Communities and Local Government

• Planning, building and the environment
• Planning Delivery Grant 2004-2005

Planning, building and the environment

Planning Delivery Grant 2004-2005

The allocations of Planning Delivery Grant for 2004-05 were announced by 9 March 2004.

The Planning Delivery Grant (PDG) is a performance reward initiative designed to incentivise planning performance. It is providing £350 million over three years, 2003-06, to local authorities to help them improve the planning system and deliver sustainable communities. 2004-05 is the second year of the grant and £130 million will be distributed.

The allocation criteria have been broadened and the grant is no longer just about rewarding authorities for taking quick decisions. Allocations are now based on performance against development control targets, plan making performance, housing delivery in areas of high housing need, location of Enterprise Areas and performance at appeal.

Planning Minister Keith Hill said:

"Planners need to be properly resourced if they are to deliver the radical reforms we have set out. Providing a quality planning service is not just about taking quick decisions, although that is important. This year's allocation criteria recognise that and reward a broad range of planning activity. Where an authority receives a large award it is because they are delivering in at least one important area.

"However, there is no room for complacency and authorities should be aware that they will not receive further reward unless they continue to improve or maintain high levels of performance"

A large number of authorities who received only the minimum allocation this year have improved their performance considerably and will receive large allocations next year. Many of these authorities have been part of ODPM's Best Value Standards regime.

Keith Hill commented:

"It is very pleasing to see these authorities have taken on board the message that the Government is committed to improving the planning system and will reward authorities who deliver performance improvement.

"I would like to congratulate them on their achievement and encourage them and others to push for further improvement. It is particularly pleasing to see the twin levers of Planning Delivery Grant and Best Value Standards working together to drive up performance"

In 2004-05 two conditions will be imposed on PDG payments. These conditions are designed to ensure that ODPM has the power to act appropriately to withhold payment in part or recover part or all of grant paid where there are concerns over the accuracy or proven inaccuracies in the information on which allocations were made.

Grant allocations will also be reduced by 10% for those authorities whose performance in defending appeals is particularly poor. This will provide a measure of assurance that the grant is not rewarding poor quality decisions.

2004-05 is the second year in which PDG has been distributed. The early findings of research commissioned by ODPM suggest that the vast majority of the grant is being spent on planning.

Keith Hill said

"The grant is not ring-fenced and authorities are free to spend allocations as they see fit. However authorities will only receive further reward if they invest in planning and continue to improve or deliver good performance."

"All the evidence indicates that authorities are capable of improving both the speed and quality of the service they offer. The Planning Delivery Grant will further incentivise performance and reward the authorities who deliver improvement".

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