Content

Exemption from publication: There are
confidential appendices to this report, which are exempt by virtue
of paragraph 3 of Schedule 12A of Part 1 of Schedule 12a of the
Local Government Act 1972 because they contain information relating
to the financial or business affairs of any particular person
(including the authority holding that information).

To agree the proposed terms for new Agreement under the Telecoms
Code and instruct in-house Legal Services to complete the
Lease

Reasons for the decision

It is proposed to re-let the land to EE &
H3G (the current Tenant). The agreed rent is consistent with the
valuation principles set out in the Electronic Communications Code
(ECC), and reflects the precedent established in the Vache Farm
case, which classified the site as an “unexceptional rural
site.” Furthermore, the existing agreement is excluded from
the Landlord & Tenant Act 1954, confirming that the ECC governs
the terms of occupation.

The reduction in rent and the shift toward more tenant-friendly
terms are largely attributable to the new Electronic Communications
Code (“the New Code”), introduced under the Digital
Economy Act 2017 and effective from 28th December 2017. The New
Code implemented a "no scheme" valuation method for assessing
consideration for mast and telecommunications sites, alongside less
restrictive provisions for assignment and site sharing. This
revised valuation approach has led telecom operators to seek
substantial rent reductions across their site portfolios, often
ranging from 40% to 90%.

The Operator could also begin proceedings under ECC for a new
Agreement to be determined by the Lands Tribunal on terms that are
less beneficial to the Council than proposed and the Council would
be liable for significantly higher professional fees.

Alternative options considered

As the agreement has expired, failure by the
Council to take timely action may increase the risk of unlawful
occupation of the land.

An alternative option would be to not renew agreements with
existing occupiers and consider using the land for an alternative
use. Whilst achieving a rent in excess of the agreed terms is
possible, this would be significantly outweighed by the
professional costs in obtaining vacant possession of the mast site
from the Operator.