Purpose

In July 2020, Natural England’s nutrient
neutrality requirement prevented the Council from granting planning
permission for new housing in the Stour Catchment unless suitable
mitigation was secured. As a result, housebuilding was
significantly impacted, leading to increased temporary
accommodation costs, extended housing waiting list, and delayed
brownfield regeneration.
After a strategic wetland proposal was paused, the Council is now
pursuing smaller, deliverable mitigation measures to build a bank
of nutrient credits. These include, among others, water efficiency
retrofitting across Council housing stock using flow control
devices to reduce water use and generate phosphorus credits. This
programme also reduces tenant bills and long-term maintenance costs
and is funded from existing nutrient neutrality budgets.
Existing powers allow mitigation to be secured through s.106
obligations, and approval was granted to the Deputy Chief Executive
to negotiate and purchase external mitigation where required.
Collectively, these measures are expected to provide sufficient
mitigation within existing budgets to unblock the Council’s
housing programme, subject to completion of the necessary
appropriate assessments under the Habitats Regulations.

Decision

Recommended:
That (i) the Deputy Chief Executive be authorised to negotiate
prices and the terms and conditions of purchase contracts for
Stodmarsh mitigation to be acquired from external parties, in order
to meet (along with mitigation created by the Council and within
existing approved budgets) all the needs outlined in para. 3 of the
report.
(ii) the sale of Stodmarsh mitigation created and/or acquired by
the Council to its subsidiary companies as outlined in paras. 3(b)
and (c) of the report, be agreed in principle.
(iii) the methodology of setting sale prices as detailed in the
report be agreed and the Deputy Chief Executive be delegated the
setting of prices, and the carrying-out of any necessary
assessments for Subsidy control purposes, once the sources of
mitigation are firmed up/secured.
(iv) the Solicitor to the Council and Monitoring Officer be
authorised, in consultation with the Deputy Chief Executive, to
negotiate, finalise and complete all necessary legal agreements and
other documents to give effect to the above.

Alternative options considered

Option 1 - To do nothing
Option 2 - Wait for a private sector led solution
Option 3 - Wait for Government to amend the Regulations and remove
the requirement for developments to be nutrient neutral.