What is Community Benefit?
Community benefit is a “goodwill” contribution voluntarily donated by a developer for the benefit of communities affected by development where this will have a long-term impact on the environment.
Is Community Benefit Mandatory?
There is no legal requirement upon a developer to offer a community benefit donation and Scottish Executive planning guidance prevents this type of payment from becoming a condition of planning permission. A local authority therefore has no powers of enforcement if a developer is unwilling to make a contribution.
The Council’s Policy on Community Benefit
The Highland Council wishes to ensure that local communities benefit directly from the use of their local resources and are compensated for the disruption and inconvenience associated with large scale development work.
Development that has an impact on the environment and resources should be acceptable not only in land use planning terms, but should also have clear and direct benefits for those who live and work in the area. It is the Council’s policy to seek funding and/or in-kind contribution from developers towards local community initiatives in respect of development, such as large renewable energy schemes, which have a long term impact on the environment, of not less than £5,000 per installed Megawatt linked to the Retail Price Index. This contribution is referred to as community benefit.
A key issue for communities is how the money is distributed at the local level. The Council has agreed to use four Allocation Factors to provide an objective and scientific model for sharing funds among communities. The four Allocation Factors are:
- proximity to site
- visual impact
- construction impact
- number of residences
The Council has also agreed for a new Concordat to be established which will set out the terms of a new relationship between the Council and developers. As part of this agreement it will be the Council’s responsibility to provide the framework and infrastructure for receiving and then disbursing Community Benefit and through which developers will agree to provide not less than £5,000 per installed megawatt annually that will appreciate each year in line with the UK Retail Price Index. More information can be found here: Policy to maximise Community Benefit Approved (News release 19/12/11)
Making the Most of Community Benefit Funds (pdf 418kb)
The Council has produced a guidance note on planning for and setting up a legal framework to manage community benefit funds. The guidance is targeted at Community Councils and community groups. It provides an overview of community engagement and legal issues and advises on how these should be approached. It also presents options in selecting a Legal Entity to receive and manage funds with specific reference to Companies Ltd by Guarantee, Community Trusts, charitable status, and trading subsidiaries.
To obtain a hard copy, contact your Corporate Manager.
Community Benefit Guidance for Developers (pdf 137kb)
The Council has prepared a pro-forma legal agreement that provides an idea of the detail and clauses included in a community benefit agreement between a community and a developer. Communities entering into an agreement for a specific development are advised to obtain specific legal advice and guidance.
ProForma Minute of Agreement between a Community and a Developer (pdf 28 kb)
The Council has prepared a pro-forma legal agreement that provides an idea of the detail and clauses included in a community benefit agreement between a community and a developer. Communities entering into an agreement for a specific development are advised to obtain specific legal advice and guidance.
Report on the Economics of Renewable Energy
This report and appendices, entitled “An Evaluation of Alternative / Renewable Energy Schemes” was commissioned by the Council in collaboration with Comhairle nan Eilean Siar (CNES). The report was prepared by IPA Energy Consulting in association with Brodies. It demonstrates that the profitability of renewable energy schemes varies according to a range of parameters, including technology type and the nature of the development company. See "current documents" for a copy of the report and annex.