Funding opportunities in Town Planning: are you missing out?

That means that more than half of NHS senior leaders are  likely missing out on critical – and potentially significant – sums of money to improve their healthcare estate. 

Where does the £7 billion figure come from?

In 2018-2019, a report by the Ministry of Housing, Communities and Local Government (published in August 2020) found that £7 billion a year was circulating in Developer Contributions.

The report detailed how this funding was distributed among different infrastructure providers. Worryingly, health was included in the 'other' category rather than independently and received only £187 million. For comparison, education received £439 million, and transport received £294 million.

Why’s the money not being accessed?

Working with the Department of Health, in 2022, we commissioned an independent report to find out what the barriers were and how we can overcome them. The no.1 recommendation was that NHS leaders needed more expertise to secure funding – as accessing developer contributions requires a lot of evidence, professional knowledge and negotiation (and steel!). 

And our latest research showed us this is a broader issue... In fact, 6 out of 10 ICBs and Trusts fail to make the most of capital funding because of barriers around capacity, capability or collaboration.

What are Developer Contributions?

Developer contributions are sums of money paid by a developer to the local authority as part of the planning permission process. These contributions often go towards funding improvements that mitigate the impact of a new development and support the community. For example, improving roads, parks, schools, or in our cases - healthcare -in the area.

There are two types of developer contributions - Section 106 (S106) and Community Infrastructure Levy (CIL). So, what are they and how can you access them?

Section 106 

• S106 is site specific and negotiated on a case-by-case basis. The funding is allocated to make improvements that directly serve the increased population or infrastructural pressure coming from a new development.
• The funding can be used for improvements and expansions to existing healthcare sites or to create brand new healthcare premises.
• You need to tie your request for funding to directly mitigate the impact of development to a planning application before the planning application has been granted.
• When applying for this funding, you need to meet the legal tests and be able to show how your proposed healthcare infrastructure directly supports the needs of the development.
• The clearer you show the direct link between the proposed development and the required mitigation, the easier it’ll be to justify the securing of funds.

CIL 

• CIL is more like a tax. It’s a set charge the developers have to pay based on the square footage of their proposed development. The local authority collects this money in a pot, and it could be spent towards any local infrastructure in the area.
• This means transport, education and healthcare, among others, are all vying for the same funding. There’s no set allocation reserved for healthcare only.
• There are different deadlines for every local authority and allocations are typically decided upon every financial year.
• When applying for this funding, you need to put a compelling case forward, supported by a clear explanation as to why your healthcare project is the best use for CIL funding.
• Improving the health system is a key priority for local planning authorities, so having a well-presented case gives you a strong chance at securing this funding.