4.1.1 Section 106 of the Town & Country Planning Act 1990 allows for requests for voluntary contributions to mitigate the effects of developments. ODPM circular 05/2005 gives guidance on such requests. Developer contributions to Education Infrastructure are currently requested for large-scale developments. Historically, it may be the case that some requests may not have been made even though there was a need to mitigate the effect of the children yielded by a development.
4.1.2 More recently, Government guidance for developments to be of higher density and the tendency to develop brown field sites have led to a significant number of developments that have not attracted S 106 contributions. Circular 05/2005 B21 notes that the cumulative effect of developments should be mitigated, along with B22 stating that a discrete piece of infrastructure does not need to be required to justify a request for a contribution. Such developments, therefore, apply pressure on educational infrastructure and their effect should be mitigated.
4.1.3 The Tariff approach, referred to in Circular 05/2005 B33, would be beneficial as it is transparent and simple. Owing to its simplicity, its administration will result in lower costs to developers than would otherwise be the case were the contributions to be negotiated individually.
4.2 Trends in Births in Surrey
4.2.1 The downward trend in births some years ago led to a decline in the school population. This led to various Reviews of School Provision owing to increases in surpluses places in schools. The Surrey births declined until a minimum in 2002, but have recovered since then. Birth rate over a larger area, however, is not necessarily a predictor of birth rate in a local area.
4.2.2 There is geographic variation in the distribution in births. When the statistics are aggregated, it hides local fluctuations in births. For example, Surrey Heath and Epsom and Ewell had a minimum number of births in 2001, whereas in Guildford and Spelthorne the births were higher in 2001 than 2002. Such fluctuations also happen at Ward level. Therefore, birth rate over a district/borough is not necessarily a predictor of birth rate in a local area. However, as noted below, even if there were a surplus of school places in a locality, there would still be pressure on school places in a wider area.
4.2.3 There are many areas in Surrey where the number of births has increased. This is leading to an increased number of pupils subsequently attending schools, increasing pressure on schools generally and particularly on more popular schools.
4.3 Factors affecting pressure on Education Infrastructure
4.3.1 The need for S106 contributions is based on the fact that when new dwellings are built, there will be a certain number of children who live in them - they will yield extra pupils who will attend maintained schools in Surrey. The Education Act 1996 S14 places a duty on Local Authorities to secure that schools are sufficient in number, character and equipment to provide for all pupils the opportunity of appropriate education. Thus effect of these extra pupils needs to be mitigated. Therefore, there is a need to provide additional infrastructure for these pupils, hence the request for S106 contributions in line with to Circular 05/2005 B3 and B15.
4.3.2 Pressure is not applied evenly on all schools. In a local area there may be particularly popular schools and one or two unpopular schools. Section 86 of the School Standards and Framework Act 1998 places a duty on Local Authorities to enable the expression of parental preference as to the school at which they wish education to be provided for their child. S 86 places a further duty to comply with any preference expressed provided compliance with the preference would not prejudice the provision of efficient education or the efficient use of resources. Parents/carers will invariably apply for the popular schools and not for the unpopular schools. Therefore, even if there were an overall surplus of school places in a local area, pressure would be applied to the popular schools by pupils yielded by a development, and this effect needs to be mitigated.
4.3.3 Pressure is not necessarily even across a phase of education. In the primary phase there is Foundation Stage and Key Stage 1 (Infant) and Key Stage 2 (Junior) provision. In most cases the Foundation Stage and Key Stage 1 provision is provided at the same location. In many locations there is separate infant and junior provision. It is not unusual for the places available and/or the demand to be different at different Key Stages within the same area. Therefore, it is entirely possible for pressure to be applied on either one of Infant or Junior places in a locality and not the other.
4.3.4 Unbalanced demand between schools can be exacerbated by an influx of families yielded by a development. Parental preference is modified by the expectation of successfully obtaining a school place, increasing pressure on different schools.
4.3.5 There are circumstances where a school is not full, but the educational infrastructure available is sufficient only for the pupils in the school. Were additional pupils to be yielded by a development, their admission would exacerbate the situation and would prejudice the education of the children already in the school. This effect would need to be mitigated. The additional pupils may trigger the need for substantial re-provisioning of the infrastructure in order to accommodate larger groups of children, and the existing deficiencies would not need to have been resolved but for the additional pupils.
4.3.6 On occasion pupils are admitted to schools subsequent to an Appeal carried out according to S 94 of the School Standards and Framework Act 1998. The Independent Appeal Panel weighs the prejudice to the efficient education that may be provided in the school against the needs of the pupil. A pupil may, therefore, be admitted despite deficiency of infrastructure in a school and the admission of additional pupils on Appeal does not mean there is no need to mitigate the effect of additional pupils yielded by developments.
4.3.6 There may be circumstances where low demand for school places has necessitated a school re-organisation, which may include removal of school provision. The re-provisioning will incur capital costs. Once a decision has been determined on the basis of existing pupil, then it must be enacted. Therefore an existing deficiency in strategic educational provision will have been resolved prior to subsequent developments. Any new pupils yielded by developments after this point will apply pressure on education infrastructure notwithstanding that the education provision had previously been reduced.
4.4 True cost compared with S 106 Contributions
4.4.1 Surrey uses a formula to calculate S106 contributions to Education. The Tariff is based upon this S106 Education Formula (see 44.5.2 below).
4.4.2 It is customary to multiply the pupil yield by a DfES Cost Multiplier. This Cost Multiplier does not reflect the true cost of providing education provision. DfES Statutory Building Guidance, such as BB93 Acoustic Design of Schools, for example, place increased standards on building requirements. Therefore, the contributions requested are still below that which is fairly related in scale to the effect of developments.
4.4.3 Within the number of pupils yielded by a development, a proportion would have disabilities. The Disability Discrimination Act 2005 inserts S 21B into the Disability Discrimination Act 1995 which makes it unlawful for a public authority to discriminate against a disabled person in carrying out its functions. S21E places a duty on Local Authorities to make reasonable adjustments to allow pupils with disabilities to access services. The additional costs to fulfil these duties have not been included in the size of contributions requested, further lowering them below that which is fairly related in scale to the effect of developments.
4.5 The Education Tariff
4.5.1 The contribution per occupant for education is as in the table below:
The Education Tariff is based on the S106 Education Formula. The S106 Education Formula uses the numbers of pupils yielded by a new development. This is obtained from a fraction called the pupil yield. Pupil yield is the average number of children yielded by new dwellings of 2 or more bedrooms. This is as in the table below:
· The S106 requests for 2005-06 were analysed
· the fraction of each number of bedrooms was calculated
· a Yield Ratio was calculated such that when Occupancy is multiplied by the yield ratio, the same average Pupil Yield for that number of dwellings is achieved
· to simplify the formula, a Contribution per Occupant figure is calculated so that the same average S106 contribution is obtained through the Tariff as would be obtained through the new Education Formula
4.5.9 Thus the following figures were obtained:
4.5.10 Therefore, the S106 Code of Practice Education Tariff Figures are necessary, directly related to the proposed developments and fairly and reasonably related in scale.
5.1 The impact of a development on the highway infrastructure can be quantified by determining the total travel generated by a particular land use. The Transportation Element of the tariff seeks to secure improved accessibility by all modes and to mitigate the impact of those accessing development by car. It is based on the principle that developers can reasonably be expected to plan a site so as to mitigate against new travel demands to a level which is proportionate to that currently expended by Surrey County Council on managing existing travel demands.
Calculation of Baseline
5.2 Given the complex nature of travel demand (which include variables such as trip lengths, trip chaining, trip timings, trip frequencies and mode choice values), the level of impact placed on the transportation infrastructure can only be made by approximation. To this end, the following process has been used to derive a baseline charge, which represents an approximation of the financial burden that is placed on the transport infrastructure by an additional movement. This baseline value is adjusted within the formula on the basis of land use occupancy, to produce a site-specific level of developer contributions.
5.3 The baseline charge is calculated by dividing Surrey County Council's current annual expenditure on transport Surrey Local Transport Plan Annual Delivery Report 2001 – 2006 2.1.3 by the existing Surrey related travel demand Surrey County Transport Model – Approx 2.7 million daily trips.
This produces a value of £28.10 per year per daily trip. Within cost benefit analysis of road schemes a typical design life of 25 years is used in such calculations. On this basis, the value of accommodating an additional trip on the network over an impact/design-life period of 25 years (assuming a year-on-year inflation value of 3%) produces a baseline impact supplement of approximately £1,025 over a period of 25 years. This baseline calculation will be reviewed on an annual basis.
5.4 As an incentive towards locating development in a more highly accessible central area, a differential of plus or minus 30% has been applied to the baseline cost per trip, derived from the location of the proposed development.
5.5 Therefore, a contribution per occupant/worker of £1,333 (£1,025 + 30%) will be sought outside of defined town centre areas (as set out in Local Plans and evolving LDF’s) and a contribution per occupant/worker of £718 (£1,025 – 30%) will be sought for developments inside a defined town centre area (See Annexe A). The lower unit cost per occupant/worker associated with those sites within town centres will encourage the development of sustainable sites at higher densities, so reflecting the emphasis on achieving the greatest degree of access by public transport, walking and cycling. This lower unit cost value placed on a town centre site provides a strong incentive for developers to focus development in accessible locations where more emphasis is placed on lower parking provision and less car dependence.
Application of the Transport Impact Supplement
5.6 The following table sets out worked examples of the Transport Element of the tariff, which is dependent upon occupancy and whether or not the site is in a defined town centre.