Decision Maker: Executive

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: November 4, 2024

Purpose: To seek approval from the Executive to enter an Inter Authority Agreement to deliver Local Nutrient Mitigation Fund projects.   The Inter Authority Agreement will help facilitate sustainable growth within the Borough, by enabling developers to purchase the mitigation required to achieve nutrient neutrality and, at a later point in time, Biodiversity Net Gain units.   The Agreement is designed to mitigate the risk to the Lead Authority and provide a fair mechanism to cover the benefits and liabilities arising from the funds across the PfSH and catchment areas.   In 2019, Natural England issued advice to Fareham Borough Council (along with most other authorities in South Hampshire), in respect of all new overnight accommodation (e.g houses, hotels, care homes).  The advice highlighted the detrimental impacts of increased levels of nutrients derived from development upon Special Protection Areas, Special Areas of Conservation and RAMSAR sites within The Solent (often referred to as Habitat Sites) and the need to mitigate these impacts.   Following this advice during 2019 and 2020, whilst the Council was seeking to identify a solution, the Council was only able to issue very few planning permissions for developments containing overnight accommodation as when deciding planning applications, the Council has a legal duty to consider whether any impacts from new development are likely to have a significant effect upon Habitat Sites.  Where the is no evidence that an impact can be mitigated, a permission cannot be issued.   The agreed solution found was based on an offsetting approach.  It was agreed that where proposals could demonstrate that an equivalent amount of nutrients could be prevented from the entering Habitats Sites elsewhere, then a development could be approved subject to a planning condition requiring the developer to demonstrate how the mitigation measure has been identified and agreed.   This approach has resulted in a system of mitigation in the form of ‘credits’.  The corresponding number of credits, equivalent to the impact of the development, are purchased from a third-party supplier prior to the occupation of the development. Such third-party mitigation schemes take the form of land being removed from agricultural use, and the land being used for alternative uses that limit nitrates entering the ground, including re-wilding and tree planting.  This Council has presently identified three such schemes, (two on the Isle of Wight and one in the Winchester District) which can be used to mitigate the impact of nutrients arising from developments in Fareham.   The Natural England advice affects local authorities in the Partnership for South Hampshire (PfSH) area.  In May 2023 Fareham Borough Council on behalf of PfSH provided an expression of interest to government for funding to provide local authority led nutrient mitigation solutions across The Solent.  Funding of £9.6 million, was awarded from the Ministry of Housing, Communities and Local Government (MHCLG) in January 2024 to facilitate the delivery of nutrient mitigation across the Solent sub-region, this funding being referred to as the Local Nutrient Mitigation Fund (LNMF). Fareham Borough Council was identified as the Lead Authority in respect of the fund and signed a Memorandum of Understanding (MOU) associated with the requirements of the funding.   To manage the relationship between the Lead Authority and the projects being delivered by the LNMF, an inter Authority Agreement (IAA) has been created to facilitate the partnership approach, manage and mitigate risks and ensure that shared benefits and responsibilities are able to be realised by authorities party to the agreement.   To be able to benefit from the LNMF projects, PfSH authorities are required to enter the Inter Authority Agreement.  This report explains the principles and responsibilities stipulated by the IAA and seeks authority from the Executive to enter it on behalf of the Council.  

Content: RESOLVED that the Executive:   (a)  notes the principles of the Inter Authority Agreement;   (b)  agrees that the Director of Planning and Regeneration , following consultation with the Council’s Section 151 Officer and Executive Member for Planning and Development, is delegated to agree to final terms to the Inter Authority Agreement as may be agreed between the parties and once finalised, to enter the Inter Authority Agreement on behalf of the Council as Local Planning Authority;   (c)  agrees that the Director of Planning and Regeneration is delegated to agree to the Council being a Benefitting Authority and/or Monitoring Authority for projects delivered through the Inter Authority Agreement following consultation with the Council’s Section 151 Officer and Executive Member for Planning and Development. This postholder will be the “Authorised Officer” acting on behalf of the Council as Local Planning Authority under the Inter Authority Agreement;   (d)  notes the role and responsibility for Fareham Borough Council as Lead Authority, and the mitigations in place to manage potential risks; and   (e)  notes the role and responsibility for Fareham Borough Council as Host Authority in relation to the Land at Stubbington project, and the mitigations in place to manage potential risks.