300 million. The bid BT submitted in 2013 was below the range suggested.

• Consultants’ reviews of BT’s bids pointed out areas of weakness and risk, and offered advice on how to manage these risks. For example, in its review of the rest of Scotland bid, Grant Thornton commented on the lack of detail in BT’s assumptions and unit costs. It also identified actions to mitigate risks in several areas, such as how best to apportion costs between the various work activities, and how to monitor activities that will be funded from ERDF grants.

57. BDUK helped project teams to assess the reasonableness of BT’s tenders through comparison with other UK superfast broadband contracts. BDUK was able to do this because it holds information on the costs of all 43 broadband infrastructure projects in the UK. BDUK considers this information commercially sensitive so does not share detailed cost figures with individual project teams, although it is able to provide assurance to project teams that tendered costs are in line with other areas.

58. As well as the contract clauses outlined in paragraph 42 of this report, a number of other measures included in the contracts are intended to provide additional assurance on value for money. For example, there is a cap of £1,700 on how much BT can spend to connect each premise. If it is likely to cost more, BT must seek agreement from the Scottish Government and HIE and, where relevant, with each contributing council, before proceeding to connect these premises. This provides an assurance that project teams know how their money is being used and allows them to assess if the connection represents value for money.

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The rest of Scotland contract costs are in line with those of other UK projects

59. An important element of the project teams’ assurance on the value for money of BT’s bids came from benchmarking against cost information from all projects within the UK rural broadband programme. BT was the supplier in each of these projects. BDUK used information it had gathered from two sources:

• One was the financial models that BT submitted as part of its bids for superfast broadband contracts in other parts of the UK. These contain commercially sensitive information such as the unit cost of connecting a premise to a cabinet (FTTC) and bringing fibre directly to a premise (FTTP). The models also show the total contract cost for each project and give a quarterly breakdown by type of work (for example, surveying and planning).

• The other was guideline costs. These were submitted by potential contractors when they applied to BDUK to be included in the framework agreement.

60. BDUK used this information to produce expected benchmark costs for a range of works activities, and used these to compare bidders’ costs for individual broadband projects across the UK. The National Audit Office reviewed the rural broadband programme in England in 2013. Among other things, it looked at how much information BDUK had on BT’s unit costs. It concluded that it was difficult to understand unit costs from BT’s tender documents. 15 The NAO recently reported that BDUK has gathered further information on BT’s value for money. A pilot exercise carried out for Suffolk suggests that BT charged the public sector approximately 20 per cent less than the estimated cost for an alternative supplier. BDUK will do further work to establish if this applies in other locations across the UK. 16

61. The Scottish Government asked BDUK to assess the rest of Scotland bid against its benchmark costs. BDUK assessed the rest of Scotland bid against 20 other projects procured using its framework agreement; against seven open European competitive procurement projects; and against the guideline costs submitted when BT was included in the framework agreement. BDUK found that the rest of Scotland bid compared favourably against other bids, with no major risks identified. This comparison established that the contract costs charged by BT for the rest of Scotland are in line with the costs charged in other parts of the UK. We have not been able to confirm if BT could have reduced its costs across the board and offered better value for money in each of its bids.

62. BDUK could not provide assurance to HIE on the backhaul costs of its project, because there were no comparators at that time. HIE used Atkins to provide assurance over BT’s backhaul costs. BT worked out the routes it would use and their estimated distances to allow Atkins to consider whether BT’s costs were in line with expectations.

63. We compared the modelled bid costs for the Highlands and islands contract, the rest of Scotland contract and the guideline costs included in BT’s submission for inclusion in the framework agreement. We looked at the average connection cost per premise for FTTC and for FTTP:

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• In the rest of Scotland contract, the average cost per premise: – for FTTC links (which will be used for most of the network) is lower than BT’s guideline cost in the framework agreement – for FTTP links is almost double BT’s guideline cost in the framework agreement. BT aims to minimise the use of FTTP links, so these higher costs should have limited impact on total costs.

• In the Highlands and islands contract, the average cost per premise: – for FTTC links is almost double BT’s guideline cost in the framework agreement – for FTTP links is almost three times BT’s guideline cost in the framework agreement. BT aims to minimise the use of FTTP links, so these higher costs should have limited impact on total costs.

64. BT considers that the high modelled unit costs associated with both FTTC and FTTP in the Highlands and islands contract, and for FTTP in the rest of Scotland contract, are largely due to the rural characteristics of Scotland. While higher costs in rural areas are to be expected, we do not have sufficient information to conclude whether the scale of the increase in unit costs above BT’s guideline costs is justified.

65. We calculated the average total cost to the public purse of each premise provided with access to superfast broadband in Scotland. In the rest of Scotland area it is £230 and £475 per premise in the highlands and islands. However, these figures are affected by the level of investment that the public sector is making in each area; the public sector is meeting a higher proportion of total capital costs in the highlands and islands than it is in the rest of Scotland. If the public sector was contributing the same proportion of total capital costs in each area, the average public subsidy for the highlands and islands would reduce from £475 per premise to £385 per premise.

66. The Wales Audit Office (WAO) is auditing the Welsh Government's broadband infrastructure programme and expects to publish its report in Summer 2015. As part of its work, the WAO calculated that the average public subsidy for all 44 UK rural broadband projects is £240. The public subsidy in the rest of Scotland area is below this average while it is costing more in the highlands and islands.

Recommendations

The Scottish Government should:

• continue to develop ways to report the range of speeds its investment will deliver and, in particular, seek to report publicly what its contracts with BT for superfast broadband are expected to deliver in terms of both coverage and speed by each of: – the interim target date (March 2016) – December 2016 and December 2017 (when the Highlands and islands and rest of Scotland contracts are due to complete)

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– December 2020 (the date when the Scottish Government expects superfast broadband to be universally available).

The Scottish Government and HIE should:

• work together to plan how they will invest further in superfast broadband. The plans should strike an appropriate balance between extending coverage in areas where there is no access to superfast broadband and increasing speeds in premises with low speeds. The plans should also: – take account of the costs and value of extending coverage to the 132,000 premises in the most remote parts of Scotland that will either not be covered by the current superfast broadband contract arrangements or where BT is unable to say if they will be included – consider the costs and value of improving speeds to those premises not expected to get maximum speeds of more than 24 Mb/s – assess the technological challenges associated with both increasing speeds and extending coverage, and how these might be overcome – identify which communities will be excluded from the current BT contracts, so that these communities can make an informed choice to consider other options .

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Part 2 Progress in delivering superfast broadband in Scotland

Key messages 1 BT exceeded its contractual targets to provide access to the broadband network by about 57,000 premises at the end of December 2014. It has provided access to 44,000 premises more than its contractual targets in the rest of Scotland area and 13,000 premises more in the Highlands and islands. Although BT exceeded its contractual targets, it has not kept up with its implementation plan targets, meaning progress to December 2014 is slower than expected. 2 Overall, for Scotland as a whole, the contractual targets require BT to provide access to 84 per cent of premises by March 2016. This means that BT will need to exceed its contractual targets if the Scottish Government is to achieve its interim target to provide access to 85 per cent of premises. Based on the current position, even if BT delivers no more than the contractual targets over the next year, we calculate although that the Scottish Government will achieve its interim target by March 2016. Delivery of the target is heavily dependent on the rest of Scotland BT is still contract, as the Highlands and islands contract is designed to provide meeting its a lower level of access than the Scottish Government’s target for Scotland as a whole. contractual targets, 3 Arrangements for scrutinising and reviewing progress against the contracts are good, and project teams are following BDUK’s monitoring progress processes. However, systems for checking reports of work done are in the first complex and, while it is early days, there are risks that teams may not be able to manage as workloads increase. year is slower than 4 The Scottish Government and HIE have still to fully develop plans to measure the wider benefits of their broadband investment. expected

BT is meeting its contractual targets but progress against the implementation plan is slower than expected

67. The Scottish Government expects that, once commercial provision is included, about 95 per cent of premises in Scotland as a whole will have access to the broadband network by December 2017:

• The contractual targets set in the rest of Scotland contract will provide access to 96 per cent of premises, once commercial provision is included. The Scottish Government is focused on meeting its contractual targets, as this will deliver the level of coverage it seeks overall. Page 281 30 | Appendix 8

• The Highlands and islands contract is expected to provide access to only about a quarter of the premises included in the rest of Scotland contract. Once commercial coverage is included, the Highlands and islands contract will provide access to 82 per cent of premises across the area, based on the contractual targets. HIE is focused on achieving the implementation plan targets as it expects this will deliver access to 84 per cent of premises in the Highlands and islands.

• Owing to this difference in approach, we discuss progress to date against both the contractual and implementation plan targets in the next section.

So far, BT has exceeded its contractual targets by 57,294 premises 68. At December 2014, BT had exceeded its contractual coverage targets in both the rest of Scotland and Highlands and islands areas:

• BT had provided access to the broadband network to 165,188 premises in the rest of Scotland area. The contractual target for this period was 121,205 premises.

• In the Highlands and islands, BT had provided access to the broadband network to 44,440 premises, against a contractual target of 31,129.

• For Scotland as a whole, this means that BT exceeded its contractual targets by 57,294 premises (27 per cent).

As at December 2014, BT was 14,253 premises behind its implementation plan targets for Scotland as a whole 69. In the Highlands and islands, BT encountered delays in obtaining marine licences for the subsea cabling, although it still completed this element of its work in 2014. At the end of December 2014, the number of premises provided with access to superfast broadband in the Highlands and islands was 44,440. This is 1,250 less than the target of 45,690 set in the implementation plan (Exhibit 6, page 31). BT started 2014 well, exceeding the target set for January to March, but progress was slower in the remaining three quarters. At the end of September, BT was broadly on target against the implementation plan. But it encountered difficulties in getting final power connections to cabinets in the September to December 2014 period, causing a shortfall for the quarter and, overall, for the year.

70. In anticipation of this, BT and HIE agreed to reduce the implementation plan target for the quarter by 8,000 premises. BT completed more connections than expected, leaving a shortfall of 1,250 premises to be carried forward to January to March 2015.

71. In the rest of Scotland area BT made slower than expected progress against the implementation plan in the first two quarters, from March to September 2014 (Exhibit 7, page 31). In part, this was because BT experienced difficulties in meeting the more complex roll-out plans associated with targeting businesses in remote areas, to meet ERDF requirements. By December 2014, the cumulated deficit, when measured against its implementation plan target, was 13,003 premises:

• Between April and June 2014, BT provided 39,992 premises with access to the broadband network against an original implementation plan target of 48,816, resulting in a shortfall of 8,824 premises. Anticipating this shortfall, BT and the Scottish Government reduced the implementation plan target and added the shortfall to the target for the next quarter. Page 282 AppendixPart 2. Progress 8 in delivering superfast broadband in Scotland | 31

Exhibit 6 Progress in providing access to superfast broadband in the Highlands and islands HIE and BT reduced their implementation plan target for September to December 2014 by 8,000 premises and increased the following quarter's target. Overall, HIE has finished the first year of installation work 1,250 premises behind its original implementation plan target.

Highlands and islands 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000

Number of premises reached premises of Number 2,000 0

Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Mar 17 Jun 17 Sep 17 Dec 17

Original implementation plan Achieved Shortfall added to next quarter

Note: HIE is still to verify data on the total achieved from September to December 2014. Source: Audit Scotland analysis of Highlands and islands project monitoring reports

Exhibit 7 Progress in providing access to superfast broadband for the rest of Scotland BT did not meet the original implementation plan targets for March to September 2014, but reduced some of the shortfall in the last quarter of 2014. The target for January to March 2015 now includes 13,000 premises not provided with access to broadband in 2014, as originally planned.

Rest of Scotland 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000

Number of premises reached premises of Number 10,000 0

Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Mar 17 Jun 17 Sep 17 Dec 17

Original implementation plan Achieved Shortfall added to next quarter

Note: The Scottish Government is still to verify data on the total achieved from September to December 2014. Source: Audit Scotland analysis of rest of Scotland project monitoring reports Page 283 32 | Appendix 8

• The implementation plan target for the next quarter, June to September, was reduced again in September 2014 due to ‘relief events’ when, for example, BT had difficulty getting access to privately owned land. The effect was to reduce the revised implementation plan target for July to September 2014 from 73,747, to 53,024 premises. BT provided access to broadband to 55,570 premises in this quarter, leaving a cumulated shortfall of 18,011 premises against its original implementation plan target. This shortfall was added to the September to December target.

• In December 2014, BT reached a further 69,626 premises. The implementation plan target was adjusted again during the quarter, reducing the target by 24,181 premises, from 85,331 to 61,150. By the end of the quarter, the shortfall across the three quarters in the rest of Scotland had reduced to 13,000 premises.

Overall, the projects are on course to deliver the Scottish Government’s interim target for Scotland as a whole by March 2016

72. The two contracts require BT to provide access to a further 464,000 premises by March 2016, 355,000 in the rest of Scotland and 109,000 in the Highlands and islands. Once commercial provision in each area is included, this equates to 86 per cent of premises in the rest of Scotland area and 65 per cent of premises in the Highlands and islands. If BT achieves its contractual targets for March 2016, we calculate it will have provided access to about 84 per cent of premises by March 2016 for Scotland as a whole.

73. On this basis, if BT was to deliver only its contractual targets, the Scottish Government will not achieve its interim target to provide access to the broadband network to at least 85 per cent of premises across Scotland by March 2016. How we calculated However, BT is currently exceeding its contractual targets; it provided access to whether the interim target will 57,000 more premises than expected in the period to December 2014. Assuming be achieved. it delivers its contractual targets over the period January 2015 to March 2016, we calculate that the Scottish Government will exceed the interim target by about 34,000 premises by March 2016.

74. Up to December 2014, BT was providing access to the broadband network to an average of 55,000 premises a quarter in the rest of Scotland and 11,000 premises a quarter in the Highlands and islands. According to the contractual targets, the rate at which premises are provided with access to the broadband network is expected to be slightly higher overall during 2015 than achieved so far. The Scottish Government, HIE and BT remain confident that the contractual targets will be met, and that they will achieve the overall target to provide access to the broadband network to about 95 per cent of premises in Scotland as a whole by December 2017. The achievement of both the interim and overall target is dependent on the delivery of the rest of Scotland contract. The Highlands and islands contract is expected to provide a lower level of access than the Scottish Government’s target for Scotland as a whole.

So far, the proportion of premises capable of receiving maximum speeds of more than 24 Mb/s is greater than set out in the contracts 75. So far, BT is exceeding the speed targets set out in its contracts (Exhibit 4, page 21):

• In the Highlands and islands, BT estimates that 88 per cent of the premises connected between April and September 2014 should receive Page 284 AppendixPart 2. Progress 8 in delivering superfast broadband in Scotland | 33

maximum speeds of more than 24 Mb/s and 75 per cent should receive maximum speeds of more than 30 Mb/s. Under the terms of the contract, BT is required to deliver speeds of more than 24 Mb/s to 64 per cent of premises, and speeds of more than 30 Mb/s to 59 per cent of premises. BT is currently working in the more accessible parts of the Highlands and islands where higher speeds can be expected. It acknowledges it may be harder to continue to provide speeds of more than 24 Mb/s to a high proportion of premises when work starts in less accessible areas.

• In the rest of Scotland, BT estimates that 86 per cent of the premises connected between April and September 2014 should receive maximum speeds of more than 24 Mb/s and 83 per cent should receive maximum speeds of more than 30 Mb/s. The target figures in the contract are 80 per cent and 54 per cent respectively.

Payments to BT are £27 million less than originally planned

76. The contracts require the Scottish Government and HIE to pay an agreed proportion of BT’s eligible costs each quarter, on condition it meets its contractual targets for the number of premises reached by the network. If BT does not meet its contractual premises target for any period, the contracts allow the Scottish Government and/or HIE to withhold all payment for that quarter. The amount paid is determined by how much eligible cost BT can claim, provided it is less than the maximum that could be paid according to the agreed payment profile. Costs are deemed eligible when the work is fully complete, which can delay payments for several months.

The Scottish Government has paid BT £1.2 million less than planned 77. The Scottish Government considered its options in September 2014 when BT was falling behind its implementation plan targets for the rest of Scotland. It decided to ask BT to provide an action plan by 31 October 2014, showing how it would get back on course during 2015. The Scottish Government considered that other options, such as reviewing the programme, delaying payments and, potentially, negotiating new targets with BT, could lead to further delays in progress.

78. The Scottish Government was to pay £15.6 million for the work completed in the nine months January to September 2014, provided BT met its contractual target and could claim sufficient eligible expenditure for work completed up to that point. While BT met its contractual target for the period, it claimed only £14.3 million for the work done. The difference (£1.2 million) is work in progress and will be claimed later.

HIE has paid BT £26.1 million less than planned 79. HIE paid BT a total of £26.2 million for work completed between September 2013 and September 2014, comprising £19.8 million for backhaul infrastructure and £6.4 million for work connecting premises. It originally planned to pay £52.3 million over this period, of which £38.9 million was to be for backhaul infrastructure and £13.4 million for work connecting premises.

80. HIE and BT negotiated revised payment schedules in March and September 2014 to take account of the arrangements between BT and its sub-sea subcontractors, and reflecting ongoing discussions about how best to report progress on installing the backhaul infrastructure. In the early days of the contract, BT did not have processes agreed with BDUK to allow it to report how much time BT staff were spending on specific backhaul installation tasks. Page 285 34 | Appendix 8

81. As a result, HIE did not have evidence of the eligible costs incurred and has not paid BT in line with the original payment schedule. Consequently, £12 million (17 per cent) of HIE’s total planned expenditure on the project for 2014/15 will now occur in 2015/16. The Scottish Government, as fund holder for both projects, will retain the £12 million until it is required by HIE. The revised payment schedule also means that there will be additional money for investment in the Highlands and islands project due to the extra interest earned from HIE’s advance payment of £20 million to BT.

Arrangements for scrutinising progress against the contracts are good although there are challenges in checking work done

82. The Scottish Government and HIE have established appropriate governance arrangements for scrutinising the progress of both projects. Operational oversight of the projects is provided by programme boards in both the Scottish Government and HIE. The Scottish Government’s Strategic Management Board and the HIE Board oversee their respective projects. At a national level, the Scottish Government’s Infrastructure Action Plan Board scrutinises both projects. It considers significant risks that might affect the targets set for the infrastructure programme (Exhibit 8, page 35).

83. Both teams regularly report on progress. The rest of Scotland team uses a dashboard format while the Highlands and islands project board provides information in papers submitted to the HIE Board. Both approaches provide a useful summary of progress by reporting on delivery against the work plan, payments made and any issues arising.

HIE and the Scottish Government are using tried and tested systems to monitor BT’s progress but there are challenges in checking work done 84. BDUK has designed a standard contract management approach to enable project teams to monitor and review BT’s progress. BDUK based these processes on the early experiences of other UK broadband projects. It has also trained project team staff in the processes, and provided standard document formats to monitor and report on the work done.

85. The rest of Scotland project team is required to follow BDUK’s processes as part of its use of the BDUK framework agreement. The Highlands and islands project team chose to follow these approaches, although it is not required to do so. For the most part, both bodies are using tried and tested systems to monitor BT’s progress. Both project teams had trouble implementing some of BDUK’s standard contract management arrangements. The main challenges teams face include:

• The system for reporting on progress in each area is complex. Each quarter, in line with BDUK requirements, BT produces reports that show the number of premises connected in each postcode area, the links made between exchanges and cabinets, and the outcome of survey work completed in the area. Project teams are still learning how best to use this information to monitor and report on their projects.

• The work requires very detailed checking of a large amount of invoiced work. The aim is to verify that BT is only claiming for eligible expenditure, and that costs are in line with those expected. Claims for work done that the project teams agree are then included in the payment made that quarter to BT. Payment for other items is deferred, and may be subject to further discussion with BT. Page 286 AppendixPart 2. Progress 8 in delivering superfast broadband in Scotland | 35

Exhibit 8 Governance arrangements for both projects

Scottish Government's Infrastructure Action Plan Board

Quarterly - Scottish Government’s Director of Digital Scotland - HIE’s Chief Executive - Scottish Government non-executive director - Representatives from Scottish Government finance, Scottish Futures Trust, COSLA, Councils.

HIE's Board Project teams update the board every six months and a written update on digital goes to each board meeting.

- HIE board members

Scottish Government’s Strategic Management Board HIE Project Board

Quarterly Quarterly - Representatives from Scottish Government - Representatives from HIE digital project team finance - Councils - Scottish Government Digital Scotland team - BDUK - BT - BT - Council - Rest of Scotland’s Project Director - BDUK

Rest of Scotland Programme Board HIE project management meeting

Monthly Monthly - Representatives from Scottish Government - Representatives from HIE digital team Digital Scotland team - BT - BT

Meetings Attendees

Source: Audit Scotland

Page 287 36 | Appendix 8

86. BDUK’s standard processes require project teams to review between five and ten per cent of the reports which BT submits on work done. In November 2014, BDUK agreed to BT’s request to reduce the number of works reports that the rest of Scotland project team reviews. This is because BT was finding it time- consuming and difficult to sustain providing detailed evidence in support of up to 200 reports that the project team selected to check each quarter. BDUK, BT and the Scottish Government agreed that a maximum of 100 reports will be provided, covering up to ten per cent of project costs for September to December 2014. This means that checking will focus on higher value works reports, which could make it easier for BT to identify which reports will be selected for checking. The Scottish Government and BDUK will review the impact of this change on the quality of the rest of Scotland project team's assurance work in January 2015.

87. Dedicated staff within each project team mainly do contract monitoring work. For the Highlands and islands project, the project manager does most of the checking with help, as needed, from a compliance manager and an implementation manager. The HIE project also draws on specialist teams such as communications, finance and corporate services when required. A team of two individuals leads the monitoring work in the rest of Scotland area, with assistance from others as needed. For both projects, the core teams for monitoring and checking the work are small and may not be able to complete the work fully if individuals are absent.

88. Despite the reduced level of checking in the rest of Scotland contract, the project plans suggest that workloads will increase significantly as the projects ramp up and BT completes work in progress (Exhibits 6 and 7, page 31) . This, together with the complex processes in place, creates a risk that teams will not be able to manage in busier periods. It is important that project teams have the contract management skills and depth needed to manage the contracts throughout their duration. Two further risks apply to the rest of Scotland project, arising from:

• the slow progress made in the initial stages, which is likely to increase the project team’s workload as work is reassigned to later quarters

• the additional work needed as the team monitors progress and submits claims for ERDF funding. The Scottish Government expects to make its first claim for ERDF in February 2015, based on a grant agreement with the Scottish ERDF managing agent. This allows the Scottish Government to draw down some of the money. The claim will not be paid until formal commission approval is obtained.

The expected benefits from the investment are not clear

89. The Scottish Government expects superfast broadband to deliver significant benefits both to individuals and nationally. The Scottish Government and HIE expect superfast broadband to:

• help businesses remain competitive, compete in global markets, cut costs and improve customer service

• improve access to public services allowing these to be delivered in new, convenient and more cost-effective ways

Page 288 AppendixPart 2. Progress 8 in delivering superfast broadband in Scotland | 37

• improve access to different forms of entertainment, education and social interaction

• help retain populations in more remote and fragile communities

• help reduce Scotland’s carbon footprint

• make Scotland more attractive to tourists by making it easier for them to access information.

The project teams have not updated early work to model the benefits expected from the superfast broadband network 90. In 2012, the Scottish Government used consultants to calculate the impact of the investment in superfast broadband on the Scottish economy. Analysys Mason predicted that the public sector investment in both areas would directly benefit the economy by £1 billion with a further £2 billion economic benefit by 2028. Anticipated direct benefits might include revenue raised from providing Internet services over the new network, and the knock-on effect from new jobs. Economic benefits might include savings from online efficiencies, increased productivity for businesses, the public sector and consumers, and environmental benefits and flexible working. Analysys Mason also predicted that the projects would create 870 jobs over the five-year roll-out period and a further 14,000 over a 15-year period.

91. The consultants’ modelling assumed that 80 per cent of premises would connect to the superfast broadband network over 15 years. This is significantly more than the take-up rates used by BT when deciding how much to invest in the contracts. BT modelled its level of investment in both projects based on an assumed take-up rate of 20 per cent over five years. The project teams in HIE and the Scottish Government expect take-up in the Highlands and islands and the rest of Scotland to be higher, at 40 per cent and 30 per cent after two and 2.5 years respectively.

92. It is important that both HIE and the Scottish Government understand what benefits their investment in superfast broadband will bring, and use this when deciding how further funds are used. Neither the Scottish Government nor HIE have updated the consultants’ work on the expected levels of benefits to take account of possible lower take-up rates.

Project teams do not yet have fully developed plans to measure the benefits achieved once the network is completed 93. The Scottish Government and HIE need to fully develop their plans on how best to measure the wider economic and social benefits of their broadband investment. The Scottish Government published its digital performance framework in February 2014. This framework links to four of the high-level targets in the Scottish Government’s National Performance Framework. They are to increase Scotland’s rate of economic growth, improve productivity, improve economic participation and reduce inequalities in economic participation across Scotland.

94. The digital performance framework has 17 measures to assess performance on each of the four programmes in the Scottish Government’s digital strategy (Exhibit 9, page 39). Several Scottish public bodies are involved in gathering the baseline and monitoring data required for each measure. So far, 11 of the 17 measures have an identified data source. Scottish Enterprise and HIE are

Page 289 38 | Appendix 8

responsible for identifying how the impact on business performance will be measured. Knowing if businesses have improved their service delivery or expanded their business is important, as this was one of the key reasons put forward for the investment.

95. None of the performance measures assess the broadband speeds achieved, as either a maximum, mean or median. Ofcom collects some information on speeds across the UK from a sample of properties. However, the speed bands it uses for reporting do not separately measure speeds of more than 40 Mb/s. There are also no measures of take-up. Including measures on the speed achieved and of take-up in the digital performance framework would help the Scottish Government to assess the success of its investment in helping to improve digital connectivity.

96. The rest of Scotland project team has identified a number of performance indicators to monitor the success of its work to stimulate demand for superfast broadband. One of these performance indicators measures the cost of demand stimulation work per premise that takes up access to superfast broadband. A similar measure for the whole cost of investment would help assess how unit costs change as take-up increases over time. It would also provide a comparator for public bodies to use when assessing the savings they have made by using superfast broadband to deliver public services.

97. BDUK has developed a scorecard that compares the UK’s digital performance against that of other European countries. The coverage measure is similar to that on the Scottish Government’s framework but the remaining three performance areas look at speed, take-up and price. The Scottish Government may find it useful to benchmark Scotland against other countries by adopting some of these measures.

98. The Scottish Council of Voluntary Organisations (SCVO) has also developed a framework to measure the impact of its digital participation work and to understand the effectiveness of its activities. However, SCVO and the Scottish Government have not agreed how they will collect the information and what measures they may use. This means it may prove difficult to get a clear picture of what is happening and lead to some duplication of effort.

Page 290 AppendixPart 2. Progress 8 in delivering superfast broadband in Scotland | 39

Exhibit 9 The Scottish Government's digital performance framework

Digital Digital public Digital participation services economy Connectivity

Increase the Increase number Increase the level Increase total number of of people and of e-intensity superfast individuals who businesses using across all broadband regularly use digitally delivered business sectors coverage as a the Internet and public services percentage of who access the Increase premises Internet on a percentage mobile device of businesses Increase time Increase 3G/4G adapting their and cost savings mobile coverage for people using business strategy Improve levels of as percentage of digitally delivered to embrace digital digital literacy population public services technologies

Increase use of Increase public services on Increase number percentage of the Internet of public bodies enterprises with sharing more data broadband access to improve quality and effectiveness Increase the Increase of their services number of people percentage undertaking of businesses digital training Increase the experiencing courses leading to growth as a result employment efficiency of public sector of investment in ICT operations digital processes

Increase use of the Internet by small and medium-sized enterprises for selling

Increase the proportion of inward investment in the ICT sector

Increase Measures with data sources the depth of identified in the framework digital skills in businesses across all sectors

Source: Digital Scotland performance framework The Scottish Government Page 291 40 | Appendix 8

Recommendations

The Scottish Government and HIE should:

• encourage take-up of superfast broadband to maximise the benefits of their investments and identify what further work is needed to realise these benefits

• develop clear plans, by June 2015, for the planned investment of a further £42 million in superfast broadband, announced by the UK and Scottish Government in February 2014. These plans should strike an appropriate balance between extending coverage in areas where there is no access to superfast broadband, and increasing speeds in premises where access is already provided. These plans should: – set clear priorities and a timetable for further investment in superfast broadband – include an assessment of how the existing investment can best be used to help contribute towards meeting the EU aspiration of 50 per cent uptake of ultrafast broadband (speeds faster than 100 Mb/s) by households in Europe

• review work programmes and payment profiles and make any changes necessary to ensure that payment is closely linked to successfully achieving the agreed targets

• keep staffing levels and workloads under review, and alter the skills mix and number of staff when needed, to ensure that teams are able to fulfil their contract management and monitoring roles well

• continue to develop their performance measurement frameworks, by including measures that address speeds delivered, the unit cost to provide access to superfast broadband to each premise and levels of take-up, as well as measures that allow benchmarking with other countries’ implementation of superfast broadband. Both bodies should report publicly on these measures each year.

Page 292 Appendix 8 Endnotes | 41

Endnotes

W 1 Communications market report, Scotland, Ofcom, August 2013. Ofcom/operators. Ofcom defines superfast broadband as speeds above 30 Mb/s.

W 2 Digital Agenda for Europe – High Speed Broadband .

W 3 Scotland’s Digital Future – Infrastructure Action Plan, Scottish Government, January 2012.

W 4 Scotland’s Digital Future – Infrastructure Action Plan, Step Change 2015 Procurement Plan, Scottish Government, May 2012.

W 5 BT must provide access to its infrastructure to all service providers at the same price and on the same terms as it sells to BT retail. This ensures households get the best choice of providers at affordable prices.

W 6 Scotland’s Digital Future , Scottish Government, March 2011.

W 7 Scotland’s Digital Future – Infrastructure Action Plan, Scottish Government, January 2012.

W 8 Scotland’s Digital Future – Infrastructure Action Plan, Step Change 2015 Procurement Plan, Scottish Government, May 2012.

W 9 The UK Treasury uses the Barnett formula to adjust the amounts of public expenditure allocated automatically to Scotland in response to changes in the spending levels for similar public services in England, Wales or Great Britain, as appropriate. The formula takes account of the amount of additional money given, the relative population of each area and how much similarity there is with what the Scottish Government is responsible for delivering, when compared with its English counterpart.

W 10 ERDF can be used in Aberdeenshire, Angus, Dumfries and Galloway, East Ayrshire, East Lothian, Fife, Perth and Kinross, The Scottish Borders, South Lanarkshire, Stirlingshire, West Dunbartonshire and West Lothian.

W 11 ADSL stands for asymmetric digital subscriber line. These are standard copper wire telephone lines linked to boosters in the exchanges that improve their connectivity.

W 12 The European Commission published its State aid notification for all BDUK projects in November 2012.

W 13 Competitive dialogue is a procurement process used for complex contracts where the buyer cannot define the technical solution in advance. Bidders develop their solutions through discussions with the buyer before submitting their tender.

W 14 The four initial companies were Fujitsu, Cable & Wireless, BT and Commendium. Fujitsu withdrew before submitting an outline solution and Cable & Wireless’es solution was non-compliant. Commendium’s solution was to deliver superfast broadband over powerlines. It, however, did not proceed past the competitive dialogue stage.

W 15 The rural broadband programme, National Audit Office, July 2013.

W 16 The superfast (rural) broadband programme: update , National Audit Office, January 2015.

Page 293 42 | Appendix 8

Appendix 1 Audit methodology

We reviewed the following documents and papers:

• Scottish Government and HIE strategy and policy documents, reports and statistics

• contract documents, financial information and meeting minutes for both projects

• BDUK guidance papers

• reports and research by the Royal Society of Edinburgh, Carnegie Trust and other relevant organisations.

We interviewed staff and representatives from various public, private and third sector organisations including:

• Aberdeenshire Council

• BDUK

• Carnegie UK Trust

• Community Broadband Scotland

• Convention of Scottish Local Authorities

• Highlands and Islands Enterprise

• National Audit Office

• Ofcom

• Scottish Council for Voluntary Organisations

• Scottish Enterprise

• Scottish Futures Trust

• Scottish Government

• Wales Audit Office.

We used the information gathered to help develop the exhibits and data used in the report. Details of our approach are as follows: Page 294 Appendix 8 Appendix 1. Audit methodology | 43

Exhibit 3 showing maximum expected superfast broadband speeds

BT provide the Scottish Government and HIE with a list showing the expected upload and download speeds for each premise in the areas where they are working each quarter. We used this information to calculate the average maximum download speeds, for the individual postcode area, that BT expects each premise to get.

We then converted the postcodes to grid references so we could use them in our GIS mapping software. This we plotted using the following bands:

• less than 24 Mb/s

• 24 to 30 Mb/s

• 30 to 40 Mb/s

• above 40 Mb/s.

We used an ordnance survey map background to plot the information.

Exhibits 6 and 7 – Progress in providing access to superfast broadband

These exhibits were developed from the project implementation plans and documents detailing changes from the original plans. They show the target number of premises for each quarter. We plot:

• the original target set out in the implementation plan in BT's bids

• the revised target after change controls are agreed

• and progress against the target, from BT's quarterly reports on this.

Page 295 44 | Appendix 8

Appendix 2 Project advisory group

Audit Scotland would like to thank the members of the project advisory group for their input and advice throughout the audit.

Member Organisation

Carroll Buxton Highlands and Islands Enterprise

Colin Cook Scottish Government

Sally Dyson Scottish Council for Voluntary Organisations

Michael Fourman University of Edinburgh / Royal Society of Edinburgh

James Fowlie Convention of Scottish Local Authorities

Jeremy Morgan Wales Audit Office

Raymond O'Hare Institute of Directors

Note: Members of the advisory group sat in an advisory capacity only. The content and conclusions of this report are the sole responsibility of Audit Scotland.

Page 296 AppendixAppendix 3. HIE and Scottish 8 Government contracts – summary details | 45

Appendix 3 HIE and Scottish Government contracts – summary details

Rest of Scotland Highlands and islands

Contract signed July 2013 March 2013

Construction period length 4 years 6 months 3 years 9 months

Work to build the network December 2017 December 2016 completed by

Number of premises that are expected to get access 595,000 151,000 to superfast broadband through the contracts

Number of premises with access to broadband 1,678,000 51,000 through commercial coverage, by 2015.

Area 27 councils in the south and east of Orkney, Shetland and the Western Scotland, including parts of Argyll and Isles, Highland Council, Moray and Bute and North Ayrshire Council. parts of Argyll and Bute and North Ayrshire Council.

Coverage, based on 96 per cent overall; the lowest 82 per cent, although HIE expect to contractual target level of coverage is 89 per cent in exceed this and achieve 84 per cent; the Aberdeenshire. Five council areas, lowest level of coverage is 70 per cent in Dundee City, City of Edinburgh, West the Western Isles and the highest is Lothian, Clackmannanshire and North 93 per cent in Moray Council. Ayrshire, expect coverage of 99 per cent.

Total cost £266.5 million over 11 years includes £145.8 million over 4 years includes up up to £13.5 million as an innovation to £2.5 million innovation fund. fund and £2.2 million for demand stimulation.

Average amount the public sector is paying to bring £230 per premise passed £475 per premise passed superfast broadband to each premise

Page 297 46 | Appendix 8

Rest of Scotland Highlands and islands

Public sector funding UK Government £50m UK Government £50.8m sources over contract (19 per cent) (35 per cent)

period EU £20.5m Scottish Government £41.3m (8 per cent) (28 per cent)

Scottish Government £21.5m HIE £11.4m (8 per cent) (8 per cent)

Individual council £50.7m Collective council £22.9m contribution (19 per cent) contribution (16 per cent) Collective council £17.1m contribution (6 per cent)

BT contribution £106.7 million, over 11 years £19.4 million, over 11 years

Procurement process The Scottish Government used the HIE’s contract was awarded through BDUK framework. Fujitsu was involved a separate procurement that complied in the procurement initially but then with EU rules. HIE had four companies dropped out. interested; all but BT pulled out and only BT submitted a final bid.

Backhaul cabling Limited 400 km of subsea cables and 800 km of land cables

Approach to sub 2 Mb/s All premises to receive a minimum No provision in contract for premises premises speed of at least 2 Mb/s using receiving lower than 2 Mb/s. alternative technology.

Approach to marketing £2.2 million allocated to BT for Led by HIE. £165,000 spend included marketing and encouraging take-up of in the Scottish Government's the service. £2.2 million allocation for initiatives applying across all of Scotland.

Page 298 Appendix 8 Superfast broadband for Scotland A progress report

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