Decision details

Proposed decision:

(i)             AGREE to enter into a Memorandum of Understanding to accept £9.8m capital and Memorandums of Understanding for supporting revenue funding from DLUHC to support nutrient neutrality mitigation works in East Kent.

(ii)            DELEGATE authority to the Corporate Director of Growth, Environment and Transport, after consultation with the Cabinet Member for Economic Development, and Corporate Director of Finance, to review and agree to the required terms and conditions to enter into the necessary grant arrangements.

(iii)          AGREE for the Director for Growth and Communities to bring a strategy for delivery of nutrient neutrality for adoption to Growth, Economic Development and Communities Cabinet Committee prior to claiming the capital funding.

Reason for Decision

To agree to enter into  Memorandums of Understanding (MoUs) with the government to access £9.8m capital funding and £430k revenue funding to tackle nutrient neutrality issues in East Kent.

Background.

The requirement for nutrient neutrality in the catchment for the Stodmarsh National Nature Reserve is having a significant impact on the delivery of homes in East Kent.

The government is offering £9.8m of capital for nutrient neutrality mitigation in East Kent along with revenue grants to support the delivery of the strategy.

KCC has to sign MoUs with the government to access the grants available. Further rounds of decision-making limit the exposure to risk of signing these MoUs.

A decision about the adoption of a nutrient mitigation strategy will be brought to GEDCCC in future prior to claiming the capital funding available.

Options

To not accept the grant offer. This option is not recommended. Nutrient neutrality is a significant constraint on housing development and requires significant mitigation to offset. Without government support there is unlikely to be sufficient mitigation provided in the catchment to unlock housing in East Kent.

Agree to enter into  the MOUs to access the grants to enable a programme to be developed and delivered. This option is recommended.

How the proposed decision supports Framing Kent’s Future 2022-2026: (https://www.kent.gov.uk/about-the-council/strategies-and-policies/corporate-policies/our-council-strategy)

Under priority 2 – Tackling nutrient neutrality will support commitments for new housing developments to provide “the appropriate physical and social infrastructure necessary to support new and existing communities’ quality of life.” 

Under priority 3 – Anyresidual funding must be invested in measures to aid the restoration of Stodmarsh to a favourable conservation status; and secondarily the objectives of sustainable development and promoting public access to nature.

How the proposed decision supports Securing Kent’s Future: Securing Kents Future - Budget Recovery Strategy.pdf

The delivery of nutrient neutrality programme meets the best value objectives in Securing Kent’s Future as it does not burden KCC with any additional financial commitments. It also protects S106 contributions as it mitigates site development viability issues.

Legal Implications  

The MoUs are not legally binding but represent a future policy commitment to deliver against any conditions set out within.  However, they do not give rise to legally binding contractual obligations.

 In Summer 2020, Natural England issued advice to the local planning authorities on the River Stour (Canterbury, Ashford, Folkestone & Hythe, Maidstone and Swale) that meant new developments must not increase the level of nutrients nitrogen and phosphorus in the River Stour, as they are having a negative impact on Stodmarsh National Nature Reserve. To meet planning requirements, proposed new developments with overnight accommodation must demonstrate that the development achieves nutrient neutrality i.e. the level of nutrients in the river is the same after the development as it was before.

All legal documents required for the preparation, taking and implementation of the decision will be reviewed by legal services as part of the key decision process to ensure all legal obligations are understood and any risks mitigated appropriately.

DLUHC require KCC to sign the MOUs in advance of releasing the grant funding. Additionally, the release of the capital funding will require a further key decision by the Cabinet Member to adopt a strategy to deliver nutrient mitigation.

As Cabinet Member for Economic Development, I agree to:

(i)       AGREE to enter into a Memorandum of Understanding to accept £9.8m capital and Memorandums of Understanding for supporting revenue funding from DLUHC to support nutrient neutrality mitigation works in East Kent.

(ii)       DELEGATE authority to the Corporate Director of Growth, Environment and Transport, after consultation with the Cabinet Member for Economic Development, and Corporate Director of Finance, to review and agree to the required terms and conditions to enter into the necessary grant arrangements.

(iii)      AGREE for the Director for Growth and Communities to bring a strategy for delivery of nutrient neutrality for adoption to Growth, Economic Development and Communities Cabinet Committee prior to claiming the capital funding.