Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: Yes

Date of Decision: May 21, 2025

Purpose:

Content: RESOLVED   i)               To adopt the Sussex North Offsetting Water Scheme (SNOWS) as outlined in this report for developments in the Horsham District; and   ii)              To approve the charging schedule for SNOWS as outlined in this report.     REASONS   i)               To enable the implementation of SNOWS and enable development and growth in the Sussex North Water Resource Zone to proceed.   ii)              To ensure that the costs incurred to Horsham District Council can be recovered.     ALTERNATIVE OPTIONS CONSIDERED BUT REJECTED AS IDENTIFIED IN THE REPORT   i)      Other funding approaches to SNOWS have been considered as follows:   •       An increased SNOWS access charge to allow the development and implementation of an additional offsetting above the baseline savings from Southern Water. However, the current evidence available suggests that SNOWS will not need to provide separate, additional offsetting for at least the next three financial years. Whilst this will need to be kept under review, additional costs over and above what has been identified as necessary would prevent the scheme operating on a cost recovery basis.   •       Charging a lower SNOWS access charge was also considered, but this would be unlikely to generate sufficient income to cover the costs of operating the scheme and would place a financial burden on Horsham District Council. This option was therefore discounted.   ii)     It was also considered as to whether any charge would be appropriate. It was concluded that without SNOWS charging planning applicants an access charge, the scheme would be reliant on other sources of funding – either subsidies from Local Planning Authorities (LPAs) or government, none of which are available at the current time, or would have any long-term certainty. This would ultimately jeopardise the launch of SNOWS and the delivery of development across Sussex North. Without such a scheme in place, development delivery will continue to be depressed for the foreseeable future.   iii)    Consideration was also given as to whether SNOWS could operate as a ‘Special Purpose Vehicle’ (SPV) (i.e. a separate company), which could allow for SNOWS to make a profit from services rendered. However, following discussions with Horsham District Council and the other partner local authorities, it was agreed that SNOWS was not intended to be a profit-making entity and the potential risks with setting up SNOWS as an SPV were considered to be too great compared to operating on a cost-recovery basis under existing legislation.   iv)    Not developing SNOWS was discounted on the basis that the affected Local Authorities needed to work together to source a solution to enable development to proceed.