ON APPEAL FROM Queens Bench Division
Administrative Court - CO/2290/2015, [2015] EWHC 3808 (Admin)
Mr Justice Mitting
Strand, London, WC2A 2LL |
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B e f o r e :
and
LORD JUSTICE SIMON
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The Queen on the Application of CPRE Kent |
Appellant |
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Dover District Council |
Respondent |
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China Gateway International Limited |
Interested Party |
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for the Appellant
Mr Neil Cameron QC and Mr Zack Simons (instructed by
Dover District Council Legal Services) for the Respondent
Mr Matthew Reed (instructed by Pinsent Masons LLP) for the Interested Party
Hearing date: 1 September 2016
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Crown Copyright ©
Lord Justice Laws:
INTRODUCTION
"1. On 13 May 2012, China Gateway International (CGI) Limited ("CGI") applied for planning permission for an extensive development on two sites on the western fringe of Dover. As originally submitted, the application was for: (a) outline planning permission for: one, the construction of 521 residential units and a 90 apartment retirement 'village' on land at Farthingloe; two, the construction of 31 residential units and a hotel and conference centre at Western Heights; three, the provision of pedestrian access and landscaping work between the two sites; (b) full planning permission for: one, the conversion of the existing buildings on both sites for a variety of purposes; two, the conversion of the Drop Redoubt at Western Heights into a visitor centre and museum.
2. The Farthingloe site lies in a long, dry valley between the A20 and the B2001 to the west of Western Heights. It compromises of 155 hectares of agricultural and scrubland. All of it lies within Kent Downs area of outstanding natural beauty, which runs westward from the western limits of Dover.
3. Western Heights is a prominent hilltop to the west of Dover on which a series of fortifications were built before and during the Napoleonic wars to protect the western flank of Dover. They include the Citadel, now used as an immigration detention centre, and the Drop Redoubt and adjacent bowl. They are acknowledged to be the largest, or one of the largest, and best surviving examples of early nineteenth century fortifications in England. The site is a scheduled monument. The surviving fortifications are in a poor state of repair and are on the English Heritage at risk register."
At the end of paragraph 4 of the judgment Mitting J added this:
"The easternmost edge of the Farthingloe site is 340 metres from the western most fortification and about 1 and half kilometres from the Drop Redoubt."
It is said, and I believe it to be uncontentious, that the scale of the proposed development is unprecedented in an AONB.
"If you decide not to call in this application, this could place the protected landscape of the Area of Outstanding Natural Beauty at risk… "
But the Secretary of State decided not to call it in. Notification of the grant of permission was given on 1 April 2015.
GROUND OF APPEAL SUMMARISED; THE NPPF
"115. Great weight should be given to conserving landscape and scenic beauty in… Areas of Outstanding Natural Beauty, which have the highest status of protection in relation to landscape and scenic beauty…
116. Planning permission should be refused for major developments in these designated areas except in exceptional circumstances and where it can be demonstrated that they are in the public interest. Consideration of such applications should include an assessment of:
- The need for the development, including in terms of any national considerations, and the impact of permitting it, or refusing it, upon the local economy;
- The cost of, and scope for, developing elsewhere outside the designated area, or meeting the need for it in some other way;
- Any detrimental effect on the environment, the landscape and recreational opportunities and the extent to which that could be moderated."
The focus of Mr Westaway's submissions is upon the last bullet point.
THE OFFICERS' REPORT
"Relative to the requirements of Policy DM16 [a provision in the Development Plan]… and the NPPF (paragraph 116), the proposals as presented would have a significant detrimental impact on the landscape and would result in long-term, irreversible harm to both the AONB and the urban edge of the town…"
See also 2.442.
"Achieving a design solution for this location that would help moderate harm to the AONB and deliver a viable quality development is challenging. In view of the concerns relating to the deliverability and marketability of the indicative proposals, Smiths Gore [who had given the council expert advice on the scheme] (as part of the viability assessment) examined an alternative outcome. This suggested a more traditional, lower density development at Farthingloe of around 375 dwelling houses. Smiths Gore concluded that this would be more marketable, financially viable and could also afford the relevant monetary contributions (and £5m heritage payment) currently on offer. This would require a reduction in the Code for Sustainable Homes (CSH) rating from Code 4 to Code 3 (saving build costs of some £4,900 per average unit). This option was included in the information previously sent to and considered by the applicant's viability assessor (BNP Paribas) which has not been challenged and was also subsequently brought to the attention of the applicant, although no comments have been received to date."
See also 2.443, and 2.445:
"The proposals as presented are considered to fall short of demonstrating any suitable moderating effect. The recommendations in this report, as described, seek to address this and in a manner that safeguards development viability and delivers benefits in terms of housing quality."
A possible refinement of the approach set out at 2.215 was described at 2.216, which would reduce the housing density at Farthingloe to "around 365 units". Suggestions as to the phasing of the development are made at 2.221 and 2.224.
"2.447… [I]t is your officers' opinion that offsetting the landscape harm by the modifications outlined in this report would shift the planning balance in favour of the economic and other national benefits of the application. The local economic issues and specific circumstances of this case… are considered to provide a finely balanced exceptional justification for this major AONB development, the benefits of which would be in the public interest. Essential to this conclusion would be seeking all the recommended conditions (changes) and ensuring (by condition/S.106 agreement) the deliverability of all the relevant application 'benefits'. The rationale for the application is as a composite package, and any permission should therefore be framed to ensure the emergence of the proposals in a structured and comprehensive fashion."
I should also cite paragraph 2.457:
"The application has been presented by CGI as a 'once-in-a lifetime opportunity to deliver regeneration for Dover'. It would be open to the Committee (having regard to the relevant requirements of the NPPF) to review the economic, housing delivery, heritage and other benefits associated with the proposals and come to a view as to whether these, and/or any other material planning considerations, would be sufficient to justify permission without one or more of the conditions/restrictions recommended. Based on anticipated concerns from the applicant, the Committee might consider what scope, if any, might exist to increase the residential density on say, FL-C, from that recommended… However, the officer position is that the conditions/changes as set out in this report (informed by independent legal and financial viability advice) are well founded and that all are necessary to deliver the right composite package, including the economic benefits, so that an on balance recommendation of approval can reasonably be made."
BNP PARIBAS
"… I note with concern the Planning Officer's comments at paragraph 2.215 that our not having commented on a sensitivity analysis by the Council's advisors should be taken as agreement to the findings…
I am writing to confirm that I fundamentally disagree with the outcome of the Smiths Gore sensitivity analysis. As you are aware, we had a dialogue with Smiths Gore on the inputs to and the outputs from our appraisals. The result of this dialogue was that Smiths Gore concluded that the Application Scheme maximised the benefits from a residential development on the site.
We have not endorsed the Smiths Gore assessment that a smaller scheme could deliver the benefits provided by the Application Scheme. We did not respond specifically on the sensitivity analysis, as Smiths Gore had agreed that the Application Scheme maximised the benefits and could provide no more…
We have re-run our appraisals to test the impact of the removal of 156 units, as suggested by Smiths Gore. The result is to turn a positive land value of £5.85 million to a negative land value of -£3.03 million. On the basis of this result, the scheme would not secure funding and could not proceed.
For the avoidance of doubt, we do not agree with the planning officer's assessment that the benefits provided by the Application scheme could also be provided by the sensitivity analysis mooted by Smiths Gore. Indeed, our view is that such a scheme would not be capable of providing the benefits offered and could not proceed as it would be incapable of providing a competitive return to the landowner and developers, as required by the National Planning Policy Framework."
"On viability, the applicant's consultant, BNP Paribas, had stated since the report was written that they disagreed with the conclusions of the sensitivity analysis carried out by Smiths Gore, the Council's advisers. In their view, a lower density scheme would turn a positive land value into a negative value and, on this basis, it would not be able to secure the necessary funding. The viability of the scheme would be further undermined by the report's recommendation for graduated payments, when a substantial up-front payment of £1 million had been offered. It was suggested that the density details outlined in the report did not fairly or accurately represent the applicant's proposals. The Principal Planner advised the Committee that, having considered the further views of BNP Paribas, Smiths Gore stood by their analysis that a lower density scheme would be viable and would deliver the same monetary benefits as currently on offer. Officers therefore recommended that a lower density scheme should be approved as it was viable, not excessive for the site and would be compliant with the Core Strategy."
THE COUNCIL'S DECISION
"Mr Westaway accepts that if the only respect in which the decision making of the local planning authority is flawed is its failure to fulfil its statutory duty to make a statement of reasons, the acknowledgement of that failure… will suffice, and no further remedy… is required."
In his skeleton argument in this court, however, Mr Westaway places a somewhat oblique reliance on the obligation imposed by the EIA Regulations: "[t]he need to provide adequate reasons was especially important given that this was an EIA application…" (paragraph 35). I shall return to this.
"Councillors G Cowan, R S Walkden and P Walker spoke in favour of the proposals, stating that the application offered a rare opportunity for regeneration and investment and should be grasped. Its approval would encourage developers to invest in Dover and act as the catalyst for further regeneration of the town. Moreover, it would assist in safeguarding the town's heritage assets and revive the Western Heights area of the town as a tourism destination. Dover lacked a first-class hotel and building one with conference facilities would help to realise the potential of Dover's High Speed rail link and cruise terminal. Approval would be a courageous step but was necessary to give Dover's young people a future. However, it was felt that the application should not be restricted in the way proposed in the recommendation as this could jeopardise the viability of the scheme, deter other developers and be less effective in delivering the economic benefits. The Committee had to assess whether the advantages outweighed the harm that would be caused to the AONB. When seen from the ground and with effective screening, it was believed that this could be minimised. In these exceptional circumstances it was considered that the advantages did outweigh the harmful impact on the AONB.
Councillor B Gardner raised concerns regarding the security of the £5 million heritage payment, the phasing of the development to ensure that all the houses were built and English Heritage match funding. Given the significance of the heritage benefits, it was imperative that the development went ahead as planned to ensure that heritage assets were restored. The Principal Heritage and Urban Designer advised that English Heritage could not provide funding, but the developer's £1 million up-front payment would be used to kick-start funding from other sources…
[Councillor Cronk spoke against the proposal.]
Councillor K E Morris welcomed the public speakers' contributions which had given the Committee food for thought. It was felt that the proposed development would have a balancing effect on recent job losses in the district. The fact that there were developers who were still interested in Dover despite wider economic uncertainties was to be welcomed. There were questions around the scheme's commercial sustainability and for this reason it was suggested that the density of housing at Farthingloe-C should not be reduced as recommended by Officers, nor should linkages be made between construction at Farthingloe-B and the Western Heights. Councillor P M Beresford added that there was a responsibility to make Dover an attractive place to live and work, and to care for the town's heritage. Dover was in great need of regeneration, and by construction and conservation working hand in hand this could be achieved in a sustainable way."
And so the proposal was approved by a majority.
WAS THERE A FAILURE TO APPLY THE REQUIREMENTS OF NPPF PARAGRAPH 116?
REASONS – THE APPLICABLE LAW
"36. The reasons for a decision must be intelligible and they must be adequate. They must enable the reader to understand why the matter was decided as it was and what conclusions were reached on the 'principal important controversial issues', disclosing how any issue of law or fact was resolved. Reasons can be briefly stated, the degree of particularity required depending entirely on the nature of the issues falling for decision. The reasoning must not give rise to a substantial doubt as to whether the decision-maker erred in law, for example by misunderstanding some relevant policy or some other important matter or by failing to reach a rational decision on relevant grounds. But such adverse inference will not readily be drawn. The reasons need refer only to the main issues in the dispute, not to every material consideration. They should enable disappointed developers to assess their prospects of obtaining some alternative development permission, or, as the case may be, their unsuccessful opponents to understand how the policy or approach underlying the grant of permission may impact upon future such applications. Decision letters must be read in a straightforward manner, recognising that they are addressed to parties well aware of the issues involved and the arguments advanced. A reasons challenge will only succeed if the party aggrieved can satisfy the court that he has genuinely been substantially prejudiced by the failure to provide an adequately reasoned decision."
"87. I agree with the submission made by the Defendant and the IP that Lord Brown's formulation in South Bucks, which applies where a minister or inspector is giving a decision on appeal, is not the standard to be applied to a local planning authority's decision to grant planning permission. Planning appeals are an adversarial procedure, akin to court or tribunal proceedings, in which opposing parties make competing submissions, and the decision-maker adjudicates upon them, giving reasons for his conclusions on the 'principal important controversial issues', limited to 'the main issues in dispute' not 'every material consideration' (per Lord Brown in South Bucks at [36]). In contrast, a local planning authority is an administrative body, determining an individual application for planning permission. Its reasons ought to state why planning permission was granted, usually by reference to the relevant planning policies. But it is not conducting a formal adjudication in a dispute between the applicant for planning permission and objectors, and so it is not required to give reasons for rejecting the representations made by those who object to the grant of planning permission.
88. Moreover, as Lady Hale said in Morge v. Hampshire County Council [2011] UKSC 2, [2011] 1 WLR 268, at [36], '[d]emocratically elected bodies go about their decision-making in a different way from courts. They have professional advisers who investigate and report to them…'. They are politicians from all walks of life, not trained judges or civil servants. As Sullivan LJ said in Siraj, at [14], whereas a minister's decision on appeal is intended to be a 'stand-alone' document which contains a full explanation of the Secretary of State's reasons for allowing or dismissing an appeal, a local planning authority's reasons for granting planning permission by their very nature do not present a full account of the local planning authority's decision making process, in which the planning officer's report is a crucial part. It is expected that the report will form the background to the reasons. I also consider it would be unduly onerous to impose a duty to give detailed reasons, as proposed by the Claimant, given the volume of applications which have to be processed.
89. For these reasons, I consider that where a local authority planning committee gives reasons for a grant of planning permission it need only summarise the main reasons for the decision and can do so briefly. The committee is not required to set out each step in its reasoning, nor indicate which factual matters were accepted or rejected…"
"54. It was the Planning Committee's duty to exercise their own judgment on the application. In doing so, they were of course entitled to come to a different conclusion from that of the officer. However, they could not do so without, in their summary reasons, (i) indicating that they had correctly identified, understood and applied the relevant policies, notably paragraphs 115-116 of the NPPF; and (ii) explaining, if but briefly, why they had come to the conclusion they had, and thus why they considered the officer's conclusion wrong."
Where the Planning Committee is disposed to disagree with the Council's officers – especially in an AONB case – it must ("if but briefly") engage with the officers' reasoning.
REASONS – WAS THERE A BREACH OF DUTY?
Viability: Smiths Gore and BNP Paribas
Harm to the AONB
"The applicant refers to woodland planting being introduced to the west of FL-B to part screen this area. Even with a substantial increase in the area of planting however, the change in levels east of any planting would mean that, over time, screening would still be largely ineffective."
Mr Westaway also referred to a passage concerning screening in a document from his clients, which I need not cite. The upshot is that if the Committee believed that screening would make a substantial difference to the harm to the AONB threatened by the proposed development (as described by the officers), that view is fragile at best and would have to be supported by reasoning a good deal more substantial than the sentence in the minutes.
CONCLUSION
Lord Justice Simon:
"It is plain from the minutes already cited that the majority of councillors concluded that the reduction proposed by the planning officers would jeopardise the scheme and so put at risk the benefits which they were anxious to secure for Dover. It is necessarily implicit in that reasoning that although they assessed the extent to which the detrimental effects on the environment and landscape could be moderated, they concluded that the proposal for moderation advanced by the planning officers would jeopardise the scheme and so could not be accepted. Accordingly, they voted to reject that advice and approve the scheme at the original density. In doing so, they fulfilled the obligation of the authority to make the assessment required by paragraph 116 of the National Planning Policy Framework (emphasis added)."