Purpose

To seek approval from the
Executive to enter an Inter Authority Agreement to deliver Local Nutrient
Mitigation Fund projects.

 

The Inter Authority Agreement
will help facilitate sustainable growth within the Borough, by enabling developers
to purchase the mitigation required to achieve nutrient neutrality and, at a
later point in time, Biodiversity Net Gain units.

 

The Agreement is designed to mitigate
the risk to the Lead Authority and provide a fair mechanism to cover the
benefits and liabilities arising from the funds across the PfSH and catchment
areas.

 

In 2019, Natural England issued
advice to Fareham Borough Council (along with most other authorities in South
Hampshire), in respect of all new overnight accommodation (e.g
houses, hotels, care homes).  The advice
highlighted the detrimental impacts of increased levels of nutrients derived
from development upon Special Protection Areas, Special Areas of Conservation and
RAMSAR sites within The Solent (often referred to as Habitat Sites) and the
need to mitigate these impacts.

 

Following this advice during 2019
and 2020, whilst the Council was seeking to identify a solution, the Council
was only able to issue very few planning permissions for developments containing
overnight accommodation as when deciding planning applications, the Council has
a legal duty to consider whether any impacts from new development are likely to
have a significant effect upon Habitat Sites. 
Where the is no evidence that an impact can be mitigated, a permission
cannot be issued.

 

The agreed solution found was
based on an offsetting approach.  It was
agreed that where proposals could demonstrate that an equivalent amount of
nutrients could be prevented from the entering Habitats Sites elsewhere, then a
development could be approved subject to a planning condition requiring the
developer to demonstrate how the mitigation measure has been identified and
agreed.

 

This approach has resulted in a
system of mitigation in the form of ‘credits’. 
The corresponding number of credits, equivalent to the impact of the
development, are purchased from a third-party supplier prior to the occupation
of the development. Such third-party mitigation schemes take the form of land
being removed from agricultural use, and the land being used for alternative
uses that limit nitrates entering the ground, including re-wilding and tree
planting.  This Council has presently identified
three such schemes, (two on the Isle of Wight and one in the Winchester
District) which can be used to mitigate the impact of nutrients arising from
developments in Fareham.

 

The Natural England advice
affects local authorities in the Partnership for South Hampshire (PfSH)
area.  In May 2023 Fareham Borough
Council on behalf of PfSH provided an expression of interest to government for
funding to provide local authority led nutrient mitigation solutions across The
Solent.  Funding of £9.6 million, was
awarded from the Ministry of Housing, Communities and Local Government (MHCLG)
in January 2024 to facilitate the delivery of nutrient mitigation across the
Solent sub-region, this funding being referred to as the Local Nutrient
Mitigation Fund (LNMF). Fareham Borough Council was identified as the Lead
Authority in respect of the fund and signed a Memorandum of Understanding (MOU)
associated with the requirements of the funding.

 

To manage the relationship
between the Lead Authority and the projects being delivered by the LNMF, an
inter Authority Agreement (IAA) has been created to facilitate the partnership
approach, manage and mitigate risks and ensure that shared benefits and
responsibilities are able to be realised by authorities party to the agreement.

 

To be able to benefit from the
LNMF projects, PfSH authorities are required to enter the Inter Authority
Agreement.  This report explains the principles
and responsibilities stipulated by the IAA and seeks authority from the
Executive to enter it on behalf of the Council.

 

Decision

RESOLVED that the Executive:

 

(a)  notes
the principles of the Inter Authority Agreement;

 

(b)  agrees
that the Director of Planning and Regeneration , following consultation with
the Council’s Section 151 Officer and Executive Member for Planning and Development,
is delegated to agree to final terms to the Inter Authority Agreement as may be
agreed between the parties and once finalised, to enter the Inter Authority
Agreement on behalf of the Council as Local Planning Authority;

 

(c)  agrees
that the Director of Planning and Regeneration is delegated to agree to the
Council being a Benefitting Authority and/or Monitoring Authority for projects delivered
through the Inter Authority Agreement following consultation with the Council’s
Section 151 Officer and Executive Member for Planning and Development. This
postholder will be the “Authorised Officer” acting on behalf of the Council as
Local Planning Authority under the Inter Authority Agreement;

 

(d)  notes
the role and responsibility for Fareham Borough Council as Lead Authority, and
the mitigations in place to manage potential risks; and

 

(e)  notes
the role and responsibility for Fareham Borough Council as Host Authority in
relation to the Land at Stubbington project, and the mitigations in place to
manage potential risks.