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You are here: BAILII >> Databases >> England and Wales High Court (Administrative Court) Decisions >> Swale Borough Council v Secretary of State for Housing Communities and Local Government & Anor [2020] EWHC 3482 (Admin) (17 December 2020) URL: http://www.bailii.org/ew/cases/EWHC/Admin/2020/3482.html Cite as: [2020] EWHC 3482 (Admin) |
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QUEEN'S BENCH DIVISION
PLANNING COURT
Strand, London, WC2A 2LL |
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B e f o r e :
Sitting as a High Court judge
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SWALE BOROUGH COUNCIL |
Claimant |
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- and - |
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(1) SECRETARY OF STATE FOR HOUSING COMMUNITIES AND LOCAL GOVERNMENT (2) SW ATTWOOD AND PARTNERS |
Defendants |
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GEORGE MACKENZIE (instructed by GLS) for Defendant (1)
PETER VILLAGE QC (instructed by Winckworth Sherwood) for Defendant (2)
Hearing dates: 8 December 2020
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Crown Copyright ©
SIR ROSS CRANSTON:
Introduction
Background
The affordable housing issue
"If, however, the viability position is to change during the course of the appeal (for example, at the Case Management Conference call your client's barrister referred to a potential challenge to the KCC [Kent CC's] request for secondary school contributions), then the Council would expect this sum of money to be recycled within the s.106 to provide affordable housing…[W]e will be making this point as part of our case."
"Following notice from the appellant [Attwood] that they were seeking to challenge the Secondary School contribution sought by Kent County Council, the Council did query whether this would release funding that could be made available for affordable housing. However, following the agreed position between K[ent] CC and the appellant on a revised secondary school contribution, and the acceptance of increased costs relating to highways works, the Council is satisfied that there is no surplus to be allocated towards affordable housing."
The highways issue
Decision letter on the appeal
"26. The Council has agreed the findings of the latest viability statement prepared by the appellant and has accepted that, taking account of the contributions that would be secured in the engrossed Section 106 Unilateral Undertaking (S106 UU) that the appellant has provided, the inclusion of affordable housing would make the proposed development not economically viable. The proposal would accord with [the Council's] Policy DM8, as the appellant has demonstrated that the impact of viability of the provision of affordable housing has not changed from the 0% sought under the Policy."
"38. The obligations to secure contributions towards highway improvements at the Halfway Road junction and Darlington Drive / Parsonage Chase would be necessary to mitigate any adverse impacts on the local highway network of additional traffic that would be generated by the development. This money would be used to deliver traffic measures on local roads, including The Crescent and Lowfield Road, Darlington Drive and Parsonage Chase, to discourage rat running that could result from additional queuing due to increased traffic generated by the proposal at the Halfway / Minster Road signal junction and the Barton Hill Drive / Minster Road mini roundabout. The amount that would be provided has been calculated by KCC as being that which would deliver the appropriate traffic management measures."
Decision letter on costs
"10. The reason for refusal on affordable housing was not pursued at the Inquiry. The appellant raised the issue of viability in its proof of evidence. At the Case Management Conference (CMC) the Council proposed to deal with affordable housing under the planning topic. The matter that the appeal scheme cannot make any contribution towards affordable housing was already agreed before the Council signed the topic specific SoCG on the third day of the Inquiry. No time was spent on this topic at the Inquiry and no time was wasted on it. It was not unreasonable behaviour, and considerable time was saved at the Inquiry in any event."
"[16] The Council refused planning permission for four reasons. The third reason for refusal on grounds of affordable housing contribution was withdrawn with the Council suggesting that it informed the appellant on 18 December. However, this does not appear to me to have been conclusive as the Council pursued this matter with regard to the s.106 planning obligations contributions. In this respect the appellant's evidence on viability that it provided for the Inquiry could have been avoided, even though the Council claimed that it was related to the level of secondary education contributions. Therefore, I find that the Council acted unreasonably in refusing planning permission for this reason, which clearly was not supported by the evidence or development plan policies, and failing to produce evidence to substantiate this reason for refusal. As a result, the appellant incurred unnecessary expense in its preparation of evidence on affordable housing and viability for the Inquiry.
"[17] In terms of the fourth reason for refusal on highways grounds, the Council only withdrew it following a meeting on 27 January 2020. This was based on agreement to a planning condition and a planning obligation to secure mitigation. Kent County Council as the local highway authority, had not supported the reason for refusal and, although it agreed to the mitigation measures, it did not object to the proposal on highway grounds. As such, the Council had gone against the expert advice of its highway authority and its own planning officers, who recommended the grant of planning permission. Although it provided expert evidence to support this reason for refusal, this evidence was not examined at the Inquiry. In my opinion, this ground could have been resolved without the need for the appellant to provide evidence to contest it at the Inquiry and therefore the appellant has incurred unnecessary expense in providing this evidence."
Legal framework on costs
"[T]he test is one of unreasonableness, not just whether an authority has produced evidence to substantiate their case on a particular issue. I respectfully adopt the view of Hutchison J in R v Secretary of State for the Environment, ex parte Chichester District Council [1993] 2 PLR 1 DC, that the proper test is that set out in para 5 of the circular, namely has the unreasonable conduct of the authority caused the other party to incur unnecessary expense. This is how he put it at p8 of the report:
'… I cannot accept that the correct test is whether the authority had produced substantial evidence to support their case. Mr Mole relied heavily on para 7 of the policy statement, contending that it in effect requires that the inspector should examine the evidence and the reasons, treating para 7 as a sort of check list; …'
In my judgment, … the test is that stated in para 5 — had the unreasonable conduct of the authority caused the other party to incur unnecessary expense; and that para 7 is intended to give guidance as to some of the different matters which may be relevant to deciding that issue. Thus, while the question of whether there was or was not substantial evidence to support the authority's objections will usually be a relevant one, it does not embody the legal test for making an order for costs."
"The preparation of the section 106 agreement, as the inspector rightly said, was not a matter for him. It was not for the inspector to spend his time considering the section 106 agreement because it was a perfect waste of time. It was unnecessary for his decision. It was unnecessary for the grant of planning permission. In my judgment, he has misdirected himself and arrived at a decision which I have to categorise as irrational in his approach to the question of costs."
(i) the Secretary of State is entitled to adopt a policy about costs and having done so his inspectors must apply it;
(ii) the policy is that costs may be awarded against a party for unreasonable behaviour resulting in unnecessary or wasted expense;
(iii) "unreasonable" means unreasonable in the ordinary sense of the word, not unreasonable in a Wednesbury sense;
(iv) a Council's behaviour may be unreasonable if its refusal of planning permission could not be supported by substantial evidence, but that is not the only test and there may be other relevant factors;
(v) one example is if a developer signs a section 106 agreement; it is accepting that it is reasonable even though the inspector may not be persuaded that it is necessary.
Ground 1: costs relating to affordable housing and viability issue
Ground 2: costs award in relation to highways and traffic impacts
Conclusion