Cheshire East Council is to consult on proposals to grow its economy to £15bn whilst in relation to the Consultation on Phase 2 of the Local Plan, the new Portfolio Holder proposes changes to housing numbers despite that fact that these were demanded by the Local Plan Inspector based on predicted economic growth!
Cheshire East Council is to consult on its draft economic strategy, which outlines plans to grow the local economy to deliver £15bn per year and improve the ‘Quality of Place’ that is so important to the Borough.
The strategy uses a strong evidence base developed over several years and has been developed in partnership with representatives from the private sector.
The last Conservative administration ensured that despite the national and local fiscal pressures, Cheshire East is one of the most successful economies in the UK. However, it is recognised that growth in productivity, or output per hour worked, in Britain generally is lagging behind most leading Western economies and has not yet recovered to its 2007 level – Cheshire East must therefore take appropriate steps to maintain its strong economic position.
The economic strategy is being developed to show how future growth will be managed responsibly and sustainably to support the council’s ambitions and anticipated arrival of HS2 – but acknowledges that the proposals outlined will require external funding for the full opportunities to be realised.
The strategy sets out the council’s economic priorities and will provide a robust evidence-base for discussion with wider, external funding providers including central government and the Cheshire & Warrington LEP.
The strategy will now be presented to Cheshire East residents, communities and business partners for Consultation over the summer and their views sought.
HOWEVER simultaneously, Cheshire East Council is launching another consultation in relation to the second phase of the Local Plan (or SADPD: site allocations and development policies document).
This Document has been in formulation since Phase 1 was adopted in July 2017 and focuses on ‘smaller settlements and rural areas’, waste and minerals and Gypsy & Traveller facilities.
This work is very much welcomed and builds on the information received when many residents, rural businesses and parish councils responded to the first SADPD Consultation last September.
Importantly, in relation to both phases of the Local Plan, completion of the site allocations plan is an important step towards securing a strong and resilient basis for planning in Cheshire East, including maintaining the five-year housing land supply. This enables Cheshire East Council to be able to review the Local Plan in future from a position of strength – without risking a planning free-for all.
In 2018/19 a record 3,062 new homes were completed in Cheshire East. providing accommodation for families and individuals, reducing past housing backlogs and helping the Cheshire East Council demonstrate a five-year supply of housing. Significantly, housebuilding rates that match the Local Plan reflect the predicted need for housing upon which the medium and longer-tern economic strategy (being consulted upon this summer) is based.
However it is deeply worrying that the new Portfolio Holder, Cllr Toni Fox also made the following statement this week;
“The current Local Plan target of 1,800 homes per year is reflective of past economic ambitions and is almost 50 per cent higher than the government’s own calculation of housing need for the borough using their new methodology.
“We want to move promptly to a position whereby our five-year supply targets are closer aligned with the national methodology – and so we will be looking to assess which parts of Local Plan Strategy need to be reviewed and updated.
“To do this, we need to move on with the rest of the Local Plan and so publish the SADPD for formal consultation. This will allow the plan to progress to external examination, where all parties can seek independent scrutiny.”
It is essential that the new administration fully understands that the national methodology for calculating housing numbers is based on the ‘average’ predicted economic performance of all local authorities and that each Council must focus on their own actual’ economic performance.
This is rigorously enforced by the Local Plan Inspectors and in the case of Cheshire East, it must not be forgotten that the local plan was delayed because the Inspector criticised the Council for NOT providing sufficiently high housing supply numbers to accurately reflect the Councils successful economic performance and its estimated economic performance over the life of the Plan!
The current high build-out rates for houses are typical of local authorities with a new Local Plan following years of relative stagnation - these rates will decline exponentially as the period of the Local Plan approaches its end date in 2030!
So too the long-tern fiscal strategies of all councils are based on the numbers of dwellings contributing through Council Tax. Cheshire East Council no longer receives any fiscal support from Central Government and so is dependent on Council Tax and Business Rates for the delivery of all services to CEC residents.
The ambitious goals for the Council’s economic development and sustainability are thus intrinsically linked to the delivery of 36,000 homes by 2030. Any proposed reduction in housing numbers must not be allowed to undermine either the emerging economic strategy, the ability of the Council to deliver its statutory services, the SADPD or the 2017 Adopted Local Plan.
