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.
Decision type: Key
Reason Key: Affects more than two Electoral Divisions;
Decision status: Recommendations Approved
Notice of proposed decision first published: 27/02/2024
Decision due: Not before 27th Mar 2024 by Cabinet Member for Economic Development
Reason: To allow 28 day notice period required under Executive Decision regulations
Lead member: Cabinet Member for Economic Development
Lead director: Stephanie Holt-Castle
Department: Growth, Environment & Transport
Contact: Max Tant, Flood and Water Manager Email: Max.tant@kent.gov.uk or 03000 413466 Email: max.tant@kent.gov.uk.
Consultees
The proposed decision was considered and endorsed by the Growth, Economic Development and Communities Cabinet Committee on 5th March 2024.
Financial implications: KCC will receive £9.8m of grant funding for the delivery of nutrient mitigation measures. There is also £430k of revenue to support the delivery of the capital funding. The Section 151 Officer has signed off the Memoranda of Understanding for supporting revenue funding, in order to process the payments in time for this financial year, to ensure KCC could access the funding of £531,414. Assurances were obtained that the signing of these Memoranda of Understanding will not lead to any financial burden on KCC's base budget.
Equalities implications: Equalities implications: An EqIA has been undertaken for this project. No equalities impacts have been identified. Data Protection implications: A DPIA screening has been undertaken and a DPIA is not required.