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 (Pdf 418kb)
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. This contribution is referred to as community benefit.
Update on the Status of Community Benefit Negotiations in the Highlands
- Summary of the status of Community Benefit negotiations in the Highlands in September 2006 (pdf 600kb)
- Summary of the status of Community Benefit negotiations in the Highlands in September 2005 (pdf 1698kb)
- Summary of the status of Community Benefit negotiations in the Highlands in September 2004 (pdf 48 kb). This includes an analysis of two recent community benefit agreements for wind farm developments at Farr (Inverness) and Beinn Tharsuinn (Sutherland), which are the first to be finalised since the Council’s Guidance on Community Benefit was produced in April 2003.
Renewable Energy Development in the Highlands
Government incentives to increase renewable energy production have created an unprecedented level of interest in commercial renewable energy development in the Highlands. Intended development varies in size from large-scale wind farms and hydro-schemes proposed by corporate energy companies, to small-scale projects proposed by independent companies specialising in renewable energy production. The Council has been inundated with interest in the development of hydro power and wind farm activity and new interest is expressed on a weekly basis.
Map (pdf 461kb) showing the current level of commercial interest in wind farm and hydro-scheme development in the Highlands.
Community Toolkit: Could your community benefit from renewable energy development?
In 2004, partnership with Highlands and Islands Enterprise, the Council produced a Community Renewables Toolkit highlighting opportunities for communities to benefit from renewable energy production and use. To obtain a hard copy of this toolkit, contact:
Cath King, Policy Manager
The Highland Council, Tel: 01463 702139
or write to her at Council Headquarters, Glenurquhart Road, Inverness IV3 5NX
or email: cath.king@highland.gov.uk
Community Toolkit - main text (Pdf 467kb)
The main text reports on the recent increase in renewable energy development in the Highlands and describes how a community can develop its own renewable energy scheme. It presents an overview of community benefit from commercial development, including a community benefit roadmap for Community Councils and community groups that signposts sources of help. It also offers advice on relevant planning matters.
TOOL 1 (pdf 25kb) provides information on the community benefit negotiation process, including options for community support and the steps and procedures it is advisable for a community to follow when initiating discussions.
TOOL 2 (pdf 19kb) provides information on the voluntary nature of community benefit donations, the approach that developers are taking in the Highlands and the levels of benefit that have been sought and offered to date.
TOOL 3 (pdf 33 kb) presents different forms of community benefit relating to renewable energy development that are currently on offer in the Highlands and across the UK. It highlights issues that communities need take into account when exploring options.
TOOL 4 (pdf 26kb)emphasises the importance of setting up a legally-constituted framework to protect and distribute community benefit funds. It explains why such a framework is necessary and advises on its role and responsibilities.
TOOL 5 (pdf 15kb) explains why it is necessary for a community to enter into a legal agreement with a developer and signposts guidance and support.
TOOL 6 (pdf 24kb) explains how important it is to consider carefully how community benefit funds are used. It suggests a range of approaches that communities may wish to consider in reaching a decision. It also draws attention to a selection of appropriate funding uses and signposts sources of support.
TOOL 7 (pdf 22kb) highlights some of the issues that need to be taken into account in deciding the geographical distribution of community benefit funds. It emphasizes the importance of involving the wider community in the decision-making process and signposts sources of support.
TOOL 8 (pdf 25kb) describes the process involved in setting up and determining the rules of operation of a Community Fund. It presents a relevant case-study and signposts sources of support.
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 Cath King, Policy Manager, The Highland Council, Tel: 01463 702139 or email: cath.king@highland.gov.uk
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.