Agenda Document Pack - Environment, Infrastructure and Economic Development Committee - 31/05/2023
Perth and Kinross Council · 31 May 2023
Back to Environment, Infrastructure and Economic Development Committee — 31 May 2023 and its agenda
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Securing the future… • Improving services • Enhancing quality of life • Making the best use of public resources Council Building 2 High Street Perth PH1 5PH 24/05/2023 A hybrid meeting of the Environment, Infrastructure and Economic Development Committee will be held in the Council Chamber on Wednesday, 31 May 2023 at 09:30. If you have any queries please contact Committee Services on (01738) 475000 or email Committee@pkc.gov.uk. THOMAS GLEN Chief Executive Those attending the meeting are requested to ensure that all notifications are silent on their device and other devices are in silent mode. Please note that the meeting will be broadcast online and recorded. The recording will be publicly available on the Council’s website following the meeting. Members: Depute Provost Andrew Parrott (Convener) Bailie Mike Williamson (Vice-Convener) Councillor Keith Allan Bailie Alasdair Bailey Councillor Steven Carr Councillor John Duff Councillor Angus Forbes Councillor Ken Harvey Councillor Noah Khogali Bailie Claire McLaren Councillor Willie Robertson Councillor Frank Smith Councillor Colin Stewart Councillor Richard Watters Councillor Jack Welch Page 1 of 222
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Environment, Infrastructure and Economic Development Committee Wednesday, 31 May 2023 AGENDA MEMBERS ARE REMINDED OF THEIR OBLIGATION TO DECLARE ANY FINANCIAL OR NON-FINANCIAL INTEREST WHICH THEY MAY HAVE IN ANY ITEM ON THIS AGENDA IN ACCORDANCE WITH THE COUNCILLORS’ CODE OF CONDUCT. 1 WELCOME AND APOLOGIES 2 DECLARATIONS OF INTEREST 3 MINUTE OF MEETING OF ENVIRONMENT, INFRASTRUCTURE AND ECONOMIC DEVELOPMENT COMMITTEE OF 29 MARCH 2023 FOR APPROVAL (copy herewith) 5 - 8 4 OUTSTANDING BUSINESS STATEMENT (OBS) (copy herewith 23/169) 9 - 10 5 DEVELOPER CONTRIBUTIONS AND AFFORDABLE HOUSING SUPPLEMENTARY GUIDANCE UPDATES Report by Head of Planning and Development (copy herewith 23/170) 11 - 64 6 COMMUNITIES SERVICE ANNUAL PERFORMANCE REPORT 2022/23 Report by Executive Director (Communities) (copy herewith 23/168) 65 - 102 7 SHORT TERM LET CONTROL AREA : PROPOSALS FOR CONSULTATION Report by Head of Planning and Development (copy herewith 23/171) 103 - 142 8 PERTH CITY OF LIGHT ACTION PLAN UPDATE 2023 Report by Head of Planning and Development (copy herewith 23/172) 143 - 222 Page 3 of 222
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ENVIRONMENT, INFRASTRUCTURE AND ECONOMIC DEVELOPMENT COMMITTEE Minute of hybrid meeting of the Environment, Infrastructure and Economic Development Committee held in the Council Chambers on Wednesday 29 March 2023 at 9.30am. Present: Bailies A Bailey, C McLaren and M Williamson, Councillors K Allan, S Carr, J Duff (from Item 4 onwards), S Donaldson (substituting for Councillor K Harvey), A Forbes, N Khogali, I Massie (substituting for Councillor R Watters), A Parrott, W Robertson, F Smith, C Stewart, and J Welch. In Attendance: B Renton, Executive Director (Communities); D Littlejohn, M Butterworth, S Best, B Cargill, C Leishman, J Watson, E Williamson, R Wills, B Wilson (from Item 4 onwards) (all Communities); S Hendry, A Taylor, M Pasternak and R Ramsay (all Corporate and Democratic Services). Apologies for Absence: Councillors K Harvey and R Watters. Councillor A Parrott, Convener, Presiding. 1. WELCOME AND APOLOGIES Councillor A Parrott welcomed everyone to the meeting. Apologies for absence and substitutions were noted as above. 2. DECLARATIONS OF INTEREST There were no Declarations of Interest made in terms of the Councillors’ Code of Conduct. 3. MINUTE OF PREVIOUS MEETINGS (i) Minute of Meeting of the Environment, Infrastructure and Economic Development Committee of 16 November 2022 The minute of the meeting of the Environment, Infrastructure and Economic Development Committee of 16 November 2022 was submitted and approved as a correct record. (ii) Minute of Special Meeting of the Environment, Infrastructure and Economic Development Committee of 6 March 2023 The minute of the special meeting of the Environment, Infrastructure and Economic Development Committee of 6 March 2023 was submitted, approved as a correct record and authorised for signature. 3 Page 5 of 222
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4. MOTION Re-Assessment of Conservation Areas in Perth and Kinross Motion (Councillors N Khogali and A Forbes) To move that the Environment, Infrastructure and Economic Development Committee be asked to consider the issue of Conservation Areas and commit the Council to an ongoing re-assessment of these areas in Perth and Kinross, with a recommendation from this Committee that there be a minimum of 4 reviews per year and using an approach that both protects areas of historical and architectural significance, but is also fit for purpose in line with Council commitments regarding Climate Change and Sustainability. To acknowledge that local authorities are unable to amend regulations regarding what development is permitted within a Conservation Area without planning permission and ask the Convener of this Committee to write to the relevant Scottish Government minister requesting that a review into permitted development rights within Conservation Areas is undertaken with the utmost urgency. Resolved: In accordance with the Motion. 4. OUTSTANDING BUSINESS STATEMENTS (OBS) Resolved: The Outstanding Business Statement be noted and updated accordingly. 5. ACTIVE TRAVEL STRATEGY - CYCLING, WALKING AND SAFER ROUTES (CWSR) PROJECTS 2023/24 There was submitted a report by Head of Environmental and Consumer Services (23/103) (1) detailing the Cycling, Walking and Safer Routes (CWSR) projects implemented in 2022/23, and (2) seeking approval of the proposed list of Cycling, Walking and Safer Routes projects for 2023/24. Resolved: (i) The schemes implemented from the Cycling, Walking and Safer Routes Grant Funding in 2022/23 as detailed at Appendix 1 of Report 23/103, be noted (ii) The list of works for Cycling, Walking and Safer Routes projects for the financial year 2023/24 as detailed in Appendix 2 of Report 23/103, be approved. 7. GYPSY/TRAVELLER SITES STANDARDS GUIDANCE NOTE There was submitted a report by Head of Planning and Development (23/104) (1) summarising the background and development of non-statutory planning guidance and the comments received during the formal consultation carried out in Page 6 of 222
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2022; and (2) seeking approval to finalise and adopt the guidance to support the Local Development Plan (adopted November 2019) as non-statutory guidance. Resolved: The Gypsy/Traveller Site Standards Guidance Note to support the implementation of Policy 21 of the Local Development Plan, be approved. THERE FOLLOWED A SHORT RECESS AND THE MEETING RECONVENED AT 11.04AM. 8. MOBILITY STRATEGY MAIN ISSUES REPORT There was submitted a report by Head of Planning and Development (23/105) seeking approval of the Mobility Strategy Main Issues Report for use towards early- stage consultation. Resolved: (i) The contents of the Mobility Strategy Main Issues Report as detailed in Appendix 1 to Report 23/105, along with the Mobility Strategy project plan, be approved. (ii) It be noted that feedback from the Main Issues Report and Big Place Conversation will be collated, summarised, and presented within the draft Mobility Strategy for approval in 2024. 9. WASTE MANAGEMENT PLAN 2010-2025 - PROGRESS REPORT There was submitted a report by Head of Environmental and Consumer Services (23/106) (1) providing an update on progress with the Perth and Kinross Council Waste Management Action Plan and giving an overview of the national policy and legislative position; and (2) seeking approval of six new actions (115-120). Resolved: (i) The annual update on progress on the Waste Management Action Plan, be scrutinised (ii) The six new actions (115-120) as detailed in Appendix 1 to Report 23/106, be approved (iii) It be noted that the current Waste Management Plan will be reviewed in 2023/24 as per action 116. ~~~~~~~ Page 7 of 222
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ENVIRONMENT, INFRASTRUCTURE AND ECONOMIC DEVELOPMENT COMMITTEE OUTSTANDING BUSINESS STATEMENT (OBS) (23/168) Please note that this statement sets out outstanding decisions of this committee along with an update and estimated completion date. Actions which are overdue are shaded for ease of reference. Where an update reflects that an action is complete then the Committee’s agreement will be sought to its removal from the OBS. No Minute Reference Subject Title Outstanding Action Update Lead Officer /Service Action Due / Complete Action Expected 9. 29 March 2023 Item 8 Mobility Strategy Main Issues Report Provide Members with further information on the current situation with regards the bus service in Invergowrie. Comprehensive update provided to Local Members at a Road Safety Projects Meeting on 11 April advising that work was continuing with the TRO for waiting restrictions at the Dargie Road/Noble Avenue junction. Where removing the on-street parking would provide additional road space so the bus operators could negotiate the bend and service the residential streets, as well as being able to travel along Noble Avenue towards Station Road and the train station. Brian Cargill COMPLETE 31 May 2023 4 Page 9 of 222
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No Minute Reference Subject Title Outstanding Action Update Lead Officer /Service Action Due / Complete Action Expected 10. 29 March 2023 Item 9 Waste Management Plan 2010-2025 A Briefing Note be issued to Members on the Deposit Return Scheme detailing any engagement that has been carried out with local businesses. Verbal update to be provided to Committee on 31 May 2023. Mark Butterworth NOT COMPLETE 31 May 2023 Page 10 of 222
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PERTH AND KINROSS COUNCIL Environment, infrastructure & Economic Development Committee 31 May 2023 DEVELOPER CONTRIBUTIONS AND AFFORDABLE HOUSING SUPPLEMENTARY GUIDANCE UPDATES Report by Head of Planning and Development (Report No. 23/170) 1. PURPOSE 1.1 This report presents proposed updates to the Developer Contributions and Affordable Housing Supplementary Guidance (2020) (DC&AH SG). 1.2 The DC&AH SG is required to support Policy 5 (Infrastructure Contributions) and Policy 20 (Affordable Housing) of the adopted Local Development Plan 2 (2019) (LDP2). The DC&AH SG was approved by the Council’s Strategic Policy and Resources Committee on 29 January 2020 (Report No. 20/25), and subsequently approved by Scottish Ministers and adopted as statutory supplementary guidance. 1.3 There is a need to update various aspects of the guidance as a monitoring action; and importantly to revise contribution rates in line with construction inflation. The updates that are proposed for the DC&AH SG shall remain within the existing policy framework of the adopted LDP2, and this is important. New contributions methodologies are therefore not currently being proposed for inclusion. 1.4 A copy of the draft guidance document is appended to this report (Appendix 1). 2. RECOMMENDATIONS 2.1 It is recommended that Committee: i) notes that the paper was discussed and supported by the Affordable Housing Member Officer Working Group ii) approves the recommended updates to the Developer Contributions and Affordable Housing Supplementary Guidance to initiate a period of public consultation in June 2023; (iii) agrees to a report made back to this Committee on the outcomes of proposed public consultation, with any further changes to the Supplementary Guidance, prior to submission to Scottish Ministers for adoption. 5 Page 11 of 222
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3. STRUCTURE OF REPORT 3.1 This report is structured over the following sections: • Section 4: Background/ Main Issues • Section 5: Proposals • Section 6: Conclusion • Appendices 4. BACKGROUND / MAIN ISSUES 4.1 The Developer Contributions and Affordable Housing Supplementary Guidance (2020) (DC&AH SG) includes the legal and policy background for developer contributions to mitigate the impact of consented new development and details the Council’s Affordable Housing requirement. It provides guidance relating to developer contributions for Primary Education, the Auchterarder A9 Junction Improvements, and Transport Infrastructure around Perth. 4.2 Developer contributions can either be physical delivery on site or through a financial payment. Developer contributions will only be sought where they meet the tests of Scottish Government Circular 3/2012: Planning Obligations and Good Neighbour Agreements. In order to support the LDP2 policy implementation, the Council developed this statutory Supplementary Guidance which is now being reviewed and is the subject of this report. The following is an example of how a development proposal may be assessed for developer contributions and affordable housing. Table 1: Example of developer contribution calculation Proposed Development Affordable Housing Primary Education* Transport Infrastructure* Provision Location 8 dwellinghouses Minimum 2 units: to be determined preferably onsite but offsite if deemed desirable Onsite 6 dwellings 6 dwellings at full rate, 2 dwellings at reduced rate Offsite/ Commuted Sum 8 dwellings 8 dwellings at full rate * Assumes the proposed development is in a location which qualifies for assessment of these developer contributions. Notes: Affordable housing commuted sums are in place only to facilitate the delivery of affordable housing, in lieu of onsite delivery. Where required, primary education and/or transport infrastructure contributions would therefore still apply. Page 12 of 222
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4.3 The current version of the DC&AH SG was approved by the Council’s Strategic Policy and Resources Committee on 29 January 2020 (Report No. 20/25) and it is the view of officers that there is a now a need to update the guidance, particularly to reflect construction inflation. 4.4 The project team working on the updates to the DC&AH SG comprises officers from the Development Plans and Housing Strategy teams within Planning & Development. 4.5 The paper was discussed and supported by the Council’s Affordable Housing Member Officer Working Group. 4.6 Subject to Committee approval, the intention is to undertake public consultation prior to submitting the revised guidance to Scottish Ministers for approval, which is necessary in order to retain ‘statutory’ status. If approved, the proposed changes would then take effect legally. 4.7 In summary, the key modifications to the current adopted Developer Contributions and Affordable Housing Supplementary Guidance being proposed are: • Presentation of the guidance document in two sections: Developer Contributions and Affordable Housing • Relevant updates to the Affordable Housing section, as listed from section 5.6 of this report • Revised Affordable Housing Commuted Sum rates, Primary Education, and Transport Infrastructure rates in line with inflation/ project costs • Provision to allow for the Primary Education and Transport Infrastructure rates to be revised routinely in line with inflation/ project costs without the need for further formality • Updated Appendix 1 of the existing guidance, detailing the list of relevant primary schools • Rewording of “Principles of guidance” section of the existing document relating to Auchterarder A9 Junction Improvements • Insertion of paragraph in the Transport Infrastructure section of the guidance, relating to Site MU70 (Perth West) infrastructure costs. 5. PROPOSALS 5.1 Best value is continuous improvement in the performance of the local authority’s functions. This review ensures the Developer Contributions and Affordable Housing Supplementary Guidance (2020) (DC&AH SG) remains up-to-date and secures best value. Affordable Housing 5.2 The proposed DC&AH SG update was discussed at a meeting of the Affordable Housing Member Officer Working Group. Feedback relating to the implementation of the Affordable Housing policy and supplementary guidance, Page 13 of 222
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received from officers and Elected Members, has been used to inform the updates to the DC&AH SG. 5.3 One area of feedback focused on opportunities to more effectively highlight the Affordable Housing guidance, when used by officers and customers of the planning service. Therefore, the first key update to the DC&AH SG is the physical presentation of the document. Presently, both sections (Developer Contributions and Affordable Housing) are contained within the same document. It is now proposed that the DC&AH SG will be published in two sections (‘Part 1: Developer Contributions’ and ‘Part 2: Affordable Housing’) in order to improve the accessibility of the guidance on Affordable Housing and emphasise the purpose of the guidance in its own right; not as a subsection of Developer Contributions. 5.4 The DC&AH SG provides information on the delivery of the affordable housing obligation as set out in LDP2 Policy 20: Affordable Housing. With growing focus on how to deliver a wider range of affordable homes as directed by the recently approved Local Housing Strategy 2022-27 (LHS), a review of the guidance has been undertaken to reflect current Scottish Government policy, including National Planning Framework 4 (NPF4), which became effective from 13 February 2023, and now forms part of the statutory development plan. Findings from the Housing Needs and Demands Assessment (HNDA), which informs the LHS, were reported to the Council’s Housing and Social Wellbeing Committee on 15 March 2023 (Report No. 23/82). 5.5 A greater emphasis is now placed on the sequential approach for the delivery of affordable housing. This, in turn, aims to remove the perception that the affordable housing obligation can automatically be met through a financial commitment rather than onsite provision. It will clarify what type of provision is best suited to a particular development proposal in order to meet policy requirements. These changes will help implement Local Housing Strategy actions to support an increase in overall new build affordable housing delivery, including rural sites. 5.6 The following changes are proposed to the affordable housing guidance. Please also refer to Appendix 1, Part 2, of this report: 5.6.1 The guidance has been restructured and updated in terms of its references to Scottish Government and PKC policies. This aims to create a more fluid document that provides an overview of what affordable housing is and how the policy should be implemented. 5.6.2 The section of the existing DC&AH SG relating to the ‘Affordable Housing Credit System’ has been removed. This approach allowed housebuilders to group sites, provided the overall 25% affordable housing requirement was ultimately met across a number of sites. However, it has not been well utilised and has proven difficult to implement and monitor. It was also found to undermine the sequential approach to the delivery of affordable housing. Any confirmed Credits currently agreed with developers will continue to be valid until their expiry dates, but no further Credits shall be awarded. Page 14 of 222
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5.6.3 Part 2, page 7, includes the circumstances in which payment of a commuted sum may be acceptable in lieu of on-site delivery; the point relating to high concentrations of existing affordable housing has been deleted from this list. 5.6.4 Insertion of section (Part 2, page 8, of the draft guidance) highlighting the five- year utilisation period for commuted sum payments, moved from ‘Part 1’. 5.6.5 The calculation of commuted sums has been reviewed by the District Valuer as of January 2023 to reflect the most recent plot values by Housing Market Area (Part 2, page 8 of the draft guidance). The guidance currently allows for commuted sum rates to be routinely updated to reflect inflation and housing markets without further formality. As advised on the Council’s website, the revised commuted sum rates were effective from 01 April 2023 and are now applied to planning applications validated from that date. The updated DC&AH SG document will contain those latest rates. 5.6.6 A section has been added on the ‘tenure blind’ approach to provide more clarity on what this means for a development (Part 2, page 10, of the draft guidance). The aim of this section is to ensure that affordable housing is considered at the very beginning of the design process andcomplements the market housing, contributing to a mixed community and integration within the development. 5.6.7 The percentage in terms of households living in private rental accommodation has been updated to reflect the most current national data (Part 2, page 11, of the draft guidance). 5.6.8 The average house prices for the PKC area have been updated to reflect the most recent averages and highlight the significant increase in house sale value compared to other Tayside partners (Part 2, page 12, of the draft guidance). Primary Education 5.7 The main update to the Primary Education section of the DC&AH SG is the uplift in the contribution rate, presently £5,164. This rate is applied to new Open Market dwellinghouses proposed within primary school catchments that demonstrate a ‘capacity issue’. A capacity issue is defined in the guidance as being “where a primary school has been operating at over 80% for 5 out of the previous 7 years and is likely to be operating following completion of the proposed development, extant planning permissions and Local Development Plan allocations, at or above 100% of total capacity”. It is proposed that, to better reflect current industry costs, Building Cost Information Service (BCIS) General Build Cost Indexation will be applied for the period since the rate was previously approved by the Council (January 2020) as follows: Page 15 of 222
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Table 2: Change in Primary Education contribution rate Primary Education Contribution Current (2020) Rate Proposed (2023) Rate Difference Per Open Market Dwelling £5,164 £6,300 +£1,136 5.8 The list of schools that qualify as having a capacity issue, contained within Part 1, Appendix 1, of the DC&AH SG is also updated in consultation with Education & Children’s Services. The guidance currently includes provision to allow this update to be made annually without the need for further formal procedure. It is proposed that similar provision be included in the updated guidance to allow the contribution rate to also be refreshed in a similar way to include any uplift resulting from inflation without need for further formal procedure. Auchterarder A9 Junction Improvements 5.9 The Auchterarder A9 Junction Improvements section of the DC&AH SG sets out the basis in which Perth & Kinross Council will seek to ensure contributions from developments within the Auchterarder and wider Strathearn housing market area towards meeting the cost of delivering the A9 Junction Improvements that are required in the interests of road safety. The zone for which these contributions are sought is shown in Part 1, Appendix 2, of the draft guidance. 5.10 The circumstances in which a development proposal is assessed for a contribution requirement is set out from Part 1, page 12, of the draft guidance. It is proposed that the wording is amended for non-residential development proposals. Presently, the guidance will only be applied to proposals that require a Transport Assessment. The proposed change in wording will enable non-residential development proposals that result in an increased trip generation equal to or higher than a dwellinghouse to be considered on a case-by-case basis. Transport Infrastructure 5.11 The Transport Infrastructure section of Part 1 of the draft guidance sets out the basis in which Perth and Kinross Council will seek contributions from developments in and around Perth towards the cost of delivering the transport infrastructure improvements which are required for the release of all development sites and to support the growth of Perth and Kinross. The (a / b) x c ‘a’ means the Index for the month March 2023, the month which precedes the date of this report (440.0) ‘b’ means the Index for the month of January 2020, the month in which the DC&AH SG was approved (359.8) ‘c’ means the sum to be indexed (£5,164) 1.22 x £5,164 = £6,300 Page 16 of 222
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Council seeks contributions for the Perth Transport Futures projects A9/A85 Crieff Road junction improvements and the Cross Tay Link Road (CTLR). The developer contribution rates are calculated on the basis of these project costs. Revised project costs for the CTLR were reported to Finance & Resources Committee on 07 September 2022 at a sum of £150,469,000. This updated project cost will now form the basis of the Transport Infrastructure contribution rates. 5.12 Traffic modelling undertaken for the preparation of LDP2 identified that 50% of future traffic growth is associated with new development sites contained in the LDP. The contribution level is therefore calculated on the basis of 50% of the total project costs (identified above) and the remainder being sought through other mechanisms. The ‘Full’ Contribution Area rate applies to all development which is defined by settlements in this area having more than a 19% impact on the transport infrastructure. The ‘Reduced’ Contribution Area rate applies to development in this area having a 12%-19% impact on the transport infrastructure. The ‘Full’ and ‘Reduced’ Areas are shown on the map at Appendix 3 of the guidance. Only the contribution rates, as a result of updated project costs, is proposed for change. The contribution areas will remain as existing. 5.13 It is proposed that, as with 5.8 of this report with regards to primary education, similar provision be included in the revised guidance to allow the transport contribution rate to be updated on the basis of reported project costs in a similar way, as required, without need for further formal procedure. 5.14 The updated contribution rates are as follows, with comparative change from the current adopted rate. All sums are rounded to the nearest whole pound.: Table 3: Full Contribution Area Land Use CTLR A9/A85 New Total Current Total Change Retail (m²) £139 £46 £185 £154 +£31 Employment ( m²) £13 £4 £17 £14 +£3 Other Non- Residential (m ²) £43 £14 £57 £48 +£9 Residential Open Market (per unit) £3,288 £1,079 £4,367 £3,657 +£710 Residential Affordable (per unit) £1,644 £540 £2,184 £1,828 +£356 Page 17 of 222
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Table 4: Reduced Contribution Area Land Use CTLR A9/A85 New Total Current Total Change Retail (m²) £104 £34 £138 £115 +£23 Employment (m²) £10 £3 £13 £10 +£3 Other Non- Residential (m²) £33 £11 £44 £35 +£9 Residential Open Market (per unit) £2,466 £810 £3,276 £2,742 +£534 Residential Affordable (per unit) £1,233 £405 £1,638 £1,370 +£268 5.15 Insertion of a new paragraph is also proposed in this section of the guidance relating to LDP2 Site MU70 (Perth West). The following shall be inserted in Part 1, page 14, of the draft guidance after paragraph 6.4: “Following appropriate assessment, proportionate contributions or mitigation will be sought toward the infrastructure to be delivered at LDP2 Site MU70 (Perth West), including an A9 underpass to address site severance. Early discussions are recommended to establish specific requirements from landowners/developers within MU70.” Next Steps 5.16 The proposed next stage for the DC&AH SG is a period of statutory public consultation, following the presentation of this report, from June 2023. This will be carried out via online consultation, using Consultation Hub. It is anticipated that, as the consultation will coincide with the summer holiday period, the consultation will run for a minimum of 8 weeks. Corporate social media channels will also be used to promote the consultation as appropriate. 5.17 Following the period of public consultation, the responses will be collated and reviewed by the project team. The updated guidance will then be brought back to Committee for approval prior to submission to Scottish Ministers for formal adoption. CONCLUSION 6.1 This report provides an overview of the key updates and clarifications being made to the currently adopted Developer Contributions and Affordable Housing Supplementary Guidance. 6.2 The guidance is to remain within the policy framework of the adopted statutory Local Development Plan 2 (2019), with future policy changes being Page 18 of 222
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considered as part of the Council’s development plan review for “Local Development Plan 3”. 6.3 It is recommended that the Committee agree these proposed changes and approve the draft DC&AH SG (Appendix 1 of this report) as the basis for a period of public consultation. Author Name Designation Contact Details Lucy Sumner Development Contributions Officer (01738) 475000 ComCommitteeReports@pkc.gov.uk Approved Name Designation Date Barbara Renton Executive Director (Communities) 23 May 2023 APPENDICES • Appendix 1 – Draft Developer Contributions and Affordable Housing Supplementary Guidance (Parts 1 and 2) Page 19 of 222
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ANNEX 1. IMPLICATIONS, ASSESSMENTS, CONSULTATION AND COMMUNICATION Strategic Implications Yes / None Community Plan / Single Outcome Agreement Yes Corporate Plan Yes Resource Implications Financial Yes Workforce No Asset Management (land, property, IST) No Assessments Equality Impact Assessment No Strategic Environmental Assessment No Sustainability (community, economic, environmental) Yes Legal and Governance Yes Risk No Consultation Internal Yes External Yes - required Communication Communications Plan No The Impact & Value Assessment (IVA) has been designed to screen every Council project, strategy or proposal against statutory and non-statutory environmental, social and economic requirements. It has replaced the previous existing Integrated Appraisal Toolkit (IAT). DC&AH SG updates - Committee Annex Checklist DC&AH SG updates - Impact Assessments DC&AH SG updates - Strategic & Resource Implications 1. Strategic Implications Community Plan/Single Outcome Agreement 1.1 This report supports the following priorities within the Community Plan 2022- 27: (i) Mental and physical wellbeing (ii) Skills, learning and development Page 20 of 222
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Corporate Plan 1.2 This report supports the objectives within the draft new Corporate Plan: (i) Children and young people grow up safe, respected, well-educated, and confident in their ability to realise their full potential; (ii) People and businesses are increasingly able to prosper in a local economy which support low carbon ambitions and offers opportunities for all; (iii) People can achieve their best physical and mental health and have access to quality care and support when they need it; (iv) Communities are resilient and physically, digital and socially connected; (v) Perth and Kinross is a safe and vibrant place, mitigating the impact of climate and environmental change for this and future generations. 2. Resource Implications Financial 2.1 The subject of this report does not introduce new commitments for revenue or capital funding. The subject of this report does not require revenue or capital funding. Any income ingathered via payment of developer contributions and affordable housing commuted sums is a financial consideration, however the use of these funds are clearly defined in the relevant Local Development Plan policies, in the supplementary guidance, and in legal agreements, where applicable. 2.2 The Head of Finance must be consulted on all proposals with financial implications. No report with such implications should be presented at a meeting when this has not been done and it should be explicitly stated that the Head of Finance has been consulted, and has indicated agreement with the proposals. Workforce 2.3 There are no workforce implications resulting from this report. The Corporate Human Resources Manager must be consulted on all proposals with workforce implications. No report with such implications should be presented at a meeting when this has not been done and it should be explicitly stated that the Corporate Human Resources Manager has been consulted, and has indicated agreement with the proposals. Asset Management (land, property, IT) 2.4 There are no asset management implications resulting from this report. The Director (Environment) must be consulted on all proposals with land and property implications. No report with such implications should be presented at a meeting when this has not been done and it should be explicitly stated that Page 21 of 222
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the Director (Environment) has been consulted, and has indicated agreement with the proposals. 3. Assessments Equality Impact Assessment 3.1 Under the Equality Act 2010, the Council is required to eliminate discrimination, advance equality of opportunity, and foster good relations between equality groups. Carrying out Equality Impact Assessments for plans and policies allows the Council to demonstrate that it is meeting these duties. The Equality Impact Assessment undertaken in relation to this report can be viewed clicking here. The proposals have been considered under the Corporate Equalities Impact Assessment process (EqIA) and have been assessed as not relevant for the purposes of EqIA. Strategic Environmental Assessment (SEA) 3.2 The Environmental Assessment (Scotland) Act 2005 places a duty on the Council to identify and assess the environmental consequences of its proposals. A Screening Report has been provided to SEA Gateway. It is anticipated that an SEA will not be required. 230130 SEA screening DC&AH SG.docx Sustainability 3.3 Under the provisions of the Local Government in Scotland Act 2003 the Council has to discharge its duties in a way which contributes to the achievement of sustainable development. Under the Climate Change (Scotland) Act 2009 the Council also has a duty relating to climate change and, in exercising its functions must act: • in the way best calculated to delivery of the Act’s emissions reduction targets; • in the way best calculated to deliver any statutory adaptation programmes; and • in a way that it considers most sustainable. The proposals have been assessed against the Council’s Principles for Sustainable Development. Legal and Governance 3.4 The Developer Contributions and Affordable Housing Supplementary Guidance is in place to support the policies contained within Local Development Plan 2 (2019), which forms part of the statutory development plan set by Town and Country Planning (Scotland) Act 1997 (as amended). Page 22 of 222
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3.5 The Supplementary Guidance allows Perth and Kinross Council to enter into legal agreements with applicants/developers to secure the future payment or delivery of the types of contributions set out in the Guidance. It is important to review and update the Supplementary Guidance to ensure legal agreements reflect the appropriate level of and requirements for contributions. The Head of Legal and Governance Services has been consulted on the implications and terms of this report. 3.6 The Head of Legal and Governance must be consulted on all proposals with legal implications. No report with such implications should be presented at a meeting when this has not been done and it should be explicitly stated that the Head of Legal and Governance has been consulted. Risk 3.7 As the proposals outlined in this report represent an update to existing guidance already adopted by the Council, risk has been deemed low. There is an element of reputational risk when conducting public consultation. The proposals have been assessed for any implications within the corporate risk management process, and also the controls required to mitigate those risks. 4. Consultation Internal 4.1 Officers from the following teams/ services have been consulted in the preparation of this report: Legal and Governance, Education and Children’s Services (Recources), Roads Infrastructure, Corporate and Democratic Services (Accountancy), and Planning and Housing Strategy; Development Plans, Housing Strategy and Transportation and Development. External 4.2 This section should detail who has been consulted outwith the Council in the development of the proposals and the preparation of the report, and also the views of the consultees. 5. Communication 5.1 A period of public consultation will be required as part of this proposal which will be undertaken via Consultation Hub. The project team will be contactable mainly via Teams (for internal stakeholders) or email and telephone. Corporate social media channels may be utilised to promote the public consultation, any enquiries would be directed to the project team. Page 23 of 222
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2. BACKGROUND PAPERS 2.1 This section should list the documents that have been relied on in preparing the report, other than those committee reports already referenced within the main body of the report. All documents must be kept available by the author for inspection by the public for four years from the date of the meeting at which the report is presented. Page 24 of 222
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Draft Developer Contributions and Affordable Housing Supplementary Guidance (2023) Part 1: Developer Contributions 5 Page 25 of 222
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2 Contents 1. Introduction 2. Legal and policy background 3 3. Implementation 4 4. Primary Education Requirements 9 5. Auchterarder A9 Junction Improvements 12 6. Transport Infrastructure 13 Contact information 26 Appendices Appendix 1 - Education Requirements 18 Appendix 2 - Auchterarder A9 Junction Improvements Area 20 Appendix 3 - Transport Infrastructure Contribution Area 21 Appendix 4 - Perth City Centre Zone 22 Appendix 5 - Application of the Supplementary Guidance to Planning Applications 23 Appendix 6 - Gross Internal Area Definitions 25 Please see ‘Part 2: Affordable Housing’ for further guidance on affordable housing requirements. Page 26 of 222
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3 1. Introduction 1.1 Across Scotland, local authorities are having difficulty maintaining and developing infrastructure in order to keep up with the pressures of new development. Additional funding sources beyond that of the local authority are required to ensure that infrastructure constraints do not inhibit sustainable economic growth. This has been a particular issue in Perth and Kinross where the population grew by 5.3% in the period 2001- 2007. This growth is set to continue with the National Records of Scotland (NRS) population projections indicating that the Perth and Kinross population will increase by 4.5% (6,788 persons) for the period 2016-2026. This exceeds the national average of 3.2% and is the eighth highest growth projection in Scotland. 1.2 The increasing population has already placed heavy demands on public sector services and infrastructure capacity. If the population is to rise as the NRS projects, this will have an increasing impact on schools, community and leisure facilities, transport infrastructure and health services. It is unlikely that the growth projected for Perth and Kinross will be evenly spread across the Council area, placing an even higher demand for services and infrastructure in some already constrained areas. This will present significant challenges for the Perth & Kinross Council (“the Council”) and its Community Planning partners. 1.3 The sustainable development of Perth and Kinross requires the provision of services in appropriate locations to meet the increasing needs of the expanding population. As a result, new investment in infrastructure will be required to keep pace with the increasing needs of an expanding population. Initial estimates suggest that investment exceeding £300 million at current prices is required in public sector infrastructure over the next 25 years in order to support this future growth. Maintaining current assets already places a heavy burden on the Council’s budgets, leaving limited resources for investment in increasing infrastructure capacity. 1.4 It is neither sustainable nor good planning to wait until capacity is used up and then begin to recognise and address the problem. It will be necessary to analyse current capacity and future demand making the solution the collective responsibility of the Council and developers over the long term. This approach is the most equitable, sharing the cost with all development which places new demand on infrastructure capacity, rather than placing an uneconomic burden on a limited number of developers in later years. 1.5 With the population increase of Perth and Kinross driven by in-migration, largely from other parts of the UK, a partnership approach is required between the Council and developers to ensure infrastructure capacity is not to become a major constraint on new development. 1.6 Such partnerships have traditionally been facilitated through the use of Section 75 Planning Obligations which have become key mechanisms in the planning system for addressing and for mitigating the impact of new development. Although such obligations have been used to address specific issues arising from individual applications, they can also be used as the vehicle for a developer contribution policy which addresses the general issue of infrastructural requirements and seeks to bring about a fairer sharing of Page 27 of 222
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4 infrastructure costs. 1.7 This Guidance concentrates on the delivery of developer contributions to provide a means to secure contributions towards the provision of on-site facilities necessary in the interests of comprehensive planning, and/or, the provision, or improvement of, off-site facilities and infrastructure where existing facilities or infrastructure will be placed under additional pressure. This Guidance also provides advice and information on the application of the affordable housing policy. 1.8 This Guidance should be read in conjunction with Local Development Plan Policy 5: Infrastructure Contributions and Policy 20: Affordable Housing. 1.9 This draft Supplementary Guidance was approved by the Council’s Environment, Infrastructure and Economic Development Committee for a period of public consultation on 31 May 2023. It is proposed that, following that consultation, it will be submitted to Scottish Ministers for consideration. Following the necessary adoption procedures, the Supplementary Guidance will be adopted as statutory supplementary guidance. 2. Legal and Policy Background 2.1 The most widely used legislation for managing developer contributions is Section 75 of the Town & Country Planning (Scotland) Act 1997 (as amended). This section of the act states that: ‘(1) A person may, in respect of land in the district of a planning authority- (a) by agreement with that authority, or (b) unilaterally, Enter into an obligation (referred to in this section and in sections 75A to 75C as a “planning obligation”) restricting or regulating the development or use of the land, either permanently or during such period as may be specified in the instrument by which the obligation is entered into (referred to in this section and in those sections as the “relevant instrument”).’ 2.2 The most recent Government advice on the use of Planning Obligations is contained in Circular 3/2012: Planning Obligations and Good Neighbour Agreements. Section 75 Planning Obligations enable local authorities to: ● regulate the sequence of development proposals; ● achieve off-site infrastructure provision; ● control the use of land or the nature of an activity carried out thereon; ● secure the provision of affordable housing; ● obtain financial contributions towards services or facilities. 2.3 In regard to financial contributions, Government advice states that: “… contributions towards public transport or community facilities may be acceptable provided the requirements are directly related to the development proposal and the need for them arises from its implementation.” 2.4 It is a legitimate planning objective to utilise Section 75 Planning Obligations to achieve contributions towards the provision of services and facilities within Page 28 of 222
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5 Perth and Kinross. However, current guidance makes it clear that Obligations should only be sought where they are required to make a proposal acceptable in land use planning terms and that the use of a planning condition is not appropriate. Planning Conditions, including suspensive conditions, will be used wherever possible. 2.5 Planning Obligations will only be sought where they meet all of the tests of Circular 3/2012: Planning Obligations and Good Neighbour Agreements: • necessary to make the proposed development acceptable in planning terms; • serve a planning purpose and, where it is possible to identify infrastructure provision requirements in advance, should be relative to development plans; • relate to the proposed development either as a direct consequence of the development or arising from the cumulative impact of development in the area; • fairly and reasonably relate in scale and kind to the proposed development; • reasonable in all other respects. 2.6 Affordable Housing 2.7 The latest research by Perth & Kinross Council reinforces there is a continuing need for affordable housing with significant and ongoing levels of unmet affordable housing needs existing across Perth and Kinross, particularly in the Greater Perth Housing Market Area (HMA). 2.8 Affordable Housing guidance is now set out in Part 2 of this document, to be read in conjunction with this Developer Contributions (Part 1) guidance. 3. Applying the Guidance 3.1 The Supplementary Guidance is intended to provide developers in Perth and Kinross with greater certainty of the contributions and affordable housing requirement that will be sought in conjunction with planning applications. It will also provide a more transparent, streamlined, practical, consistent, and accountable approach to the negotiation of developer contributions and affordable housing delivery. On a case by case, basis contributions may be required from new development toward other areas of infrastructure, such as green infrastructure or community facilities, not outlined in this Guidance. 3.2 The following principles apply to the application of this Guidance: • The Guidance will be applied to sites identified in the adopted Local Development Plan and planning applications; • The Guidance will not apply retrospectively to sites with full or ‘In Principle’ planning consent prior to each relevant section of the Guidance coming into effect; • Affordable Housing - August 2005; • Primary Education - May 2009; • Auchterarder A9 Junction - August 2009; • Transport Infrastructure - April 2014; • The Guidance will not be retrospectively applied to an application already Page 29 of 222
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6 submitted prior to the Supplementary Guidance being adopted unless a constraint has already been identified which may in the absence of this Guidance have resulted in a recommendation of refusal. 3.3 The Guidance will be applied to applications requiring the replacement or refurbishment of a dwellinghouse in the following circumstances: • Where it has been vacant, and no Council Tax payments have been made within the 7 year period prior to the registration of a planning application; • Where it is dilapidated or derelict and would need extensive work, requiring planning consent, to become habitable. 3.4 Non-residential buildings are considered to be ‘in use’ if Non-Domestic rates have been paid in the 12 months prior to the submission of a planning application. 3.5 Where applications are submitted for the renewal of planning consent the Guidance will be applied in accordance with Appendix 5. 3.6 Where a new proposal replaces an existing development with planning consent the assessment will normally be applied to the net additional development. If a revised full planning application is submitted, or a full application which seeks to alter the number of units specified in an ‘In Principle’ application which pre- dated the Guidance, as defined in paragraph 3.2, if the application is for a greater number of units then the Guidance will be applied to all net additional units. If a revised full planning application is submitted which seeks to increase the size of a non-residential use, the Guidance will apply to the additional Gross Internal Area. Where an application is made to modify or discharge a planning obligation or a Section 42 application to vary a condition, where the Core Development remains unchanged then any revised Guidance introduced since the original grant of planning consent will not normally be applied but each case will be determined on its own merits. 3.7 The Guidance sets out a framework of standard charges and formulae which form the basis for negotiating and securing Planning Obligations. However, in the case of large and/or complex developments contributions may need to be tailored to the particular scheme. This should make pre-application discussions easier and speedier because developers will have greater certainty about how much they will be expected to contribute. 3.8 In the case of applications for ‘In Principle’ planning permission where the development mix may not be known, a condition will be applied to any permission indicating that this Supplementary Guidance will be applied at the time of future applications. For larger proposals subject to a masterplan a contribution requirement may be secured through a legal agreement at the ‘In Principle’ stage to ensure certainty as the site progresses. 3.9 Delayed payment of contributions and affordable housing may be secured through a range of mechanisms as defined in Circular 3/2012 but will normally be by means of a Section 75 Planning Obligation between the Council, the landowner and any other relevant person(s). Such Planning Obligations will need to be registered before planning permission can be issued. Page 30 of 222
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7 3.10 Where contributions and affordable housing commuted sums are to be paid prior to planning consent being issued, this may remove the need for the use of a Planning Obligation. Where a developer is unable to pay the contribution in advance the Council will consider the phasing of the contribution with the development. 3.11 Where additional land is needed to facilitate infrastructure improvements, the developer may be required to either provide land on site or sufficient funding to acquire it. This may be offset against other developer contribution requirements. 3.12 In some circumstances, the Council may be willing to accept off-site provision on an alternative site. In such cases the details of both sites should be submitted together in order that the overall merits of the scheme can be assessed. The judgement as to whether off-site provision is acceptable will be based on a number of factors including: the desire to achieve balanced communities, the individual site circumstances in terms of location and accessibility. 3.13 In some cases, developers will provide the required infrastructure on the site themselves instead of paying the required contributions sum to the Council. 3.14 Implementing Infrastructure Capacity Improvements Providing the necessary infrastructure may require the Council to work in partnership with developers or upfront investment by the Council to be recouped at a later date. For example, a single development that might trigger the need for a new road junction may not in itself generate sufficient funds to meet the full cost of any required work. As it is impossible to build half or part of a junction, it is therefore likely that the Council would have to fund the work. It is therefore appropriate for the Council to request payments from subsequent developments benefitting from that investment until its costs have been recovered. 3.15 Development Viability Developers are expected to take the requirement for developer contributions and affordable housing into account in their financial appraisal prior to land deals and commercial decisions being taken. It is acknowledged that, in some cases, there may be abnormal development costs which were unknown at the time the site was purchased. In such circumstances, where the developer can demonstrate and clearly justify that there are exceptional costs, which render the development of the site unviable as originally proposed it will be required to demonstrate this to the Council’s satisfaction through the submission of a ‘Development Viability Assessment’. Only in very exceptional circumstances where there are excessive, previously unknown, abnormal costs will it be likely that the Council will agree to reduce or give exemption from the requirement to developer contributions or affordable housing. As such, it is anticipated that the submission of a Development Viability Assessment will be the exception rather than the rule. Standard development costs such as demolition works, retaining and ground works, landscaping, archaeological investigations, drainage works, site purchase, site servicing and flood prevention works will not normally be accepted as abnormal costs. Abnormal costs should be reflected in the purchase price of land and in this respect, the developer will be asked to demonstrate that abnormal costs were not known at the time the site was purchased. Page 31 of 222
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8 3.16 The Development Viability Assessment should be submitted at the earliest opportunity. All Viability Assessments’ must be carried out by an independent practitioner and suitably qualified chartered valuation surveyor at the developers’ expense. A Viability Assessment must include, where applicable; • Information of land values paid for the site or where no recent land transaction has taken place the Market Value (with supporting evidence and assumptions made); • Anticipated land sales values of sites to be sold on, such as medical centre, elderly persons care homes etc. (i.e. Not residential sites); • Plans; • Schedules of housing mix (Market and Affordable) including type, size and numbers. Gross/Net area schedule for build cost/value analysis; • Details of S.75 proposals and specifications, as appropriate; • Confirmation of S.75 assumptions and status of discussions with the Council; • Design and Access statement (if applicable and available); • Detailed appraisal (current costs/values) and cash flow; • Explanation of financial assumptions; • Explanatory note on all appraisal assumptions; • QS’s detailed cost budget on externals, infrastructure and abnormals; • Build specification; • Detailed breakdown of end sales values for market residential elements (with supporting evidence); • Programme (incl. construction and sales start/end for each phase); • Rents and yield assumptions for all commercial elements (with supporting evidence); • Assumptions on all grant funding and (where appropriate) evidence of transactions/negotiations with RSL’s; • Analysis of affordable housing provision and compatibility with prevailing policy requirement Once a Development Viability Statement is received by the Council it will be independently reviewed by the District Valuer Service (DVS) or an alternative third party advisor agreed by, and acting on behalf of the Council. This will be carried out at the developers expense with costs determined on an individual basis. The requirement for independent verification of Viability Assessments will only be removed where the time and cost associated with this process is disproportionate to the amount of developer contributions required. Each case will be determined by the Council on its own merits. The outcome of the Viability Assessment review will not be binding on the Council but may inform any recommendation to the Conveners of the relevant Committees and local area Councillors. 3.17 The sensitive nature of some financial information is acknowledged and therefore where requested the content of the Assessment will remain confidential between the applicant and named officials within the Council, independent assessor and the Convenors of the Relevant Committees. The position regarding statements and the Freedom of Information (Scotland) Act 2002 means should they need to be available to the public, they will be redacted with all figures and commercially sensitive wording blanked out. The Page 32 of 222
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9 statements will then be presented to the developer for agreement, prior to being made available for publicationon the Public Access portal on the Council website. Only in very exceptional circumstances where there are excessive, previously unknown, abnormal costs will it be likely that the Council will agree to reduce or give exemption from the requirement to developer contributions or affordable housing. As such, it is anticipated that the submission of a Development Viability Statement will be the exception rather than the rule. 3.18 Accountability Contributions from individual sites will be accountable through separate accounts and a public record will be kept to identify how each contribution is spent. Contributions will be recorded by the applicant’s name, the site address and planning application reference number to ensure the individual commuted sums can be accounted for. Annually, a statement will be published on the Council’s website with a summary of the total contributions received for each area of the Guidance and what they have been spent on. Eligible costs for expenditure will include funding for three Officer Posts to assist in the implementation of the Developer Contributions and Affordable Housing policies. Each account will be audited through the usual internal audit procedures. 3.19 All accounts are ring fenced for meeting the particular infrastructure requirement. Each section of this Guidance will set out the parameters for the use of funds, identifying the type of use to be made and the geographical area in which they can be spent. Where a contribution has been made developers will be able to reclaim any money not invested in the infrastructure it was required after the following time periods for date of payment to the Council: • Primary Education – 10 Years; • Auchterarder A9 Junction – No return of contributions; • Transport Infrastructure – 10 Years; Developers will have 12 months in which to reclaim any contribution. Where contributions are returned, interest will be made payable at 0.25% below the Bank of Scotland base rate. 3.20 Phasing of Payments Where a Planning Obligation is entered into, applicants have the option to phase payments over the lifetime of a development. The Council will set out a phasing schedule of contribution payments through the assessment of the planning application which is to be used when completing legal Planning Obligations. The acceptance of this phasing will speed up the completion of Planning Obligations. It should be noted that developers are not bound by this protocol, but where a bespoke agreement is required; discussions should be entered into at the outset of the submission of a planning application so as not to delay the processing of the Planning Obligation. Where a Planning Obligation is entered into the contribution requirement will typically be index linked. 4. Primary Education and New Housing Development 4.1 Introduction The following Supplementary Guidance applies over the whole local authority area of Perth and Kinross. 4.2 This Guidance sets out the basis on which Perth & Kinross Council will seek to Page 33 of 222
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10 secure contributions from developers of new homes towards the cost of meeting primary education infrastructure improvements necessary as a consequence of development. 4.3 The NRS 2016 based population projections indicate that Perth and Kinross has the eighth highest growth rate across all of Scotland. With a high proportion of the existing primary school estate currently working at or near capacity, projected school roll increases may result in the need to replace or expand primary schools within Perth and Kinross in addition to the construction of a number of additional primary schools in the Strategic Growth Areas. To ensure that primary infrastructure capacity does not become a major constraint on new development a partnership approach is required between the Council and developers. 4.4 Principles of the Guidance The Guidance will be applied to new housing in areas where a primary school capacity constraint has been identified. A capacity constraint is defined as where a primary school has been operating at over 80% for 5 out of the previous 7 years and is likely to be operating following completion of the proposed development, extant planning permissions and Local Development Plan allocations, at or above 100% of total capacity. Where the Council has funded an increase in Primary School capacity to meet the needs of new development contributions may be required from future development until a proportionate cost of the school improvements is received. This position will be reviewed annually. 4.5 The following key principles will apply: • Proposed residential dwellings of two or more bedrooms, along with consents for the change of use from or replacement of sheltered accommodation, or for conversions from alternative uses to residential where the units comprises two or more bedrooms, will make a full contribution; • Proposed one bedroom apartments, where it is clear that no additional rooms could be used as bedrooms, will not be required to pay a contribution. A one bedroom apartment can consist of the following rooms, sitting room, kitchen, bathroom, single bedroom; Proposed ancillary accommodation linked to an existing dwellinghouse will not be required to pay a contribution; • Proposed extension of a single bedroom dwelling to create residential units of two or more bedrooms will not be required to make a contribution if the existing dwelling has been occupied as a single bedroom dwelling for the 7 year period prior to the registration of a planning application. Where this 7 year exemption is not met then the contribution requirement will be assessed on an individual basis; • Affordable & Council housing will not be required to pay contributions. Affordable Housing is as defined in section 7 of this Guidance; • Developments of 20 units or less in the Perth City Centre Zone as defined Page 34 of 222
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11 in Appendix 4 will not be required to make a contribution. Where a proposal is for 20+ units then the contribution requirement will be assessed on an individual basis; • Applications for dwellings which are not likely to place an additional burden on the existing schools, for example, student accommodation linked to a College/University or holiday accommodation would not be expected to make a contribution; • Sheltered housing may not be required to pay a contribution. The proposed Use Class in line with the Town and Country Planning (Use classes) (Scotland) Order 1997 will be used in the determination of the requirement. Proposals which fall under Use Class 8: Residential institutions will be exempt. Proposals which fall under Use Class 9: Houses will be determined on an individual basis. 4.6 Developers Funding All developer contributions will be paid into a fund to facilitate the education provision needs in Perth and Kinross. The costs of education provision vary between each individual projects. There is a need to look at the school estate in its totality, as a constraint within one primary school catchment area can, on occasions, be resolved by either the creation of a new school elsewhere or the expansion of an adjacent primary school. Where possible, contributions will be invested within the relevant primary school’s catchment area (including denominational schools where they exist). Where it is not possible to invest in the same area, the Council reserves the right to invest the contributions received within the corresponding secondary school catchment areas to help alleviate the capacity issue. For the purpose of this Guidance, the four Perth non-denominational secondary catchment areas will be treated as a single catchment area. 4.7 Applying the Guidance Where a development proposal includes replacement or refurbishment of existing houses, the education contributions Guidance may not apply to all units. The test will be whether the proposal will effectively create additional residential units which were not available as houses previously. The guidelines are set out under paragraph 3.3. 4.8 Where a dwellinghouse has been subject of change of use and consent is sought to revert back to residential use a full contribution will be required. The exception being, if the change of use from residential was implemented within the 7 year period prior to the registration of a planning application to revert back to residential use, in such cases a contribution will not be required. 4.9 Determining Contribution Levels In order to provide a clear picture of expectations and to ensure parity of contribution across areas of need, it is considered that a formula based on the average number of children per household and the average cost of creating additional primary school capacity would be appropriate. This introduces both a demographic and construction cost variable. The rate may be revised annually to include indexation based on BCIS General Build Cost Index. 4.10 Appendix 1 sets out in which primary school catchments a contribution will be Page 35 of 222
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12 required. This list will be revised annually. 4.11 Developer Contribution Rates per Dwelling Type of Dwelling Contributions 1 Bedroom Dwellinghouse No Contributions Required Sheltered Housing Determined on an Individual Basis. Affordable Housing No Contributions Required 2+ Bedroom Dwellinghouse £6,300 4.12 Calculation of Contributions • Cost per pupil - £23,334 • Pupil Product Ratio - 0.27 • Total Contribution per House • £23,334 X 0.27 = £6,300 5. Auchterarder A9 Junction Improvements 5.1 Introduction The following Supplementary Guidance sets out the basis on which Perth & Kinross Council will seek to ensure contributions from developments within the Auchterarder and wider Strathearn housing market area towards meeting the cost of delivering the A9 Junction Improvements that are required in the interests of road safety. 5.2 The aim of the Guidance is to release development within the Auchterarder area which does not form part of the Auchterarder Expansion Development Framework but has been restricted due to road safety constraints of the A9 at Auchterarder. Those developments paying the contribution will subsequently have their consents released enabling development to continue within the area. 5.3 The area over which the protocol will apply has been identified in map form as shown in Appendix 2: A9 Junction Supplementary Guidance Boundary. 5.4 The basis of the boundary is to incorporate an area where development would access the A9 using Loaninghead or Aberuthven junctions or both and would subsequently benefit from the proposed junction improvements. Blackford and Dunning are not included within the boundary area since they are primarily accessed by other junctions. 5.5 Principles of the Guidance The following key principles will apply: • The contribution for a single dwelling will be £3450; • A contribution will be sought from all residential developments within the identified boundary of the wider Auchterarder area including single houses with the exception of affordable housing. Affordable housing is as defined in Part 2 of this Guidance; • The contributions for residential development will be calculated pro rata according to the number of dwellings involved; • This Guidance will not apply to areas within the approved Auchterarder Page 36 of 222
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13 Development Framework; • For non-residential developments within the identified boundary that have a trip generation equal to or higher than a dwellinghouse, an assessment for contributions will be made on a case-by-case basis. However where it is considered the proposed development would reduce the need to travel e.g. through the provision of local employment or services, the Guidance would not apply; • Out-with the identified boundary area, but within the Strathearn Housing Market Area, a contribution would only be sought from developments that require a Transport Assessment which identified that the development would have an impact on the A9 junctions within the boundary area at Auchterarder. 5.6 Applying the Guidance Where a development proposal includes replacement or refurbishment of existing houses, the A9 Junction contributions Guidance may not apply to all units. The test will be whether the proposal will effectively create additional residential units which were not available as houses previously. The guidelines are set out under paragraph 3.3. 5.7 Major developments contrary to the Development Plan will be subject to separate assessment against this Guidance on road safety grounds. 5.8 Developer Contribution Calculation The total cost of the project in accordance with 2007 figures is estimated at £10.52m. Transport Scotland has contributed £1.4m towards the Loaninghead junction improvements. The remaining £9.12m will be provided by the Consortium delivering the Auchterarder Development Framework, gWest and other developments impacting on these junctions. 5.9 The contribution will be set at £3450/house. The basis of each contribution paid would seek to be proportional to the impact the development would have on the trunk road infrastructure. For non- residential development, the contribution will be calculated on the basis of the impact of an equivalent number of residential properties. 6. Transport Infrastructure 6.1 The following Supplementary Guidance is about facilitating development. It sets out the basis on which Perth and Kinross Council will seek contributions from developments in and around Perth towards the cost of delivering the transport infrastructure improvements which are required for the release of all development sites and to support the growth of Perth and Kinross. 6.2 The Council is seeking contributions from a package of measures which are essential to support the delivery of the Local Development Plan (LDP). The projected costs of the infrastructure have been estimated in line with industry standards. The current working estimates are as follows: Element Cost £ Page 37 of 222
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14 Cross Tay Link Road (“CTLR”) £150.47m A9/A85 Crieff Road junction improvements £49.4m Total £199.8m Note: These are based on 2022 estimates 6.3 Updated Traffic Modelling has been undertaken in 2018 which has identified that 50% of future traffic growth is associated with new development sites in the LDP2. The contribution level is therefore calculated on the basis of 50% of the total costs (£99.9m), the remainder (£99.9m) being sought through other mechanisms. 6.4 The Transport Infrastructure contributions collected through this mechanism will only be used for the identified packages outlined in Paragraph 6.2. This contribution shall be considered as being additional to any other cumulative or site-specific transport contribution required in relation to the development. Following appropriate assessment, proportionate contributions or mitigation will be sought for work to the strategic transport network at the A9 Broxden junction. Early discussions are recommended to establish specific requirements. Proportionate contributions or mitigation may also be sought for rail infrastructure, the Inveralmond junction or the Perth Park and Ride Schemes. 6.5 Following appropriate assessment, proportionate contributions or mitigation will be sought toward the infrastructure to be delivered by Perth & Kinross Council at LDP2 Site MU70 (Perth West), including an A9 underpass to address site severance. Early discussions are recommended to establish specific requirements from landowners/developers within MU70. 6.6 Principles of the Guidance Subject to the exceptions set out in this policy, this Supplementary Guidance applies to all development within the defined boundary identified in Appendix 3. This is because the transport appraisal relating to this Guidance illustrates a link between all development in the defined area and the impact which the defined transport improvements seek to mitigate, as per the guidance in Circular 3/2012: Planning Obligations and Good Neighbour Agreements. The full contribution level applies to all development within the identified Perth Core Area which is defined by settlements in this area having more than a 19% impact on the transport infrastructure. The reduced contribution level applies to all development out-with the Perth Core Area which is defined by settlements in this area having a 12% - 19% impact on the transport infrastructure. Out with the defined boundaries no contributions will be required, except for development for which a Transport Assessment is necessary and then identified as having a significant direct impact on any element of the infrastructure package (i.e. 12% or above). In such cases a higher contribution may be applied. 6.7 Residential developments of 20 units or less in the Perth City Centre Zone, as defined in Appendix 4 will not be required to make a contribution. Where a proposal is for 20+ units, then the contribution requirement will be assessed on an individual basis. 6.8 In order to support the economic growth of Perth and Kinross, new employment Page 38 of 222
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15 uses which fall under the Employment Land Use category of the Transport Infrastructure section of this Guidance, and which are to be developed on brownfield land, will not be required to make a contribution. New employment uses on Greenfield land not cross subsidised by residential development will be considered on an individual basis. This will take account of the potential impact of the development and the extent to which the development directly benefits from the improved infrastructure. Extension of existing non-retail businesses on brownfield land will not be required to make a contribution. 6.9 The Retail contribution rate will only be applied to the trading floorspace of new or extension to existing retail developments. Non-trading and Back of House functions space will be calculated on the employment use category. Vehicular retail showrooms will be calculated based on the floorspace of proposed buildings. 6.10 Proposed buildings for agricultural use, such as cattle sheds and storage units needed to operate the farm business, will generally not be required to make a contribution. Office and Staff Buildings in association with agricultural use may be required to contribute. 6.10 Holiday accommodation including static caravan pitches and chalets will be calculated against the Residential – Affordable contribution rate. Temporary structures such as camping pods or touring caravan pitches will not be required to make a contribution. 6.11 Where a proposal supports specific Council objectives, such as regeneration or significant economic benefit but where it would not be viable due to the application of the Supplementary Guidance the Council may enter into negotiations to reduce the contribution with each case assessed and determined on its own merits. 6.12 Proposals for a change of use to form residential including the subdivision of existing residential property, but excluding agricultural buildings and ancillary accommodation/ residential garages, will not normally be expected to provide a contribution, unless they result in the creation of 5 or more residential units. 6.13 In the event of a contribution of land towards the development of the CTLR, the amount of contribution required under this mechanism may be revised. Each application will be considered on its individual merits, taking into account factors such as the value of the land, its condition and any remedial works required to make it suitable for use. Land values will be assessed independently by the District Valuation Service (or other mutually agreed appointee) with a joint brief being agreed between the Council and the applicant. 6.14 In circumstances where non-residential developments are proposed which typically do not include built internal floorspace (for example quarries, outdoor leisure operations etc.) but are judged through a Transport Assessment to have a demonstratable impact on the transport network, the contribution level will be calculated on an individual basis. 6.15 How is the Contribution Calculated? Page 39 of 222
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16 The transport contributions are calculated on the Gross Internal Area (GIA) of new non-residential development or in the case of residential development the total number of units proposed. Where replacement buildings are proposed, (provided the building is in current use), the Trip Rate of the existing use will be taken into account and the contribution reviewed accordingly on a case by case basis. GIA includes everything within the external walls of the buildings (lifts, stairwells and internal circulation areas). It does not include areas like external balconies or the thickness of external walls. Appendix 6 sets out the GIA definitions. 6.16 Applicants for planning permission for non-residential buildings are advised to provide the following information with each planning application: • Current GIA of buildings and their uses to be demolished (if any); • Proposed GIA of all buildings and their uses on site once the development has been completed. 6.17 Using this information, the Council calculates the net increase in GIA. This result is multiplied by the appropriate contribution rate in £/m² to calculate the required contribution level. 6.18 Contribution Rates per Development The contribution level will be reviewed within a 5 year period from adoption of the Supplementary Guidance. Any review will take account of updated costs in relation to the infrastructure projects such as land costs, detailed designs, inflation and construction costs. The rates set out in this guidance may be revised to account for these updated costs and implemented without further formality. Any revised contribution level will not be applied retrospectively to consented planning permissions. 6.19 Perth Core Area The Perth Core Area includes the settlements of Perth, Scone, Almondbank, Bridge of Earn, Oudenarde, Abernethy, Methven, Stanley, Luncarty, Balbeggie, Perth Airport and also the land between these settlements surrounding the main transport routes into Perth. 6.21 Full Contribution Area Rates Land Use CTLR A9/A85 New Total Retail (m²) £139 £46 £185 Employment (m²) £13 £4 £17 Other Non-Residential (m²) £43 £14 £57 Residential Open Market (per unit) £3,288 £1,079 £4,367 Residential Affordable (per unit) £1,644 £540 £2,184 Page 40 of 222
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17 6.22 Reduced Contribution Area Rates Land Use CTLR A9/A85 New Total Retail (m²) £104 £34 £138 Employment (m²) £10 £3 £13 Other Non-Residential (m²) £33 £11 £44 Residential Open Market (per unit) £2,466 £810 £3,276 Residential Affordable (per unit) £1,233 £405 £1,638 Page 41 of 222
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Appendix 1 – Education Requirements Developer contributions requirements for individual schools Version 5: 2023 Next Review: 2024 To assist applicants with the preparation of development costs, the following schedule showing the school catchment areas where contributions will be sought. This schedule is based on selected schools which have been operating at above 80% for 5 out of the previous 7 years and is likely to be operating following completion of the proposed development, extant planning permissions and Local Development Plan allocations, at or above 100% of total capacity. Where the Council has invested in Primary Schools to support future development a contribution will be sought from new development within the relevant primary school catchment. Where investment has taken place this is identified below: Primary School School Capacity Capacity Issue Investment action Auchterarder CS Cluster Auchterarder 514 Yes Reconfiguration as required Blairgowrie High Cluster Newhill 423 Yes Capacity required Breadalbane Academy Cluster N/A N/A N/A N/A Crieff High Cluster Crieff 466 Addressed by action New School built (2015) with capacity for expansion Kinross High Cluster Kinross 566 Addressed by action New School built (2017) Milnathort 257 Yes Capacity required Perth Academy Cluster Robert Douglas Memorial 462 Yes Capacity required Page 42 of 222
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19 Perth Grammar Cluster Tulloch 434 Addressed by action New school built (2018) Perth High Cluster Abernethy 283 Addressed by action Extension to school built (2013) Dunbarney 207 Yes Capacity required Errol 316 Addressed by action Extension to school built (2016) Inchture 264 Addressed by action Extension to school built (2014) Kinnoull 203 Addressed by action Extension to school built (2014) Pitlochry High Cluster N/A N/A N/A N/A Bertha Park High Cluster Note: Associated Primary Schools of Bertha Park High School are as follows and may be listed above within the existing Perth secondary school cluster: Auchtergaven Primary School, Dunbarney Primary School, Forgandenny Primary School, Logiealmond Primary School, Methven Primary School, Pitcairn Primary School, Ruthvenfield Primary School, Pupils resident in Oudenarde Page 43 of 222
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20 Appendix 2 – A9 Junction Supplementary Guidance Boundary Page 44 of 222
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21 Appendix 3 – Transport Infrastructure Contributions Area Page 45 of 222
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22 Appendix 4 – Perth City Centre Zone Page 46 of 222
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23 Appendix 5 – Application of the Supplementary Guidance to Planning Applications Page 47 of 222
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24 Page 48 of 222
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25 Appendix 6 – Gross Internal Area Definitions (GIA) Page 49 of 222
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26 Contact information For further information on developer contributions and any enquiries regarding the guidance, please contact the Development Contributions Officer at: Email: TESDevelopmentContributions@pkc.gov.uk Tel: 01738 475417 Page 50 of 222
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Draft Developer Contributions and Affordable Housing Supplementary Guidance (2023) Part 2: Affordable Housing 5 Page 51 of 222
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2 Contents 1. What is affordable housing? 3 2. Why do we need an affordable housing policy? 3 3. Applying the policy: the sequential approach 3 4. Funding mechanisms for delivery of affordable housing 7 5. Types of affordable housing 8 6. Delivery of affordable housing on development sites 9 Contact information 13 Please see ‘Part 1: Developer Contributions’ for further guidance on developer contribution requirements. Page 52 of 222
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3 1. What is ‘affordable housing’? 1.1 National Planning Framework 4 2023 (NPF4) defines affordable housing as: “Good quality homes that are affordable to people on low incomes. This can include social rented, mid-market rented, shared-ownership, shared-equity, housing sold at discount (including plots for self-build), self-build plots and low-cost housing without subsidy.” (Annex F, page 144) 2. Why do we need an affordable housing policy? 2.1 The Scottish Government’s Housing to 2040 sets out their ambition “for everyone to have access to a warm, safe, affordable and energy efficient home that meets their needs, in a community they feel part of and proud of”. This approach recognises the need to provide a wide range of affordable homes, allowing people the choice of lifestyle and home regardless of income. Scottish Government planning policy supports this approach and NPF4 policy 16(e) states: “Development proposals for new homes will be supported where they make provision for affordable homes to meet an identified need. Proposals for market homes will only be supported where the contribution to the provision of affordable homes on a site will be at least 25% of the total number of homes…” (page 63) 2.2 Studies of housing need and affordable housing requirements are carried out across the Perth and Kinross area as part of the preparation of the Housing Need and Demand Assessment (HNDA). The HNDA gives long run estimates of housing need and provides an evidence base for the Council’s Local Housing Strategy (LHS) and the Local Development Plan (LDP). Further localised HNDAs have been undertaken by the Communities Housing Trust in Aberfeldy, Dunkeld & Birnam, Comrie. Mount Blair and Pitlochry. These have been undertaken to gain a better understanding of the impact that high market prices have in on houses in a rural setting. 2.3 Policy 20 in the adopted Perth and Kinross Local Development Plan 2 2019 (LDP2) identifies that 25% of the total number of housing units per housing site should be provided as affordable. This approach is then guided using the LHS priorities, planning policy, evidence from the HNDA and local housing lists. An analysis of this information then supports the identification of type and tenure for a location based on local need and demand. 3. Applying the policy: the sequential approach 3.1 LDP2 Policy 20 states: “Residential development, including conversions, consisting of five or more units should include provision of an affordable housing contribution amounting to an equivalent of 25% of the total number of units proposed. Wherever practical, the affordable housing should be integrated with and indistinguishable from market housing. If the provision of the affordable housing on-site is not possible following a viability assessment, the Council will seek off-site provision. Failing that, and in appropriate circumstances, a commuted sum will be required from developers. Page 53 of 222
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4 The details of provision, including landlord, tenure, house size and type, will be a matter for agreement between the developer and the Council and based upon local housing need and individual site characteristics. The Council will consider innovative and flexible approaches to the delivery of affordable housing and will take into account considerations that might affect deliverability such as development viability and the availability of funding.” (page 40) 3.2 The Council’s preference is to locate affordable housing on site and as part of a mixed development of private and affordable homes. There may be proposals for 100% provision of affordable housing, and these will be acceptable as part of a wider mixed community and where all other relevant LDP policies are met. 3.3 Residential developments, including conversions, consisting of 5 or more units should include provision of an affordable housing contribution amounting to an equivalent of 25% of the total number of units proposed, except where the LDP varies this quota on an individual site basis, or sites of 20 units or less in the City Centre Zone (see map below and Appendix 4 in Part 1 of this guidance). Whenever practical, the affordable housing should be integrated with, and indistinguishable from the market housing. 3.4 The Council’s sequential approach to the delivery of affordable housing requirements is laid out in Table 1. The details of tenure, house size and type, will be a matter for agreement between the developer and the Council and based upon local housing need and individual site characteristics. Page 54 of 222
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5 On site Provision of Affordable housing on site; or Transfer of an area of serviced land on site to Council / Housing Association Off site Provision of affordable housing off-site; or Transfer of an area of serviced land offsite to Council / Housing Association Commuted sums Where it is not possible to achieve appropriate affordable housing on site. Table 1: sequential approach 3.5 On Site Provision 3.5.1 On-site provision is the preferred option for all development proposals. Where affordable housing is being provided on-site, the housing will either be built by or transferred to a Housing Association or the Council, with the exception of: discounted for sale, unsubsidised homes, private rented accommodation or discounted serviced plots for self- build. 3.5.2 Developers should enter early discussions with the Housing Strategy team, preferably before the submission of a planning application. This will help to identify the following: • The type and size of affordable housing requirement to meet the needs in the area. • The provider most appropriate to deliver the required mix of tenure. • Provide advice on how the Scottish Government subsidy funding requirements can be met. 3.5.3 Developers will be required to build an agreed number, type, and mix of affordable housing units on site, including any required wheelchair housing (Housing for Varying Needs standards) for subsidised rent or sale by the Housing Association or Council. Where the affordable element is to be delivered by the developer, deadlines must be set for the delivery of the affordable housing relative to the timescale of delivery of the private housing. 3.5.4 Alternatively, the land for the affordable housing element can be transferred to the Council or Housing Association to develop. Developers will agree to transfer an area of services land to a Housing Association or the Council for a valuation based on affordable housing only (as agreed by the District Value or an agreed chartered valuation surveyor). 3.6 Off Site Provision 3.6.1 Where on-site provision cannot be achieved; the Council may be willing to consider the provision of affordable housing off-site or the transfer of an area of serviced land off-site. This will depend on several factors such as the desire to achieve balanced communities, the Page 55 of 222
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6 site circumstances (location and accessibility) and any difficulties associated with its development. 3.6.2 If the Council accepts the provision of affordable housing off-site the developer will be required to build an agreed number, type and mix of affordable housing units on another site within the area that is under their control for subsidised rent or sale either for the Council or a Housing Association. Where the affordable element is to be delivered by the developer a deadline will be set for the delivery of affordable housing relative to the timescale of the private housing. The provision of affordable housing off-site will be in addition to the affordable housing requirement relating to the alternative site. 3.7 Transfer of an area of serviced land off-site 3.7.1 Alternatively, the land for the affordable housing element can be transferred to the Council or a Housing Association for them to develop. Developers will agree to transfer an area of serviced land for a valuation based on affordable housing only (as agreed by the District Valuer or an agreed chartered valuation surveyor). 3.8 Commuted Payments 3.8.1 It is important to note that it will only be in limited circumstances that the Council will accept the payment of a commuted sum in lieu of the provision of affordable housing on or off-site. One of the primary obstacles to the delivery of affordable housing in Perth and Kinross is the difficulty which Housing Association’s experience in being able to compete with private developers to acquire land. This, coupled with the importance of creating socially inclusive and mixed communities, means that the Council will generally always seek the provision of affordable housing on-site or on an alternative site within that housing market area. The payment of a commuted sum to meet an affordable housing requirement will only be a final option offered to a developer. 3.8.2 Commuted sums may be acceptable only if there are no suitable sites brought forward after following the sequential tests above or where there are restrictions to the availability of public subsidy. A Viability Assessment will be required in all cases to demonstrate why the development would not be financially viable with on-site provision. Evidence of this should be provided in a Viability Statement providing financial or planning justification as to why the development cannot incorporate affordable homes. More details about undertaking this process, see Part 1 of this document on How to undertake Development Viability Assessments. 3.8.3 The instances where a commuted sum may be acceptable include: • Where a development is in a remote rural setting or out with a settlement where it is difficult to access services; • Where the scale of development results in sporadic units, creating affordability difficulties for Housing Associations; • Where the number of units proposed are below the thresholds identified in the policy; • Where the Council’s Housing Service recommend that this is the most appropriate form of contribution in considering the Council’s strategic housing priorities. Page 56 of 222
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7 3.8.4 These payments will be used to enable off-site provision to make an equal and equivalent financial contribution to an affordable housing fund managed by the Council which promotes the direct provision of affordable accommodation through the Council or Housing Association on other sites. The commuted sum must be spent within the local housing market area Income from this source will be identified in the Strategic Housing Investment Plan (SHIP). 3.9 Calculation of commuted sum 3.9.1 Commuted sums will be calculated in line with national guidance PAN 2/2010 Affordable Housing Land Audits and Affordable Housing Supply Programme: process and procedures MHDGN 2022/02, as well as guidance notes issued by the RICS and in particular ‘Valuation of Land for Affordable Housing Scotland' GN100/2013 and GN Valuation of Development Property October 2019. 3.9.2 In line with Pan 2/2010, paragraph 22, the valuation of commuted sum will be determined independently by the District Valuer (DV). Research was commissioned from the DV (19 January 2023) to determine at what level the commuted sum should be set for each Housing Market Area in Perth and Kinross. On the basis of the research, the commuted sums effective from 1st April 2023 are as follows: Housing Market Areas Plot Value per Unit for Private Sale Plot Value per Unit for Affordable Housing Commuted Sum per Unit Highland £25,000 £1,000 £24,000 Kinross £25,000 £1,000 £24,000 Perth £36,000 £1,000 £35,000 Strathearn £28,500 £1,000 £27,500 Strathmore £21,500 £1,000 £20,500 Table 2: Commuted sums requirement per HMA 3.9.3 This table will be updated annually based on the procedure set out in 3.9.2. 3.9.4 Where an Affordable Housing commuted sum has been made developers will be able to reclaim any money not invested in the infrastructure it was required after the utilisation period of 5 years of the date of payment to the Council. Developers will have 12 months from the date of the 5-year deadline in which to reclaim any contribution. Where contributions are to be returned, interest will be made payable at 0.25% below the Bank of Scotland base rate. 4. Funding mechanisms for delivery of affordable housing 4.1 Most of the funding for affordable homes comes from the Scottish Government Affordable Homes Supply Programme (AHSP). This is supplemented by council funding (Council Tax second homes funds), commuted sums (in lieu of on-site affordable provision) from developers, Prudential Borrowing (Councils) and Private Finance borrowing (Registered Social Landlords). The plan for new housing is directed by the council’s Strategic Housing Investment Programme (SHIP). Page 57 of 222
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8 4.2 The most common source of land for affordable homes comes from requirement in LDP2 Policy 20 for developers to deliver 25% of their development proposals for affordable homes. The land is transferred to the ownership of a Housing Association partner or the Council to build a variety of affordable types and tenures. The tenures are determined by need and demand in the local area. Less commonly, Council-owned land is developed by the Council itself or made available to Housing Associations to build affordable homes. Likewise, private developers may restructure their land stocks and dispose of land to Housing Associations or the Council for additional affordable housing. 4.4 Affordable homes can also be delivered through the renovation or repurposing of buildings using the same funding, including the Council buy-back scheme, returning former Council homes to Council ownership. Increasingly buildings are being repurposed and brownfield sites are being regenerated to create affordable homes that meet higher energy efficient and quality standards. 5. Types of affordable housing 5.1 There are a range of affordable housing options on offer that people can access in Perth & Kinross Council. 5.2 Homes for Rent 5.2.1 Social rent are homes generally provided by Housing Associations (RSLs) and Perth & Kinross Council at affordable rents on a secure basis to those in housing need. Homes are regulated by the Scottish Housing Regulator to ensure standards are high and rents kept affordable. 5.2.2 Mid-market rental good quality, affordable, private rented homes provided by Housing Associations aimed at people on low or modest incomes that wouldn’t be prioritised for a socially rented home. Rents are lower than private market rent levels in the area. Aimed at a wide range of demographics and needs can Find a MMR home in Perth and Kinross 5.3 Low-Cost Home Ownership 5.3.1 Shared equity helps first time buyers and priority groups on low to medium incomes into home ownership. There are currently two schemes. In both you hold the majority share of the home and are responsible for the property. In the OMSE, the Scottish Government holds the remaining share and is open to any house for sale. In the NSSE scheme, a housing association or council holds the remaining share and is for new build housing. 5.3.2 Shared Ownership provided by housing associations. It offers a route to homeownership - if you're unable to afford to purchase a property outright, you can part-buy and part-rent your home. You can choose to buy a 25%, 50% or 75% share in your home. You pay rent on the share you don’t buy, and the rent is usually set at an affordable level of 2.75%. 5.3.3 Self and custom build housing are homes which are built or contracted by individuals or groups of individuals for their own use. These homes offer a unique alternative to standard market housing, bespoke to the needs of an individual, family or group, with their input on design and features. The council may discount plots to make them affordable. Can be particularly suitable in rural areas. 5.3.4 Co-housing is designed to foster connection. Usually owner-occupied (can also be mid-market rent). Physical spaces allow neighbours to easily interact with each other around Page 58 of 222
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9 internal and external communal spaces with commonly provided guest accommodation. Collaborative decision-making on the design and use of the buildings helps to develop relationships with neighbours and provides support networks which can be particularly attractive to people later in life. 5.3.5 Independent living aims to provide suitable options of accommodation for individuals assessed as having care and support needs to live independently in the community. This may include those with learning disabilities, autism, physical disabilities, mental health and acquired brain injury. Independent living support is most commonly offered through social rent but can be provided in all tenures, including self-build. 6. Delivery of affordable housing on development sites 6.1 Once development potential has been established and a site moves through the planning process, there are several key areas to be considered when designing the site. 6.2 Integration and tenure blind design Integration of affordable homes into any site should be key consideration from the outset. Affordable homes and market homes should be designed to create a sense of place within a development rather than as separate communities. Affordable plot sizes do not necessarily have to reflect their market equivalents, but they should be integrated into a varied tenure that produces choice and an attractive streetscape. This can be supported through the careful co-ordination of elements such as materials, colour palettes, architectural details, and boundary treatments. Different types of homes have sat adjacent to each other in the gradual development of urban areas, and this helps to create diversity within communities. There are some factors that will help determine the site approach of affordable housing integration: • The proposal should reflect the Council’s commitment to supporting mixed and inclusive communities in Perth & Kinross by delivering choice. • There should no difference in the quality of the design of all homes on the site. • Consideration as to the mix of tenures within a site to provide choice and encourage diverse communities. • The inclusion of specialist provision requirements to support independent living and that caters to all ages. • Construction access and site management can also have an impact on the location of affordable housing, as well as any ongoing property maintenance and management. 6.3 Phasing Developing a larger site in phases of less than five units, specifically to avoid the application of the affordable housing policy, will not be acceptable. It is recognised that in some cases, a developer may have a valid reason for developing in small phases. Any subsequent applications submitted for additional units which are clearly part of the same development and resulting in the total number of units increasing to five or more will have the affordable housing policy applied retrospectively. Developers wishing to develop in small phases are encouraged to discuss this with the Council at the outset to ensure that the affordable housing contribution can be properly planned. Page 59 of 222
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10 6.4 Densities A developer may seek to build less than five houses on a site which clearly has capacity for a larger development meaning that the affordable housing policy will not apply. It is recognised that in some locations lower density development is desirable and, in such situations, the Council will take account of standard housing densities, the location of the site, the character of the surrounding area, and the type of houses proposed in determining whether the smaller number is acceptable. Where it is considered acceptable, the guidance relating to phasing above, will also apply. 6.5 Houses for private rent The Local Housing Strategy reports that letting agents and landlords in private renting view the sector as having high levels of demand. As evidenced in the HNDA (2022), Perth and Kinross Council has a higher percentage of households in the private rented sector at 16% than the Scottish average at 12%. Whilst it is acknowledged that some developers prefer to build to rent, it is considered that private housing for rent as an affordable category is difficult to implement due to difficulties in ensuring that rents remain at an affordable level i.e. a level which is comparable with Council and Housing Association rent levels. In such cases, developers are encouraged to contact the Housing Strategy team to discuss the available tenures of midmarket rent or intermediate rent, and what the levels of rent currently are. Affordable housing requirements relating to proposals for tied accommodation or properties built by private estates for essential estate workers will be assessed on an individual basis. 6.6 Sheltered housing developments Open market sheltered housing schemes generally meet the requirements of the more active elderly population and as such can be seen to be addressing general housing needs, not affordable housing needs. The Council will continue to seek the provision of a wide range of housing suitable for older people and recognise that it will not be appropriate to require an affordable housing contribution from some types of specialist accommodation, for example, care homes or other residential institution. However, in the case of open market sheltered housing developments, these will be subject to the affordable housing policy. Where sheltered units are to be provided as part of a mixed development and will be available through a Housing Association or sold at an affordable price, they may be considered as meeting the affordable requirement for the development. 6.7 The retention of houses as affordable The retention of houses as affordable in perpetuity will most easily be achieved where a Housing Association is involved i.e. social rent or some form of shared equity involving grant assistance from Scottish Government which allows for grant funding to be returned to the Scottish Government should the house be sold within a specified period. It is acknowledged it is harder to achieve affordability in perpetuity in the case of discounted for sale, shared equity or unsubsidised houses. Houses which fall into the unsubsidised low-cost housing for sale category are smaller less expensive houses generally for entry level which are sold without any subsidy or discount. These houses may be affordable simply due to their smaller size. PAN 2/2010 suggests that some form of legal agreement may be required to retain such houses as affordable in perpetuity. However, it is considered that there will generally always be a limit on what the resale price of such houses will be. If the Council are satisfied that on resale such properties will remain at an affordable price – allowing for inflation and taking into consideration the area in which the houses are – then it is likely that, generally, it will not be necessary to impose a condition to maintain the houses as affordable in perpetuity. In the case of subsidised low-cost Page 60 of 222
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11 housing sale properties, either it is accepted that such houses will only be affordable to the first household, or a burden, or condition (e.g. Deed of Condition attached to the property’s Title Deeds) is put in place in the title deeds to maintain the houses as affordable in perpetuity. The Council will consider applications containing subsidised low- cost housing for sale on their individual merits. 6.8 Affordable house prices Analysis was carried out using data from the Centre of Housing Market Analysis (CHMA) documents1 and by using A Practitioners Guide – Housing Need and Demands Assessment October 2018 data where a house is affordable to purchase if its price does not exceed 3.6 times a household’s income. The Perth and Kinross area has seen the largest increase in volume of house sales over the last 10 years of all Tayside partner areas at 27.8%. The average house sale value in Perth and Kinross has risen by 13% from 2009 to £199,463 in 2019. To improve accessibility to home ownership, the table below shows the maximum sales prices applicable to the low-cost housing for sale options potentially available to developers. Maximum prices for houses to be purchased through the Shared Equity, subsidised and unsubsidised low-cost housing for sale options: Maximum Price Threshold Apartment Sizes Price Threshold* 2 (1 bed) £95,000 3 (2 bed) £145,000 4 (3 bed) £200,000 5 (4 bed) £250,000 6 (5 bed) £310,000 Table 3: Price thresholds * The maximum based price threshold is calculated based on the Open Market Shared Equity Scheme area-based limits for Perth and Kinross2 1 www.gov.scot/publications/centre-for-housing-market-analysis-list-of-guidance/ 2 www.gov.scot/ publications/open-market-shared-equity-thresholds Page 61 of 222
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12 6.9 Marketing and identification of priority client groups Where the affordable housing proposed is unsubsidised or subsidised low-cost housing for sale, there will be further requirements in terms of the marketing of the affordable housing and the identification of the priority client groups. Developers are asked to contact the Housing Strategy team for further details on this. In general the priority client group is taken to mean people on modest incomes (income threshold to be assessed by Perth and Kinross Council), who are either first time buyers; or persons who currently own their own home but require a new home following a significant change in their household circumstances; or persons with a disability who own a house which does not meet their particular needs; and who are in the following priority: • Council or Housing Association tenants who currently live in Perth & Kinross or; • Council or Housing Association waiting list applicants who have an established local connection to Perth and Kinross and who have requested Perth and Kinross as an area in which they wish to be houses; or • Residents of Perth and Kinross. The property must be the applicant’s permanent home and not used as a second home or let out. The size of the property allocated should be appropriate to the size of the household. Developers may be required to submit a marketing strategy to the Council for approval as part of planning consent or Section 75 Agreement, the detail of which will be defined, but will likely indicate the advertising, marketing periods and application process for the relevant units. Prior to submitting a marketing strategy, developers are urged to contact the Council’s Housing Strategy team to confirm the relevant time periods and priority client groups etc. Page 62 of 222
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13 Contact information For further information on affordable housing and any enquiries regarding the guidance, please contact the Housing Strategy team at: Email: AffordableHousing@pkc.gov.uk Tel: 01738 476405 Page 63 of 222
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PERTH AND KINROSS COUNCIL Environment, Infrastructure and Economic Development Committee – 31 May 2023 Climate Change and Sustainability Committee – 31 May 2023 Scrutiny and Performance Committee – 7 June 2023 Housing and Social Wellbeing Committee – 21 June 2023 COMMUNITIES SERVICE ANNUAL PERFORMANCE REPORT 2022/23 Report by the Executive Director, Communities (Report No. 23/168) 1. PURPOSE 1.1 This report presents the Service Annual Performance Report 2022/23 for Communities. It details progress against targets and improvement actions over the last year against the 2022/23 Service Business Management Improvement Plan. 2. RECOMMENDATIONS 2.1 It is recommended that the Environment, Infrastructure and Economic Development Committee: • approves the Communities Service Annual Performance Report 2022/23 for the areas which fall within their remit. 2.2 It is recommended that the Climate Change and Sustainability Committee: • approves the Communities Service Annual Performance Report 2022/23 for the areas which fall within their remit. 2.3 It is recommended that the Scrutiny and Performance Committee: • scrutinises and comments as appropriate on the Communities Service Annual Performance Report 2022/23. 2.4 It is recommended that the Housing and Social Wellbeing Committee: • approves the Communities Service Annual Performance Report 2022/23 for the areas which fall within their remit. 3. STRUCTURE OF REPORT 3.1 This report is structured over the following sections: • Section 4: Background • Section 5: Proposals • Section 6: Further Considerations • Appendices 6 Page 65 of 222
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4. BACKGROUND 4.1 In previous years, Council Services have produced a Joint Service Business Management and Improvement Plan (BMIP) and Annual Performance Report (APR) on an annual basis. This year, however, as we transition to new performance reporting and strategic planning arrangements, we are presenting a Service Annual Performance report on its own. Detail on improvement actions will follow later in the year through the Corporate Annual Performance Report and Delivery and Improvement Plan. 4.2 During the course of 2022/23, organisational changes were undertaken which moved the responsibility for key actions such as anti-poverty into the Chief Executive’s Service. However, rather than create another Annual Performance Report for these, updates on performance are still included within the APR for Communities, given that was where the actions were originally proposed. 5. PROPOSALS 5.1 The report includes performance summaries and end of year data, where currently available. Where relevant benchmarking data, self evaluation, inspection and audit results have been included. 5.2 Future reporting will be aligned to our new Corporate Plan, which was approved by Council on 21 December 2022, and covers the period from 2022/23 to 2027/28. 5.3 The Council is continuing to roll out a new performance management software system in 2023, which will change the way in which performance information is managed and presented. 5.4 Strategic planning and performance reporting arrangements are being reviewed across the Council, taking into account revisions to key strategic documents and new performance management software. For 2023, planned improvement activity will be outlined within a Corporate Annual Performance Report and Delivery and Improvement Plan. This will be reported to Scrutiny and Performance Committee and then Council in September and October respectively. 5.5 Key Highlights • We support business to grow and attract investment and higher value jobs into Perth & Kinross as outlined within the Economic Wellbeing Plan. We have supported the deployment and use of the digital fibre network to support business innovation and growth. (Environment, Infrastructure and Economic Development Committee) • We continue to deliver the Climate Change Strategy for Perth and Kinross, which sets out our plans and actions to lower our carbon usage and meet our obligations on upcoming regulatory requirements – with a particular Page 66 of 222
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focus on transport and food this year. The Strategy and the establishment of the Climate Commission ensure that we are acting now to protect the environment for future generations. (Climate Change and Sustainability Committee) • We have worked with other services and partners to mitigate the impact of the cost-of-living crisis on our residents, including preventing homelessness wherever possible. We have played a key role in helping to protect people from escalating costs, and as you can read in this report, we have already started a wide range of work to support people who are finding themselves in financial difficulty. (Housing and Social Wellbeing Committee) • We have worked with partners to develop a new Town Centre Action Plan for Coupar Angus to address the priority issues including, health and wellbeing, poverty, social isolation and employability. (Housing and Social Wellbeing Committee) • We continue with major key infrastructure to support the local economy including the Cross Tay Link Road which is due for completion in 2025 and the redevelopment of the Perth City Hall as a cultural attraction due to be opened in 2024. (Environment, Infrastructure and Economic Development Committee) 6. FURTHER CONSIDERATIONS 6.1 This report provides a high level summary on the delivery of actions approved within the previous Communities Business Management and Improvement Plan. Authors Name Designation Contact Details Connor Wilson Performance and Business Support Manager (01738) 475000 ComCommitteeReports@pkc.gov.uk Approved Name Designation Date Barbara Renton Executive Director (Communities) 19 May 2023 APPENDIX 1 • Communities Service Annual Performance Report 2022/23 Page 67 of 222
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ANNEX 1. IMPLICATIONS, ASSESSMENTS, CONSULTATION AND COMMUNICATION Strategic Implications Yes / None Community Plan / Single Outcome Agreement Yes Corporate Plan Yes Resource Implications Financial None Workforce None Asset Management (land, property, IST) None Assessments Equality Impact Assessment None Strategic Environmental Assessment None Sustainability (community, economic, environmental) None Legal and Governance None Risk None Consultation Internal Yes External None Communication Communications Plan None 1. Strategic Implications Community Plan / Corporate Plan 1.1 This report supports the delivery of the Strategic Objectives within Perth and Kinross Community Plan (Local Outcomes Improvement Plan) 2017-2027 and Corporate Plan 2018-2022. 2. Resource Implications Financial 2.1 There are no financial implications arising from this report. Workforce 2.2 There are no workforce implications arising from this report. Asset Management (land, property, IT) 2.3 There are no asset management implications arising from this report. Page 68 of 222
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3. Assessments Equality Impact Assessment 3.1 Under the Equality Act 2010, the Council is required to eliminate discrimination, advance equality of opportunity, and foster good relations between equality groups. Carrying out Equality Impact Assessments for plans and policies allows the Council to demonstrate that it is meeting these duties. 3.2 This report has been considered under the Corporate Equalities Impact Assessment process (EqIA) with the following outcome: (i) Assessed as not relevant for the purposes of EqIA Strategic Environmental Assessment 3.3 The Environmental Assessment (Scotland) Act 2005 places a duty on the Council to identify and assess the environmental consequences of its proposals. no further action is required as it does not qualify as a PPS as defined by the Act and is therefore exempt. Sustainability 3.4 Under the provisions of the Local Government in Scotland Act 2003 the Council has to discharge its duties in a way which contributes to the achievement of sustainable development. Under the Climate Change (Scotland) Act 2009 the Council also has a duty relating to climate change and, in exercising its functions must act: • in the way best calculated to delivery of the Act’s emissions reduction targets; • in the way best calculated to deliver any statutory adaptation programmes; and • in a way that it considers most sustainable. 3.5 The information contained within this report has been considered under the Act. However, no action is required as the Act does not apply to the matters presented in this report. Legal and Governance 3.6 Not applicable. Risk 3.7 Not applicable. Page 69 of 222
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4. Consultation Internal 4.1 The Communities Senior Management Team were consulted during the preparation of this report. External 4.2 Not applicable. 5. Communication 5.1 Not applicable. 2. BACKGROUND PAPERS 2.1 The background papers referred to within the report are: • Communities Business Management Improvement Plan 2022/23 and Annual Performance Report 2021/22 Page 70 of 222
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Appendix 1 6 Page 71 of 222
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Contents Page Introduction Service Annual Performance Report 2022-23 Performance Summary • Giving every child the best start in life and developing educated, responsible, and informed citizens • Promoting a prosperous, sustainable, and in inclusive economy • Supporting people to live independent, healthy, and active lives • Creating a safe and sustainable place for future generations Key Performance Indicators Glossary of Terms 2 4 7 9 13 17 31 Page 72 of 222
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Page | 2 INTRODUCTION We are pleased to present the Annual Performance Report 2022/23 for Communities. As you would expect, the last 12 months have again been challenging for our Service as we continued to respond to the cost-of-living crisis and recovered from the huge disruption caused by Covid-19. As we emerge from the pandemic, we have found ourselves presented with a new set of equally challenging circumstances. The significant rise in the cost-of-living affects everyone in Perth and Kinross but in particular by the most vulnerable people in our communities. We have played a key role in helping to protect people from escalating costs, and as you can read in this report, we have already started a wide range of work to support people who are finding themselves in financial hardship. We allocated £171,000 of Warm Spaces funding, provided by the Council, for 85 groups across Perth and Kinross, these have offered a range of welcoming and supportive venues for people to make use of throughout the winter. Our Housing Service has worked with Perth Citizens Advice Bureau to provide financial assistance to 926 of our tenants who found themselves in financial hardship, minimising the impact of the cost- of-living crisis on these people and their families. We have continued to co-ordinate the response to child poverty across Perth and Kinross through our Local Child Poverty Action Plan. This highlights the major partnership effort across Perth and Kinross to help and support families facing poverty. Our Anti- Poverty Task Force was set up following Council approval in September 2022 and comprises of members from the Third Sector, Police Scotland, NHS Tayside, elected members, the Chief Executive and Senior Officers. Through the Scottish Government Parental Employment Support Fund (PESF), we have also created a small team to support parents into work, and with support if they are currently in low paid employment. The Cross Tay Link Road (CTLR) is the central element of the Perth Transport Futures Project and is the biggest infrastructure project ever undertaken by Perth & Kinross Council. The Cross Tay Link Road will address the long-term transportation needs of the area, promote economic growth and address issues of congestion and pollution in Perth city centre. The project will facilitate investment of £174 million in new commercial space in the area and bring the prospect of more than 5,000 new jobs to the area. Phase 2 of the project is already underway, including the new 3-span bridge across the River Tay, and is due to be completed in 2025. In addition, there are a number of community benefits in place, with a range of activities already undertaken. Council approved our Physical Activity and Sports Strategy in December 2022, and the one-year Action Plan focuses on increasing participation in physical activity and sport to help the positive mental and physical wellbeing of residents of Perth and Kinross. Page 73 of 222
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Page | 3 Perth & Kinross Council was one of the first local authorities in Scotland to support the Scottish Government’s declaration of a Climate Emergency. The Service plays a lead role in supporting the Council’s climate change strategy. We produced our first annual report to Council in September 2022, and it was noted that there has been significant progress across the eight climate action themes. This includes the establishment of a Climate Change Commission which has 25% of its membership made up of young people. We have expanded the range of energy advice services available to residents through our partners Save Cash and Reduce Fuel (SCARF) and also completed the Electric A9 Project. The Council is already investing resources in its revenue and capital budgets to adapt its estate to meet the demands of the climate change agenda. All local authorities will continue to face financial challenges in the future, and so one of our priorities will be to grow collaborative working opportunities with other Councils and partners to unlock efficiencies, share best practice and allow us to offer services to our communities that could otherwise be unachievable in the current financial climate. The Service will continue to play a key role in taking this agenda forward. Despite the major challenges ahead, we continue to look to the future, confident that our dedicated and skilled staff will continue to offer high-quality services that will make Perth and Kinross the best place it can be within the resources at our disposal. Page 74 of 222
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Page | 4 GIVING EVERY CHILD THE BEST START IN LIFE AND DEVELOPING EDUCATED, RESPONSIBLE, AND INFORMED CITIZENS Performance Summary for 2022-23 The cumulative impact of our work during the year has been significant. We have worked to mitigate the impacts of Child Poverty on our children and their families. This has included working across the organisation and with our community partners to provide opportunities to develop skills, maximise income and employment opportunities. This is further supported by the principles and ethos of the Perth & Kinross Offer which has our communities at the heart. Update on Priority Actions 2022-23 Work with other services and partners to mitigate the impact of the cost-of-living crisis on our residents, including preventing homelessness wherever possible. This will include narrow inequalities gaps and demonstrate a consistent and systematic approach to prevention, early intervention, and fairness (Housing & Social Wellbeing Committee) A partnership approach involving Perth and Kinross Council (PKC)'s employability and welfare rights teams, Perth Citizens Advice Bureau (CAB), other third sector and community-based organisations, and private sector employers has resulted in the delivery of employability skills training and support packages, incentivised work placements, employment support including access to childcare, housing, and income maximisation. In addition, an Anti-Poverty Task Force has been set up involving PKC, third and private sector partners to champion the reduction of poverty and associated stigma in Perth and Kinross. Increased focus on supporting parents into work to lift families out of poverty by removing the barriers to employment and maximising income for struggling families. This approach has resulted in • 817 people receiving employability support, and 290 finding or sustaining employment as a result. • The delivery of 6394 childcare places across the public and third sector. • Securing client financial gain of £5.3m by promoting income maximisation and cash first approaches. Members of the Task Force also expanded the use of the Perth Gift Card to Local Supermarkets allowing those eligible the same choice and access to food without stigma in line with the Cash First principles. Since its introduction in April 2018, the Housing Service has spent over £950k and supported 1,725 council tenants through the Tenancy Sustainment Fund. This has helped tenants keep their home and better deal with the cost-of-living pressures. Through the Think Yes budget of £30k, frontline housing staff have been empowered to respond quickly and effectively to support 167 tenants who faced a situation which could impact on their ability to keep their tenancy. A dedicated financial hardship project with CAB has supported 926 tenants in financial difficulties or facing financial hardship to access specialist money advice and to minimise the impact of the cost of living and prevent some from losing their home. The Rattray Community Group was formed as a small post-covid recovery initiative project that encouraged community members to get together in a safe environment after the long months of social isolation due to Lockdown. Page 75 of 222
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Page | 5 Support and assistance through SCARF have helped 495 households and residents be better informed about energy efficiency measures and provided support to help reduce in reducing their energy bills. We have maintained our rents at affordable levels, 9% lower than neighbouring authorities and 23% lower than local Housing Associations. This ensures that 85% of residents can afford the rent based on their income, without taking into account any housing benefit they may receive. We are recognised as sector leading in supporting tenants against mould and damp which has become an issue nationwide due to the cost-of-living crisis. Taking forward the actions within our Local Child Poverty Action Plan (Housing and Social Wellbeing Committee) An anti-poverty task force has been set up following Council approval in September 2022 and has a remit to champion the reduction in poverty levels and associated stigma in Perth and Kinross. The task force comprises of members from the third sector, local business, Police Scotland, NHS Tayside, elected members, the Chief Executive and Senior Council Officers. To date, there have been a number of actions including the mapping of poverty across Perth and Kinross landscape, development of a communications plan, and building relationships to improve collaboration with CAB, Welfare Rights and the third sector. Moving forward, the task force will influence across all sectors and communities to drive activity to address challenges highlighted within the agreed key themes and focus on employability based on clear actions. Through the Scottish Government Parental Employment Support Fund (PESF), we have created a small team of 2 key workers to support parents into work and with progression if they are currently in low paid employment. We provide support with training, skills and job search, and signpost clients to other relevant support including childcare, housing, and welfare rights. We have supported 78 clients who are seeking work, and 30 who are currently in work, with 10 receiving our new Elev8 training grant. Parents can also access other programmes and funding including Skills academies and the Skills Passport. Delivering on the actions within our Rapid Rehousing Transition Plan to ensure our continued success in tackling homelessness (Housing and Social Wellbeing Committee) 2022/23 presented challenging conditions for delivering homelessness services. There was a 21% increase in all homeless presentations. This was due to the demand associated with post-pandemic conditions, cost of living pressures and a reduction in housing supply with less new-build completions and significantly reduced turnover of existing stock. However, despite the ongoing challenges: • Through Home First, we have minimised the number of children living in temporary accommodation and continue to be one of the leading authorities in Scotland in this area. • We have minimised the impact of the increase in homeless presentations on the average duration of homelessness through the continued use of targeted prevention measures. • To support households to quickly move into their new homes, we increased our starter and furniture packs, spending around £50,000 of our allocation of Scottish Government Rapid Rehousing Transition Plan (RRTP) funding to provide essential goods. Page 76 of 222
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Page | 6 • Through our ‘Property Ready’ and ‘Prevention’ Funds, we assisted around 300 people with essential goods to enable them to successfully move into their new home. We launched a new self-serve, online Housing Options service, making it easier for people to access a range of housing options. Void management including the allocation, preparation and relet of our housing stock is a cross service process. To improve our performance and ensure applicants and tenants are rehoused quickly, we have introduced a project planning approach for each individual void property. Tackle inequalities in Coupar Angus. The Community Planning Partnership (CPP) identified Coupar Angus as a pilot for new ways of working which addressed inequalities in the town. (Additional focus area) (Housing and Social Wellbeing Committee) We worked with Community Planning Partners and commissioned Iconic Consulting to develop a new Town Centre Action Plan for Coupar Angus to address priority issues including health and wellbeing, poverty, social isolation, and employability. We also supported Forward Coupar Angus to stabilise its governance and financial position and secure/protect community assets for the future. Through the Place Based Investment Fund, we have supported the creation of the new Strathmore Community Hub which is proving to be a popular asset for the local community. Since opening in September 2022, it has already hosted over 90 events, with over 300 hours of bookings secured, including weekly soup lunches and a community fridge. Provide adult learning opportunities to increase employability and participation (Additional focus area) (Housing and Social Wellbeing Committee) Culture and Communities service and the Adult Learning Partnership engaged with 569 learners from April – December 2022, including refugees and people seeking asylum and those experiencing substance misuse or mental health issues. Thematic Review of Community Learning and Development by Education Scotland (Housing and Social Wellbeing Committee) In Spring 2022, Education Scotland conducted a thematic review of the role played by Community Learning and Development (CLD) in Perth and Kinross to support post-Covid recovery in communities and how partnership practice was evolving in response. The review highlighted significant strengths in relation to supporting/ growing volunteer capacity, continued through the PKC Volunteer Upskilling Fund which enabled volunteers and community groups to access a wide range of training opportunities. An area highlighted for improvement was our approach to volunteering. As such, we have progressed this and are currently working on developing a consistent approach to volunteering across Perth and Kinross Council. Page 77 of 222
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Page | 7 PROMOTING A PROSPEROUS, SUSTAINABLE, AND IN INCLUSIVE ECONOMY Performance Summary for 2022-23 The impact of our work during 2022/23 has been to sustain businesses and communities through the provision of timely, comprehensive advice, guidance, and financial support by mitigating as far as possible the continuing impacts of the pandemic, addressing the equalities gap, maximising income, and keeping rents affordable in order to support both individuals and the local economy. Update on Priority Actions 2022-23 Support business to grow and attract investment and higher value jobs into Perth & Kinross as outlined within the Economic Wellbeing Plan (Environment, Infrastructure & Economic Development Committee) We developed the Outline Business Case for Perth Eco-Innovation Park at Perth West to attract Scottish and UK Government’s funding and lever private investment. The Project aims to support place based and business innovation within the Clean Growth sector to create higher value jobs. The Project is part of Tay Cities Clean Growth cluster initiative. Council has approved funding of £10 million towards the cost of delivering enabling works for Phase 1 of the Perth Eco Innovation Park. We supported the deployment and use of digital fibre network to support business innovation and growth. We have also worked with the Business Gateway contractor, Elevator, to deliver a series of business accelerators with a focus on sustainable growth and resilience, “Winter Warmers” and “Build, Run, Scale,” and “Big Ideas,” a programme of entrepreneurial challenges in conjunction with Perth College UHI. We delivered financial assistance schemes to businesses including the Market Development Grant aimed at internationalising businesses, the Micro Enterprise Fund, the Green Capital Recovery Fund, and Business Crowdfunder. Ensuring delivery of key infrastructure projects to support the local economy including the Cross Tay Link Road and the redevelopment of Perth City Hall as a cultural attraction (Environment, Infrastructure & Economic Development Committee) Stage One of the Cross Tay Road Link (CTLR) was successfully completed in September 2022, enabling Stage Two of the contract to proceed. Works are progressing well with completion estimated at Spring 2025 as per the current programme. A programme of community benefits is also in place with a significant number of activities already undertaken. The Broxden – Low Carbon Transport Hub project started on site at the Broxden Park & Ride site in October 2022. Once fully completed there will be 41 EV charging spaces available offering a mix of charging speeds to suit the diverse usage patterns of EV users. The EV chargers will be supported by on-site solar renewable energy generation and battery system, managed, and controlled by a smart energy management system to provide a sustainable EV charging hub that will reduce carbon emissions and energy costs for the council. We continued to deliver the new Perth Museum project scheduled to open in spring 2024. The long-term vision for active travel is to make walking or cycling the most popular choice for shorter everyday journeys, by making it safer, easier, and available to everyone. During 2022/23 we invested £1,012,000 in Page 78 of 222
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Page | 8 active travel infrastructure to encourage residents and visitors to walk and cycle in Perth and Kinross. Scotland’s Road Safety Framework to 2030 sets out a long-term vision for road safety where there are zero fatalities and injuries on Scotland’s roads. During 2022/23 we invested over £200,000 in Vehicle Activated Signs to encourage drivers to reduce their speed on the roads in Perth and Kinross. Through additional Council investment the road condition continues to improve year on year. Since 2019, 159km of road is in a better condition than previously, a net improvement of 6.4%. A particular focus on city and town regeneration as well as employability and skills to support income equality (Environment, Infrastructure & Economic Development Committee) 36 grants were approved for city and town centre retail/hospitality premises improvements through the Open for Business Fund, typically for façade enhancements. Additionally, 13 projects were approved through the Adapt Your Property Fund to repurpose vacant premises into other commercial or residential use, and the Vacant Property Feasibility Fund has provided support to 20 projects. Through the Scottish Government funded Place Based Improvement Programme grant support was approved for Civic Space at Ropemakers’ Close in Perth, Rannoch Hub, River Tay Way hub at Aberfeldy, demolition of the Clachan and Quality Café in Perth. Ongoing support is being provided to the Tayside YMCA for the Y Centre regeneration project including management of Regeneration Capital Grant Fund (RCGF) funding, additional Council revenue funding and sourcing of further funding support to bridge the remaining shortfall. The Vacant Property Team were able to support the £1.5m project for 23- 31 South Methven Street which has brought approximately 900m2 of disused commercial space back into use, whilst directly creating 32 high skilled jobs. Employability & Skills Actions delivered include: • Employer Recruitment Incentives – creating 86 jobs (over last 2 years 136 places created with nearly 80% of individuals moving into permanent employment). • 38 Long term unemployed clients supported into 6 month paid work placements. • Created an £800K Employability Challenge Fund – 8 projects delivering across a wide range of skills initiatives and employability support. • A pilot CodeClan Youth Academy in March 2023 – supported 6 young people to develop coding and software development skills. We co-ordinated the delivery of the Volunteer Upskilling Fund, enabling 593 volunteers to access training and learning to build their individual and groups’ capacity. We worked in partnership with Jupiter Artland to regenerate a city centre space that was visited by 8000 people over 10 weeks, including 425 school children who were given the opportunity to follow a creative career path. Page 79 of 222
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Page | 9 SUPPORTING PEOPLE TO LIVE INDEPENDENT, HEALTHY AND ACTIVE LIVES Performance Summary for 2022-23 We have supported people to live independent healthy lives by working together with our partners and communities across a range of activities to improve and prioritise what matters most to our communities. We continue to minimise the impact and stigma of homelessness as well as listening to seldom heard voices to inform how we develop and improve our services. Update on Priority Actions 2022-23 Work with other services and partners to mitigate the impact of the cost-of-living crisis on our residents, including preventing homelessness wherever possible (Housing & Social Wellbeing Committee) We have continued to support people from Ukraine to settle into accommodation and people seeking asylum. To date: • We continue to work with our communities to welcome over 450 people from Ukraine. • 116 children have enrolled in our local schools and English for Speakers of Other Languages (ESOL) provision has been expanded to provide additional capacity to meet growing demand. We continue to work with the third sector and community groups to provide support to 109 people seeking asylum. A dedicated Central Arrears Team was formed in March 2023 to take a person-centred approach to supporting tenants in financial difficulties. The Team will not solely pursue or clear arrears, but to work with the tenant to look at all the ways to maximise their finances and ensure they are getting all the support they require to help them sustain their tenancy. Delivering the good food strategy to support the activities involved in producing, processing, transporting and consuming food (Housing & Social Wellbeing Committee) In Spring 2022, our Good Food Partnership achieved Sustainable Food Places membership and a funding application for a Sustainable Food Places Coordinator Grant was successful. In February 2023, a regional meeting was held to advance the opportunities to collaborate on Good Food across the Tayside region. Work will take place throughout 2023 in conjunction with communities and partners to developing a vision and scope for the Good Food Strategy & Action Plan including a Good Food Charter for Perth & Kinross. Increasing the quality and quantity of affordable houses and housing options in both urban and rural areas (Housing & Social Wellbeing Committee) We delivered 203 affordable homes within Perth and Kinross during 2022/23. Of these: • 130 Social Rent (Council and Housing Association) • 49 Mid-Market Rent (MMR) • 24 Low-Cost Home Ownership (LCHO) We met our Local Housing Strategy (LHS) target of 200 Affordable Homes this year. Over the past 5 years, 1,185 affordable homes have been delivered in Perth and Kinross. Through the Empty Homes Initiative, 32 properties were assessed and grant funding of over £208,000 was provided. This resulted in 18 long-term empty properties being brought back into use as affordable housing with the rent fixed at the Local Housing Allowance rate for 5 years as part of the Page 80 of 222
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Page | 10 grant conditions. These properties have been let to people who may otherwise be reliant on social housing including two families fleeing the conflict in Ukraine. We also rehoused 158 households through the Rent Bond Guarantee Scheme (RBGS) by providing a Bond Guarantee in lieu of a deposit and therefore removing one of the key barriers to entry to the private-rented sector. Revise our Local Housing Strategy in line with the key national priorities within Housing to 2040 (Housing & Social Wellbeing Committee) Through close partnership working and consultation with local and national housing stakeholders, communities and partner organisations over the last two years, the Local Housing Strategy has been revised, updated, and approved by Committee on 15 March 2023. Work to progress the key outcomes of the strategy are currently being monitored through a local multi-agency delivery group. Work in partnership with the Health & Social Care Partnership to progress actions within the Housing Contribution Statement and Local Housing Strategy to provide appropriate models of accommodation and support (Housing & Social Wellbeing Committee) Our successful Independent Living Panel ensures people with particular housing and support needs have their needs assessed through a multi- agency approach. The right solutions enable them to live independently within their own community. The panel also ensures that future accommodation needs are factored into the Strategic Housing Investment Plan. A range of independent living accommodation projects were progressed for people with particular housing and support needs. A further two projects have completed, providing 12 units of bespoke accommodation with communal facilities in Rattray. Through our Older Persons Wellbeing Project, older people living in the community are provided with tailored support to help address issues such as loneliness and isolation and support to access events and activities within our sheltered housing complexes. Work is underway to expand the Project to other areas of Perth and Kinross. Support the health and wellbeing of our residents by developing our new Sport and Activity Strategy, and our commissioning arrangements with Live Active Leisure (LAL) and with the Health and Social Care Partnership with a focus on wider wellbeing and tackling health inequalities (Housing & Social Wellbeing Committee) Following extensive community consultation, a new Physical Activity and Sports Strategy produced, and draft approved by Full Council Dec 2022. This strategy and 1 year action plan focuses on increasing participation in physical activity and sport to support positive mental and physical wellbeing. Final approval of the Strategy will be sought from Council in May 2023. Children and young people who play outdoors often have better social networks, are more confident and are more involved in their local communities. During 2022/23 over £350k was invested in 3 upgrades of playparks and designs and consultation were under way for a further four upgrades with joint funding from community groups, the Council, and Scottish Government. The Council manages 146 play parks throughout Perth and Kinross and has a 15-year rolling refurbishment plan working in Page 81 of 222
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Page | 11 partnership with communities wherever possible to develop the designs and raise funding Food Inspections and sample visits (Housing & Social Wellbeing Committee) Officers conducted food law inspections to ensure that Perthshire food businesses handle, store and produce food hygienically and in line with National Food Law. Inspections also cover compliance with labelling, presentation, composition of food and the provision of correct allergen information to customers and an opportunity to provide advice and support to businesses. During 2022/23, the Food Team conducted 1,059 inspections, visits, and sample visits to food establishments in Perth and Kinross. An audit of our processes was undertaken by Food Standards Scotland which identified that these are undertaken to a high standard. Page 82 of 222
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Page | 12 CREATING A SAFE AND SUSTAINABLE PLACE FOR FUTURE GENERATIONS Performance Summary for 2022-23 The development of our Climate Change strategy and action plan together with the establishment of our Commission ensures that we are acting now to protect our environment for future generations. This strategy brings together several service areas to ensure that, as a Communities Service, we can influence and deliver on our contribution to mitigate the impact of climate change such as more walking and cycling friendly routes and worked to reduce, reuse, and recycle more of our waste. This year has seen more engagement with communities providing funding, assets, and practical support to develop stronger communities and support the Perth and Kinross Offer. Update on Priority Actions 2022-23 Continue to deliver the Climate Change Strategy for Perth and Kinross, which sets out our plans and actions to lower our carbon usage and meet our obligations on upcoming regulatory requirements (Climate Change and Sustainability Committee) We improved our Climate Change governance by creating the Climate Change and Sustainability Committee and the Climate Change Commission with over 25% membership of the latter being by young people. We engaged widely with residents, communities, young people/schools, and businesses and launched a dedicated website that is a one-stop shop for climate change information. This has already received over 14,000 views as well as launching dedicated social media channels; Perth and Kinross Youth Climate Conference in November 2022, was a first step in meaningfully engaging with school pupils. Successful engagement with large employers Scottish and Southern Energy (SSE), Aviva, Stagecoach, Highland Spring and Binn Group has identified key areas of collaboration (transport, energy, waste, skills, and jobs). Through continued delivery of Flood Risk Management Cycle 1 projects, we are reducing the flood risk to our communities and infrastructure, a new bridge scour assessment programme has started, focused on helping to proactively reduce the risk of future bridge damage and the associated impact to our communities. During 2022/23, the Heat Energy Advice Team (HEAT), in partnership with SCARF received 1,104 enquiries, carried out 246 home visits and 752 telephone consultations. As a result of these contacts, residents and tenants were provided with information on ways to save money on fuel bills and advice on how to reduce their carbon footprint. Good progress is being made to ensure the Council remains on track to ensure all council properties meet an EPC (Energy Performance Certificates) Band D or higher by 2025. Out of the total housing stock, only 500 properties require some work to meet this standard. Funding of £4M was secured from the Scottish Government to replace the existing chalets with new energy efficient chalets at Double Dykes. Developing a mobility strategy (Environment, Infrastructure & Economic Development Committee) Page 83 of 222
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Page | 13 Mobility Strategy project commenced in 2022. First formal stage, the Main Issues Report, was approved at Committee in March 2023. Developing an electric vehicle strategy (Climate Change and Sustainability Committee) The Electric A9 Project has been completed in partnership working with Transport Scotland to provide a strategic corridor of rapid electric vehicle (EV) chargers. This was designed to give a 20% increase in public EV charger capacity, which will help give drivers the confidence/impetus to transition to electric vehicle EVs. These have been strategically placed in communities near the A9 to help boost trade and footfall within these areas. Consultancy study for EV charging strategy commenced in late 2022. This is due to complete in April 2023, subject to Transport Scotland and Scottish Futures Trust response. Enhancing our waste management arrangements (Environment, Infrastructure & Economic Development Committee) (Climate Change and Sustainability Committee) The Council successfully secured £2.72m of capital investment from the Scottish Government Recycling Improvement Fund (RIF) in 2022. This funding ensures that the Council delivers a more equitable service for residents and that our kerbside recycling service is compliant with the Scottish Charter for Household Recycling. It will also have the following benefits: • increase the quantity of recyclable material captured which increases recycling rate, reduces waste arisings, and contributes to the net zero agenda by reducing carbon emissions through capturing food and plastics • increased participation in recycling and positive behavioural change by residents • improvement in recycling material quality (by moving a to twin stream service where card/paper are separated from other materials) The first project, using RIF, was successfully rolled out in November 2022 when dry mixed recycling and food waste communal bins were installed at Perth city centre residual waste bin hubs. This has provided a recycling service to over 1000 households which have never previously had access to recycling services. Since summer 2020, the ‘Stick to the Six’ Campaign has proven successful by bringing the contamination rate down from 28.52% at its peak in November 2020 to an average of 19.38% in 2022. The Stick to the Six campaign was nationally recognised and awarded silver at the APSE (Association for Public Service Excellence) Striving for Excellence Awards in the waste and recycling category in May 2022. Improving our biodiversity approaches (Climate Change and Sustainability Committee) We supported actions to improve our biodiversity through Tayside Local Biodiversity Action plan and other initiatives e.g., Perthshire Nature Restoration Fund. successful outcomes from the Nature Restoration Fund – Year 1 both across the Council Estate and within communities including the Kinross Raingarden Project, which won the Construction Industry Research and Information (CIRIA) award for ‘Best Community Sustainable Drainage (SuDS) project’. Blairgowrie is Scotland’s First Biodiversity Town. Page 84 of 222
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Page | 14 To tackle the twin challenge of biodiversity loss and climate change, we have undertaken changes in our grassland management. The biodiversity monitoring demonstrated that both approaches produced enhanced biodiversity results. The consultation with the community was positive for the majority of responses: 73.8% were in favour of the proposals. The next step is to seek committee approval to extend the areas of “No mow” and areas managed for biodiversity and to investigate how we can make this an environmentally and financially sustainable method of managing our greenspaces. Inspection of Perth Crematorium by the Federation of Burial and Crematorium Authorities (Environment, Infrastructure & Economic Development Committee) An inspection of Perth Crematorium was carried out by the Federation of Burial and Crematorium Authorities (FBCA) in June 2022 which received a compliance score of 98.4% which is higher than the industry average of 96%. The inspection highlighted strengths in all areas including the grounds, premises and facilities, service, staff, and administration. Page 85 of 222
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Page | 15 KEY PERFORMANCE INDICATORS GIVING EVERY CHILD THE BEST START IN LIFE & DEVELOPING, RESPONSIBLE AND INFORMED CITIZENS Culture & Communities Indicator (Data covering to year end unless otherwise stated) Performance Target 2020/21 2021/22 2022/23 2022/23 Percentage of residents satisfied with local libraries (Environment, Infrastructure & Economic Development Committee) 78% Not Collected Due to Covid 95% 82% Number of library visits, in person and online (Environment, Infrastructure & Economic Development Committee) 3,469,000 1,062,804 1,280,912 350,000 Comments on Performance for 2022-23 and Target There has been a 91.7% increase in library footfall this year when compared to the previous year 2021/22. This shows the sign of a strong recovery. This picture is mirrored across many library authorities in Scotland as people have changed habits or seek their reading material and information elsewhere. The satisfaction levels with the library visits has increased by 17% since 2020/21. Numbers of adult learners supported to improve their employability or digital skills (this includes commissioned services via the Adult Learning Partnership) (Environment, Infrastructure & Economic Development Committee) 110 279 780 350 Comments on Performance for 2022-23 and Target As of December 2022, there were 780 adult learners supported to improve their employability or digital skills. This is significantly higher than the previous two years combined, largely due to the limitations in place during the pandemic. Housing Indicator (Data covering to year end unless otherwise stated) Performance Target 2020/21 2021/22 2022/23 2022/23 Number of families presenting as homeless (Housing and Social Wellbeing Committee) 83 107 141 Regulatory guidance advises the setting of Page 86 of 222
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Page | 16 targets would not be appropriate Number of overcrowded households (Housing and Social Wellbeing Committee) 116 117 123 110 Comments on Performance for 2022-23 and Target The total of 141 presentations from families in 2022/23 is an increase in presentations of 32% compared to the previous year. It should be noted that presentations from families in particular were suppressed during the pandemic and cost of living pressures are contributing to an increase in relationship breakdowns. Our Housing Support Service aims to prevent homelessness through the provision of person-centred housing support. The number of overcrowded households between 2020/21 and 2022/23 has remained fairly static. Monitoring arrangements are in place, and we make every effort to reduce overcrowding. Specific factors, including property types and areas of choice impacts on the allocations process. In turn, overcrowding can only be reduced when there is appropriate housing available to allocate. There is no national average available for this indicator. PROMOTING A PROSPEROUS, INCLUSIVE AND SUSTAINABLE ECONOMY Housing Page 87 of 222
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Page | 17 Planning & Development Indicator (Data covering to year end unless otherwise stated) Performance Target 2020/21 2021/22 2022/23 2022/23 Economic impact of events supported by the Council (Environment, Infrastructure & Economic Development Committee) Awaiting year end data 0 0 N/A £14m Number of new businesses started up with support from Business Gateway (Environment, Infrastructure & Economic Development Committee) 267 220 250 300 No. of businesses supported by a growth programme (Environment, Infrastructure & Economic Development Committee) 33 37 18 (Jan 23) 60 Indicator (Data covering to year end unless otherwise stated) Performance Target 2020/21 2021/22 2022/23 2022/23 Gross arrears as a % of gross rent due for the reporting year (Housing and Social Wellbeing Committee) 10.75% 10.69% 11.45% 8.4% Rent collected as a % of the total rent due in the reporting year (Housing and Social Wellbeing Committee) 96.91% 99.08% 98.6% 98.9% Comments on Performance for 2022-23 and Target Rent arrears are continuing to rise in Perth and Kinross and this trend is reflected nationally. The Scottish local authority average for this indicator was 8.67% in 2021/22. We continue to monitor each of our locality offices performance to ensure that the collection rate is maximised and to identify any requirement for changes in practice or resources across our four geographical localities. As a result of this close monitoring, we are piloting a centralised arrears team to focus on arrears and to provide tailored support and assistance to tenants, in partnership with locality teams. The Scottish local authority average for this indicator was 98.6% in 2021/22 for rent collection, national data for 2022/23 is not yet available. Page 88 of 222
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Page | 18 Indicator (Data covering to year end unless otherwise stated) Performance Target 2020/21 2021/22 2022/23 2022/23 Area of available Serviced business land (Ha) (Environment, Infrastructure & Economic Development Committee) 32.05 37.9 N/A 14.9 Comments on Performance for 2022-23 and Target Although events resumed post Covid the sector was still responding to the impact of restrictions with a number of traditionally recurring events not proceeding in 2022. Events supported in 22/23 included activities to mark the Platinum Jubilee and Winter Festival. The Royal National Mod generated an estimated economic impact of £1.8 million but it has not been possible to determine an overall impact figure for 22/23. Although the start up target for Perth & Kinross has not been met P&K does have the highest number of the three Tayside local authorities. The Business Gateway contract was retendered by Dundee City Council on behalf of the three Tayside councils in late 2022 for the period from 1 April 2023 to March 2025. It is intended that UK Shared Prosperity Fund allocations will be used to expand the BG service provision over this time in the same was as ERDF funding was and with particular reference to enhanced expert help and community outreach. Support for start up micro enterprises / self employed individuals and social enterprises in rural Perth & Kinross is also provided by Growbiz which was supported financially by the Council in 22/23 to expand its provision. We commissioned an Employment Land and Property market study to inform our Employment Land Strategy which was completed in June 2022. The findings of this study were used to develop the future Perth and Kinross Local Development Plan and the Council’s Property Investment Strategy. Note: Data for 2023 will not be available until September 2023 after land audit has been completed. Perth City Centre Footfall (Nos) % above the national level (Environment, Infrastructure & Economic Development Committee) 16.4% -10.2% -4.5% 4% % of vacant retail units in Perth City Centre (Environment, Infrastructure & Economic Development Committee) 11.7% 9.9% 10.5% 8.2% Comments on Performance for 2022-23 and Target Page 89 of 222
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Page | 19 Indicator (Data covering to year end unless otherwise stated) Performance Target 2020/21 2021/22 2022/23 2022/23 The city centre footfall in Perth has improved during 2022/23 with a year-to-date figure of 653,217 visitors which is up 5.3% on the previous year. Improvements are ongoing to ensure the city centre footfall captured is reflective and new counters are being installed in May at the City Hall and near Costa Café. These areas are where the highest footfall occurs on the City Centre. The % of vacant retail units increased compared to the previous year and is below set target for 2022/23. During 2022-23 the Council continued to provide further support to retail and other businesses through a range of measures including business advice, destination promotion via improvement to the Perth city website, media, and digital channels: employment and business support; digital incentives and platforms providing current market/consumer intelligence. % of working age population unemployed, based on the claimant count (Environment, Infrastructure & Economic Development Committee) 4.6% 2.7% 2.3% 1.0% No. of unemployed people supported into work as a result of Employability programmes supported by the Housing & Environment service (Environment, Infrastructure & Economic Development Committee) 246 290 N/A 500 Comments on Performance for 2022-23 and Target The % of working age population unemployed has reduced since 2020/21, the 2022-23 figure is above our set target but below the Scottish Local Authority Average of 3.2%. In 2022/23, the Skills and Employment Initiatives team have delivered an enhanced menu of service offers to unemployed residents and local businesses. With emphasis placed on new job creation, there has been impetus for micro and small businesses to create brand new roles for our unemployed clients. In addition to this we have enhanced our skills intervention offerings. This means that unemployed people and/or those seeking self-employment have greater access to support funds to enhance their skillset/qualifications to aid progression. In 2022/23 we developed a Local Employability Partnership Delivery Plan focussing on key improvements in delivery and partnership working. We have also launched an Employability Challenge Fund to provide access to the Scottish Government NOLB (No One Left Behind) funding to a wider range of partners including the voluntary sector. Note: Data for unemployed people supported into work is not yet available. Source for data is taken from the SLAED return, due date July 2023. Page 90 of 222
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Page | 20 Culture & Communities Indicator (Data covering to year end unless otherwise stated) Performance Target 2020/21 2021/22 2022/23 2022/23 Percentage of residents satisfied with local museums and galleries (Environment, Infrastructure & Economic Development Committee) 74% N/A 95% 80% Number of visits to museums that are funded, or part funded, by the council (Environment, Infrastructure & Economic Development Committee) 108,777 258,884 291,628 200,000 Comments on Performance for 2022-23 and Target The total year’s footfall is down by 24.1% compared to 2019-2020 (pre - COVID). Direct comparisons are not like for like on the full year due to changes in opening hours and a closure of galleries and exhibitions at the end of December ’22 for refurbishment and building works to transform the venue into the new Perth Art Gallery, opening again later in 2023. Alyth Museum was redeveloped for the summer season as the Cateran Eco-museum Hub and attracted 1080 visitors, a 20% increase over the 2019 figure. Perth Museum and Art Gallery (PMAG) was used in October during the National Mod in Perth, with PMAG being used as the BBC studio for the event. The annual target has been achieved and there has been a 9.5% increase in online visits compared to 2021-2022. SUPPORTING PEOPLE TO LIVE INDEPENDENT, HEALTHY AND ACTIVE LIVES Housing Indicator (Data covering to year end unless otherwise stated) Performance Target 2020/21 2021/22 2022/23 2022/23 % of residential and business premises with access to Next generation broadband (Environment, Infrastructure & Economic Development Committee) 86.2% 86.3% 88.3% 100% Comments on Performance for 2022-23 and Target The percentage of residential and business properties with access to superfast broadband (>30mbps) has increased by 2% during 2022/23 (88.3%). Whilst this is below the national average of 95.4%, the rurality of Perth and Kinross does impact on the performance. 96.51% of all homes and business premises in Perth and Kinross have access to partial or full fibre broadband as of March 2023. Page 91 of 222
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Page | 21 Indicator (Data covering to year end unless otherwise stated) Performance Target 2020/21 2021/22 2022/23 2022/23 Number of housing options interviews completed (Housing and Social Wellbeing Committee) 2,297 2,214 2,663 Regulatory guidance advises the setting of targets would not be appropriate Number of households presenting as homeless (Housing and Social Wellbeing Committee) 670 610 737 Regulatory guidance advises the setting of targets would not be appropriate Number of applicants assessed as homeless (Housing and Social Wellbeing Committee) 550 520 566 Regulatory guidance advises the setting of targets would not be appropriate Comments on Performance for 2022-23 and Target There has been an increase of 449 housing options interviews completed (20%). The number of households presenting as homeless increased by 21% compared to the previous year. This follows several years of consecutive reductions in homeless presentations. The number of applicants assessed as homeless has remained stable with the increase being linked to the overall increase in presentations. In the 3rd and 4th quarters of 2022/23, we increased the proportion of allocations to homeless applicants in response to the increased demand and reduced supply of permanent accommodation. Indicator (Data covering to year end unless otherwise stated) Performance Target 2020/21 2021/22 2022/23 2022/23 Number of people who slept rough the night before their homeless application (Housing and Social Wellbeing Committee) 24 36 39 Regulatory guidance advises the setting of targets would not be appropriate Average days in temporary accommodation (All types) (Housing and Social Wellbeing Committee) 79 51 62 75 % of allocations to homeless households in permanent settled accommodation (Housing and Social Wellbeing Committee) 46% 35% 43% 50% Comments on Performance for 2022-23 and Target Page 92 of 222
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Page | 22 During 2022/23, the average number of days in temporary accommodation has increased compared to the previous year. This is partly due to the supply and demand pressures associated with an increase in presentations and a reduction in vacancies and partly due to a small number of complex cases and the reduced throughput of available properties. The target for the proportion of allocations to homeless applicants is ‘indicative.’ The Home First model is designed to be flexible to respond to changes in demand and supply. The 43% allocations figure reflects the reduction in the number of homeless people waiting for an offer of housing rather than a failure to meet a target. In the 3rd and 4th quarters of 2022/23, we increased the proportion of allocations to homeless applicants in response to the increased demand and reduced supply of permanent accommodation. Indicator (Data covering to year end unless otherwise stated) Performance Target 2020/21 2021/22 2022/23 2022/23 % of tenants satisfied with the overall service provided (Housing and Social Wellbeing Committee) 82.9% 82.2% 78.4% 95% % of tenants satisfied with opportunities given to them to participate in the landlord's decision making (Housing and Social Wellbeing Committee) 75.40% 76.3% 72.0% 99% Page 93 of 222
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Page | 23 Culture & Communities Indicator (Data covering to year end unless otherwise stated) Performance Target 2020/21 2021/22 2022/23 2022/23 Numbers of community groups supported to increase their capacity (Environment, Infrastructure & Economic Development Committee) 270 236 343 270 Comments on Performance for 2022-23 and Target This figure includes support for groups to apply for Community Investment Funding, food insecurity funding and developing community action plans. For 22/23, additional funding was available for volunteer upskilling and warm spaces, increasing the number of groups the service worked with. Indicator (Data covering to year end unless otherwise stated) Performance Target 2020/21 2022/23 2022/23 2022/23 Comments on Performance for 2022-23 and Target There has been a decline in tenant satisfaction in the past two financial years. Landlords are required to carry out satisfaction surveys every three years, and the Scottish Housing Regulator has noted that the pandemic played a part in the reduction of the satisfaction levels nationally in 2021/22. Between June 22 and March 23, we conducted 1,190 satisfaction surveys using face-to-face and telephone methodology. We are continuing to conduct monthly surveys in 2023/24 to gain useful feedback from tenants around what matters to them and how we shape our service in the future. Local Authority Average for satisfaction with the overall service 2021/22 was 82.2% Local authority average for satisfaction with opportunities to participate 2021/22 was 79.3% Average time (in days) taken to complete approved applications for medical adaptations in the reporting year (Housing and Social Wellbeing Committee) 44.72 40.58 57.42 55 Comments on Performance for 2022-23 and Target The average time taken to complete medical adaptations has increased from 40.58 days in 2021/22 to 57.42 days in 2022/23. The increase is due to a waiting list that was carried forward from 2021/22. A review of the procedures has been undertaken in order to improve performance. The Scottish average for this indicator is 53.6 days for 2021/22 Page 94 of 222
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Page | 24 Indicator (Data covering to year end unless otherwise stated) Performance Target 2020/21 2021/22 2022/23 2022/23 Percentage of residents satisfied with local leisure facilities (Environment, Infrastructure & Economic Development Committee) 74% Not collected due to Covid 58% 70% Number of attendances to pools, indoor and outdoor sport, and leisure facilities (Environment, Infrastructure & Economic Development Committee) 63,000 555,188 1,059,466 875,000 Comments on Performance for 2022-23 and Target Activities include an uplift in swimming at Perth Leisure Pool, due to the Olympia Pool in Dundee being closed throughout the year, accounting for approx. 7% impact on total customer generated income. Fitness Membership is continuing to slowly increase with total membership numbers at the end of March increasing to 3,709. Most venues have returned to be fully operational and attendance levels are sitting at approx. 87% of pre-covid levels. The industry average sits approx. 80-90%, so this is a positive position to report upon. Regarding the decrease in satisfaction levels, customer surveys have shown issues with cleanliness, particularly in Perth Leisure Pool, which is mainly due to the older age of the building, and general wear and tear, which is causing an appearance of uncleanliness. The surveys have also shown customer dissatisfaction with the amount of parking available at Bells Sport Centre. The options to resolve this issue have been restrictive however Live Active Leisure have removed some grass areas to increase the number of spaces slightly. Additional bike racks have also been added to encourage cycling as a mode of transport to the centre. CREATING A SAFE AND SUSTAINABLE PLACE FOR FUTURE GENERATIONS Environment Indicator (Data covering to year end unless otherwise stated) Performance Target 2020/21 2021/22 2022/23 2022/23 Municipal waste collected that is recycled or composted (%) (Environment, Infrastructure & Economic Development Committee) 47.4% 46.9 47.2 (Apr to Dec 22 unvalidated) 65% Emissions from council properties (tonnes CO2) (Environment, Infrastructure & Economic Development Committee) 10,119 10,751 9,224 13,000 Vacant residential / commercial premises brought back into use 93 134 66 135 Page 95 of 222
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Page | 25 Indicator (Data covering to year end unless otherwise stated) Performance Target 2020/21 2021/22 2022/23 2022/23 (Environment, Infrastructure & Economic Development Committee) Comments on Performance for 2022-23 and Target There has been a slight increase in the percentage of waste that is recycled, however, the latest 2022/23 figure is below the target of 65% Emissions reduced due to extension of Building Management System (BMS) controls to further sites and upgrades of existing heating controls, amendment to heating calendar, energy efficiency measures/works, data monitoring and associated energy management, a reduction in the conversion factor for electricity and generally mild weather. Throughout 2022/23 the Vacant Property Team operated with a reduced capacity. This directly correlated to a reduced ability to be proactive in vacant property work which in turn has resulted in a reduced number of vacant premises brought back into use compared to previous years and the target of 135. Going forward the capacity in the team has been restored which should result in targets being achieved in future years. Housing Indicator (Data covering to year end unless otherwise stated) Performance Target 2020/21 2021/22 2022/23 2022/23 No of new publicly available social housing units including buy backs, conversions, and empty homes conversions (Housing and Social Wellbeing Committee) 246 310 203 200 Comments on Performance for 2022-23 and Target The number of new publicly available social housing units increased from 246 in 2020/21 to 310 in 2021/22. We delivered 203 affordable homes within Perth and Kinross during 2022/23. Of these: • 130 Social Rent (Council and Housing Association) • 49 Mid-Market Rent (MMR) • 24 Low-Cost Home Ownership (LCHO) Overall % of new tenancies sustained for more than a year (Housing and Social Wellbeing Committee) 86% 87.4% 93.79% 91% Page 96 of 222
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Page | 26 Indicator (Data covering to year end unless otherwise stated) Performance Target 2020/21 2021/22 2022/23 2022/23 Comments on Performance for 2022-23 and Target We have continued to focus on tenancy sustainment during 2022/23 which has resulted in improved performance in line with our target. The national average for this figure in 2021/22 was 91%. Average length of time taken (hours) to complete emergency repairs (Housing and Social Wellbeing Committee) 2.76 2.97 4.0 4.0 % Tenants satisfied with the repairs service (Housing and Social Wellbeing Committee) 97.5% 98.8% 97.5% 94% Indicator (Data covering to year end unless otherwise stated) Performance Target 2020/21 2021/22 2022/23 2022/23 Comments on Performance for 2022-23 and Target Emergency repairs performance is currently in-line with our BMIP target of 4 hours. This figure is therefore likely to improve as this information when year-end information is received, and the final figure will be reported in our ARC return. In comparison during 21/22 our emergency repairs performance was 2.97 hours and 2.76 in 20/21. Since the pandemic, the industry has struggled with delays and cost increases for some building materials and a reduction nationally in skilled trades leading to difficulties in filling vacancies. These issues have affected our inhouse trades team and our external contractors. Despite delays in the completion of some repairs as a result of national delays, cost increases for some materials and a reduction in skilled trades personnel, satisfaction with repairs service delivery has remained high at 97.5% and is comparable to recent years). We have continued our efforts to encourage the online reporting of repairs and have increased our online guidance videos for minor common repairs. In general, we have also increased communications with tenants using our email response and social media to update customers on performance and service delivery updates. Average calendar days to re-let properties (Housing and Social Wellbeing Committee) 32.8 44.6 42.81 29 % of rent due in the year that was lost due to voids (Housing and Social Wellbeing Committee) 1.11% 1.33% 1.06% 0.9% Comments on Performance for 2022-23 and Target Page 97 of 222
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Page | 27 Performance in re-letting properties has improved compared to the previous year, despite a reduction on performance nationally. Local Authority average in 2021/22 to re- let properties was 59.4 days. Factors impacting performance in the past year have included the national shortage of skilled tradesmen and issues with utilities companies which has been raised nationally. We now have a service level agreement which commenced in February 2023 and should help with improving void turnaround times. During 2022/23, we also improved our performance in relation to % of rent lost due to voids. The national average for the % of rent lost due to voids in 2021/22 was 1.6%. % of properties meeting the EESSH (Energy Efficiency Standard for Housing) (Housing and Social Wellbeing Committee) 82.2% 82.0% N/A 100% Comments on Performance for 2022-23 and Target During 2022/ 23, we focused on addressing the SHQS failures in relation to EESSH by making improvements mainly through our ‘energy efficiency’ programme and ‘heating/insulation’ programme. Note: Data will be available mid-May 2023. Page 98 of 222
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Page | 28 Indicator (Data covering to year end unless otherwise stated) Performance Target 2020/21 2021/22 2022/23 2022/23 % of ASB (Anti-Social Behaviour) complaints resolved within locally agreed targets (Housing and Social Wellbeing Committee) Year-end data available 16th April - NM 95.9% 89.2% 81% 90% Comments on Performance for 2022-23 and Target The % of ASB complaints resolved within locally agreed targets has reduced compared to the previous year and below target. This is due to the nature and complexity of some cases. Work has been undertaken with the locality teams to improve performance and meet the target of 90% in future reports. Culture & Communities Indicator (Data covering to year end unless otherwise stated) Performance Target 2020/21 2021/22 2022/23 2022/23 Number of community groups supported in the asset transfer process (Environment, Infrastructure & Economic Development Committee) 5 7 26 10 Number of groups receiving Community Investment funding (Environment, Infrastructure & Economic Development Committee) 0 141 85 N/A Numbers of Participation Requests (Environment, Infrastructure & Economic Development Committee) 1 0 0 N/A Comments on Performance for 2022-23 and Target The council has supported 26 community groups in 22/23, who have enquired about Community Asset Transfer (CAT), by sharing relevant information that the council holds in relation to assets being enquired about and provided with a single point of contact to work with. This has built the relationship between the council and the groups, which has then allowed for continued dialogue and shared process updates, as well as discussing whether a CAT is right for the group at this time. As a result of our partnership work, at least 9 of the 26 groups are currently live cases at the end of 22/23 and support will continue to be provided to these groups into financial year 23/24. During 2022/23, 85 Community Groups and Organisations successfully applied to the Community Investment Fund (CIF) and is lower than the 2021/22 figure. In 2022/23, CIF only ran once as opposed to twice in 21/22; therefore, the total number of applications was down on the previous year. In 2022/23, Community Groups also had the opportunity to apply to other grant schemes, such as the Cost-of-Living Fund, which supported Community Groups and Organisations to set up and run Community based Warm Spaces and give out Warm packs to those in need in their community. The Cost-of-Living Fund may have impacted on the number of CIF applications received by the closing date. Page 99 of 222
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Page | 29 Indicator (Data covering to year end unless otherwise stated) Performance Target 2020/21 2021/22 2022/23 2022/23 In 2022/23, we received no Participation Requests. This situation is not unique to Perth and Kinross, as other local authorities also report low numbers. In recognition of this, Part 3 of the Community Empowerment Act 2015 is being reviewed first as part of a broader Community Empowerment Act review by the Scottish Government. The Scottish Community Development Centre (SCDC) has formed a working group to lead this review with relevant authorities, and Perth and Kinross Council is represented in this working group. Following Information will not be available Indicator Indicator will be available Area of available Serviced business land (Ha) September 23 after land audit % of properties meeting the EESSH Available May 2023 (this is included in the Annual Return on the Charter and requires external validation) No. of unemployed people supported into work as a result of Employability programmes supported by the Housing & Environment service Available July 2023 – SLAED Page 100 of 222
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Page | 30 GLOSSARY OF TERMS APSE Association for Public Service Excellence BMS Business Management System CAB Citizens Advice Bureau CAT Community Asset Transfer CIF Community Investment Fund CIRIA Construction Industry Research and Information CLD Community Learning and Development CPP Community Planning Partnership CTLR Cross Tay Link Road DWP Department for Work and Pensions EPC Energy Performance Certificate ESOL English for Speakers of Other Languages EESSH Energy Efficiency Standard for Social Housing EV Electric Vehicle FBCA Federation of Burial and Crematorium Authorities FfF Futures for Families HEAT Home Energy Advice Team LAL Live Active Leisure LCHO Low-Cost Home Ownership LHEES Local Heat Energy Efficiency Strategy MMR Mid-Market Rent PESF Parental Employment Support Fund PMAG Perth Museum and Art Gallery RCGF Regeneration Capital Grant Fund RIF Scottish Government Recycling Improvement Fund RRTP Rapid Rehousing Transition Plan SCARF Save Cash and Raise Fuel SCDC Scottish Community Development Centre SSE Scottish and Southern Energy SuDS Best Community Sustainable Drainage UKSPF UK Shared Prosperity Fund Page 101 of 222
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PERTH AND KINROSS COUNCIL Environment, Infrastructure and Economic Development Committee 31 May 2023 SHORT-TERM LET CONTROL AREA: PROPOSALS FOR CONSULTATION Report by Head of Planning and Development (Report No. 23/171) 1. PURPOSE 1.1 To seek approval to consult on the principle of introducing a short-term let control area for Highland Perthshire and part of Eastern Perthshire, and to seek approval of consultative draft non-statutory guidance on how planning applications for short term lets will be assessed in Perth and Kinross. 2. RECOMMENDATIONS 2.1 It is recommended that Committee: • notes the short term lets evidence paper (Appendix 1) • approves public consultation on the principle of a short-term let control area for Highland Perthshire and part of Eastern Perthshire; and • approves public consultation on proposed non-statutory planning guidance on short-term lets (Appendix 2). 3. STRUCTURE OF REPORT 3.1 This report is structured over the following sections: • Section 4: Background • Section 5: Context • Section 6: Evidence and Key Considerations • Section 5: Proposals • Section 6: Conclusion • Appendices 4. BACKGROUND Perth & Kinross Corporate Plan 2022-2027 4.1 The Corporate Plan’s vision is for a ‘Perth and Kinross where everyone can live life well, free from poverty and inequality’. Priorities are: • Tackling poverty • In partnership with communities • Physical and mental well-being 7 Page 103 of 222
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• Children and young people • Tackling climate change • Vulnerable people • Stronger and greener economy 4.2 Access to quality, affordable housing is closely linked to addressing poverty, as housing costs are the main household expenditure for lower income households. Increased competition in the residential market including competition from buyers for second homes and short-term lets operating as a business, can impact on availability and affordability of homes. Affordable housing is becoming an issue for rural business where businesses have cited a lack of local homes for staff as a limiting factor to expansion (Housing Needs Assessments). The same issue is also experienced by public sector services, particularly in education, NHS, social care and the fire service. 4.3 However, short-term lets are also an important part of the visitor economy, encouraging spend locally. The proposals contained in this paper are therefore focussed on controlling the supply of properties being used for short- term let in some parts of the Council area rather than stopping it. Short-term lets issue 4.4 It should be noted that definitions for many of the terms used below are provided as part of appendix 2. 4.5 Some communities, as indicated in paragraph 4.6 below, are becoming increasingly concerned that the increase in short-term lets over recent years is impacting on the availability and affordability of housing locally, and is having a secondary impact on jobs, services and business opportunity. 4.6 Communities have referred to second homes and short-term lets as an issue in several Local Housing Needs Assessments have been conducted recently at the request of the communities, namely: • Pitlochry • Dunkeld and Birnam – PH8 area • Aberfeldy, Weem, Strathtay, Grandtully, Logierait and Ballinluig • Mount Blair Community Council area • Comrie Community Council area These community views are supported by the evidence gathered by officers for this report (appendix 1). 4.7 There are two property types contributing to short-term lets; short-term lets run solely as a business and casual short-term let (for less than 70 nights per annum) that normally operate as private second homes. Currently there are no powers for councils to disincentivise private second home ownership beyond the Land and Buildings Transactions Tax on additional properties and the removal of second homes council tax discount in 2017. This could change from April 2024, because of a new proposal from the Scottish Government to Page 104 of 222
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give local authorities powers to charge a council tax premium on second homes, should councils wish to do so. 4.8 Planning legislation at present requires owners to seek planning permission where the change of use of a residential property (dwelling house) to a short term let is considered to be a material change of use. The challenge is that this decision is largely a matter for the individual owner, unless the Council as Planning Authority is alerted. It should also be noted that if the change of use occurred more than 10 years ago, it is exempt from enforcement action and therefore is deemed to have planning consent. 4.9 Should a short-term let control area be introduced, all changes of use from residential property to short-term let which occur after the designation of the control area will be deemed as material, regardless of the circumstances, and will require planning permission. 5. CONTEXT Short-term Lets Licensing Scheme 5.1 The Scottish Government introduced a new mandatory licensing scheme for short-term lets in Scotland which opened for applications by new hosts on 1 October 2022. All existing short-term let hosts must apply for a licence by 1 October 2023, and all short-term lets must be licenced by 1 July 2024. As part of the licence application, short-term let hosts are required to have planning permission in place where there is a material change of use. Where a Control Area is in place, all uses of residential properties for short-term let will be deemed a material change of use. Town and Country Planning (Short-term Let Control Areas) (Scotland) Regulations 2021 and Planning Circular 01/2023: Short-term Lets and Planning 5.2 Section 26B of the Town and Country Planning (Scotland) Act 1997, as amended by the Planning (Scotland) Act 2019, came into force alongside the Control Area Regulations in April 2021. This gives planning authorities the option of designating all or part of their area as a short-term let control area for one or more of the following policy objectives: • to allow consideration of impacts on the availability of residential housing to allow consideration of impacts on the character or amenity of a neighbourhood to allow consideration of impacts on different types of building. 5.3 The newly revised Circular which supports the regulatory framework indicates factors that Planning Authorities may wish to consider when assessing the need for a control area. Of relevance to Perth and Kinross, as evidenced in appendix 1, are: Page 105 of 222
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• a lack of affordable and appropriate housing for local residents, perhaps indicated by a high share of sale volumes to, and high prices paid by, non-residents; and • a detrimental impact on local amenity, with some businesses, schools or other services that serve, and are reliant on, permanent residents closing or relocating. 5.4 Seeking to manage short-term lets through the planning system has limitations and risks including: • the scope of the short-term let regulations is, by definition, restricted to short-term lets and may not impact on the numbers of second homes, empty homes or purpose-built holiday accommodation; • short-term lets contribute to the operation of the tourism industry, which is a significant economic driver in some parts of Perth & Kinross and is a sector which is still recovering from the Covid pandemic; and • a control area may not result in the release of significant numbers of residential properties back onto the market, as there is no guarantee that any short-term lets which are refused planning permission will not simply revert to being a second home. 5.5 These limitations are explored in more detail in section 6 below. Approval of Perth & Kinross Local Housing Strategy 2022-27 5.6 The Local Housing Strategy (LHS) was approved on 15th March 2023 (report No 23/82). Full details of the LHS can be found on the Council’s website. 5.7 The LHS Action Plan gave an initial response to the short-term lets issue leading up to this report. Action 1.7 seeks that planning policy is developed through Local Development Plan 3 where appropriate for short-term let control areas by: • completing a feasibility study in relation to short-term let control areas; • carrying out community consultation; and • developing and implementing local development plan policy if / where appropriate for short-term let control areas. National Planning Framework 4 5.8 National Planning Framework 4 (NPF4) became part of the statutory development plan on 13 Feb 2023. NPF4 seeks to encourage, promote and facilitate sustainable tourism and directs local authorities to identify those areas where existing tourism provision is having adverse impact. Policy 30: Tourism sets out the factors to be taken into account in assessing proposals for tourism related developments which includes: the contribution to the local economy; impact on the surrounding area; and impacts on communities e.g. by hindering the provision of homes for local people. Specific mention is also made in Policy 30: Tourism to short-term lets. NPF4 is clear that proposals for Page 106 of 222
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the reuse of existing buildings for short term lets will not be supported where the proposal will result in: i. an unacceptable impact on local amenity or the character of a neighbourhood or area; or ii. the loss of residential accommodation where such loss is not outweighed by demonstrable local economic benefits. Perth & Kinross Local Development Plan 5.9 There is no specific policy within the existing Local Development Plan 2 (LDP2) which seeks to manage the change of use of residential properties to short-term lets. NPF4 Policy 30 will therefore the part of the statutory development used to assess the principle of such changes of use in planning applications until Local Development Plan 3 (LDP3) is in place. In the meantime, the appended non-statutory planning guidance has been drafted to help businesses and residents understand how planning applications will be assessed in Perth & Kinross. 5.10 Using the planning system to manage short term lets will not necessarily directly increase the supply of affordable housing in the relevant areas. There is also a need to increase supply of new build affordable housing. LDP2 identifies land to meet the assessed needs and demand for affordable and market housing in each of the area’s housing market areas. Looking ahead to the next Plan, and in the context of the new policy framework set out in NPF4, there is significant potential for LDP3 to further support increasing the supply of affordable houses, for example: • policy provision for allowing affordable houses (up to 50 homes) on non-allocated sites where this is part of a local authority supported affordable housing plan; • support for proposals which improve affordability and choice and which address identified gaps in provision; • scope for increasing the affordable contribution where a higher contribution is justified by evidence of need; • specifically in rural areas, support for taking into account identified local housing needs (including affordable housing); and • increased support for new homes in remote rural areas. 6. EVIDENCE AND KEY CONSIDERATIONS 6.1 A Short-term Lets Evidence Paper (Appendix 1) has been prepared to take forward LHS Action 1.7 and to provide a basis for defining a potential short- term let control area. This identifies secondary lettings, second homes and empty homes and seeks to understand whether a short-term let control area could be an effective contributor to more homes in pressured areas. Early engagement with communities for the LHS 2022-2027 identified affordability and availability of housing as the top concern in Perth and Kinross. In rural areas, short-term lets and second homes were identified as a contributing factor. Page 107 of 222
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6.2 As highlighted in the Evidence Paper, until all short-term lets are registered through the licensing scheme, pre-existing information on self-catering and second homes were used as proxy datasets which contribute to secondary lets (the letting of a non-principal residence). Analysis indicates that Highland Perthshire and northern areas of the Eastern Perthshire area have a relatively high concentration of both self-catering and second homes. These areas coincide with the communities that have been identifying pressure on housing, business opportunity and service provision in combination with falling school rolls as evidenced both in the Housing Needs Assessments and through community engagement. Analysis demonstrates that the pressure threshold of ‘Potential Housing Stock’ which is being used as self-catering and second homes combined is 10%. Appendix 3 outlines the areas above the 10% figure spatially. 6.3 The full details of how this analysis was undertaken is in the Evidence Paper. The analysis will be updated once the extent of licences and licensing applications is available. This will be after the deadline for licence applications closes on 1st October 2023. This refined analysis will verify the proxy data used in the analysis and indicate whether the short-term lets licensing scheme has had an impact on the number of short-term lets. Balance of sustainable tourism and housing supply 6.4 It is essential that any control area policy framework balances the positive contribution of short-term lets to the tourism sector and local economies, particularly in some rural parts of Perth and Kinross, against the potential adverse impacts on the character and amenity of areas and the impact of further reducing the supply of permanent housing. It is acknowledged that there is a balance to be struck within some communities between those who rely on an income from their short-term let, and those who are concerned that more residential properties should be retained as permanent homes for local people. 6.5 A control area will not operate as a complete ban on short-term lets, rather as a means of limiting new permissions to those where the loss of the residential property is outweighed by the economic benefit to the local community as required by NPF4. As highlighted above at 5.4, a short-term let control area cannot control second homes which are equally prevalent in some areas, and which often make much less of a contribution to the local economy than short-term lets occupied by visitors to the area. The introduction of a control area will also have no effect on the numbers of purpose-built self-catering units which are being operated as short-term lets, given that these will already have planning permission. 6.6 The pre Covid growth target for tourism in Perth & Kinross had originally been 3% per annum in the value of overnight stays, on the baseline year of 2018. Page 108 of 222
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This was revised, however, with the ambition of restoring the value of tourism to pre Covid 2019 levels by 2025. The latest available research (2021) indicates that the tourism economy has not recovered from the impact of the covid pandemic as yet and is still vulnerable to the new challenges of the cost-of-living crisis at the Perth & Kinross level. ‘By 2019, the annual value of tourism activity since 2010 had reached a total of £668m. Tourism activity and related spend in Perth & Kinross was substantially affected by Covid-19, but is recovering (+43% since 2020), whilst still remaining down (-44%) on 2019 pre-Covid levels’ (Source: Perth & Kinross Council STEAM Tourism Economic Impacts 2021 Year in Review p.4). 6.7 The growth in the short-term let sector in Scotland is indicative of the diversification of the accommodation sector away from traditional accommodation types (hotels, B&B etc). This has had the effect of lengthening the tourism season by accommodating shorter breaks in the ‘off- season’ for domestic and younger customers, and longer ‘tours of Scotland’ for international visitors (Visit Scotland, Key Facts on Tourism 2019). 6.8 In terms of accommodation trends, non-serviced accommodation had made a relatively better recovery compared with serviced accommodation but was still down by 36% on visitor numbers with the economic impact down 29% compared with 2019 (Source: Perth & Kinross Council STEAM Tourism Economic Impacts 2021 Year in Review, p.6). 6.9 As registration for short-term lets licences has not yet closed, it is unclear what impact the introduction of the licensing scheme has had on businesses and the numbers of short-term lets in Perth & Kinross. There is potential scope for the additional requirement for a planning application for all changes of use to short-term let, as would be required within a control area, to have a further impact. Experience in other local authority areas 6.10 To date, the City of Edinburgh and Highland Councils have each designated a short-term let control area. The entire City of Edinburgh Council area has been designated although this is currently the subject of a judicial review by the Court of Session. In the Highland Council area one ward is designated, Badenoch & Strathspey, which is co-terminus with the Highland ward in Perth and Kinross. Planning applications for short-term lets in Perth & Kinross 6.11 The Council’s Development Management webpages give guidance to applicants when planning permission is needed for a change of use to a short- term let. Table 1, indicates the number of applications received. As with the Page 109 of 222
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licensing scheme, applications for planning permission are currently being monitored for trends. Table 1: Number of Short-term let planning applications up to April 2023. 7. PROPOSALS Short-term let control area 7.1 Committee members are requested to consider the following 3 options for the control of short-term lets: • Option 1 – Rely solely on the existing legislation and policy framework (Circular, licencing scheme, and NPF4). • Option 2 – Introduce non-statutory planning guidance to assist with the interpretation of the existing legislation and policy framework but without designating a control area. • Option 3 – Introduce a short-term let control area for the Highland and part of the Eastern Perthshire areas together with non-statutory planning guidance to inform decisions on planning applications both within and outwith the control area. 7.2 With regard to options 1 and 2, NPF4 policy 30, as indicated earlier, includes specific reference to short-term lets. This requires planning authorities to take into account the impact on amenity and character should they become aware through an application or enforcement action. The second consideration is the loss of the property as a residential property. A limitation is that, again, only those proposals which are considered to be a material change of use require planning permission. This in turn means that the impact on the loss of the property as a residential property cannot be taken into account. 7.3 The advantage of introducing a control area as set out in option 3 means that all proposals for the change of use from a residential property to a short-term let within that control area will require planning permission. Recommended option: Option 3 7.4 The multiple benefits of the short-term let sector to the tourism industry are acknowledged. The Evidence Paper, however, indicates that there are Wards with applications Approved Applications Refused Applications Certificate of Lawfulness Awaiting Decision Ward 2 Strathmore 5 N/A N/A N/A Ward 3 Blairgowrie 8 N/A 1 N/A Ward 4 - Highland 14 N/A 5 8 Ward 5 - Strathtay 9 1 2 4 Page 110 of 222
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significant concentrations of self-catering lets and second homes (both of which contribute to the short-term let figures) in Highland Perthshire and parts of Eastern Perthshire. The introduction of a short-term let control area for this particular geographical area is therefore considered appropriate as one of a range of measures to help address the shortage of housing, in particular affordable housing. For clarification, control area designation will not mean an automatic refusal for all changes of use to short-term let. However, it will allow full account to be taken of the potential impact of the loss of residential accommodation and residential amenity in every case; as well as a presumption against some specific types of proposal. Non-statutory planning guidance 7.5 It is considered that additional planning guidance is needed to support the introduction of a short-term let control area and to help inform planning decisions across the wider Council area until LDP3 is in place. As there is no policy basis in LDP2 specifically on the control of short-term lets, any such guidance can only be non-statutory. 7.6 Parts of both Perth & Kinross and Highland Council areas fall within the Cairngorms National Park. The short term let issue has been discussed with the Park Authority and it was noted that policy alignment with Highland Council where possible would be beneficial. 7.7 It is proposed to consult on planning guidance (Appendix 2) to assist in the assessment of planning applications for the change of use of a residential property to a short-term let. The proposed planning guidance sets out the circumstances under which the change of use to a short-term let will be supported including, in simplified terms: • where local economic benefit (as required by NPF4) can be demonstrated. • where a long-term empty property will be brought back into active use • where the short-term let is part of a diversification scheme for a business within the same landholding • where the short-term let has been established for at least 10 years • where the property has its own door to the street or garden, to reduce impact on amenity of neighbouring residents. Consultation 7.8 It is proposed to consult on the principle of designating a short-term let control area for Highland Perthshire and part of Eastern Perthshire as defined in Figure 1. Comments will also be sought on the draft planning guidance. Comments will be collected through the Consultation Hub for an 8-week period from 2nd June - 28th July. Responses will be analysed and reported back to Committee after the summer recess. 7.9 Should the Committee be minded to proceed to formal designation of a control area, in line with the Control Area Regulations, the Council must: Page 111 of 222
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• publish notice of the proposal to designate a control area submit the proposal to the Scottish Ministers and obtain their approval; • subject to Ministerial approval, give notice of the designation, setting out the area to be covered and the date on which the control area will come into effect. 7.10 Consultation will be open to the general public across the whole of Perth and Kinross and will include stakeholder groups such as: • Community Councils; • the Association of Scotland’s Self-Caterers; • Community development trusts of Aberfeldy, Dunkeld, Birnam & District Community, Comrie, Mount Blair, Kinloch Rannoch, and Pitlochry. • local tourism associations in particular those within the potential control area – The Atholl Glens, Dunkeld & Birnam Tourist Association, Glenshee and Strathardle Tourist Association, Pitlochry Partnership, Rannoch & Tummel Tourist Association, and Visit Aberfeldy; and • neighbouring planning authorities including the Cairngorms National Park Authority and the Loch Lomond & the Trossachs National Park Authority. 8. CONCLUSION 8.1 Affordability and availability of housing is a known pressure particularly in rural areas of Perth and Kinross. Some communities have expressed concern over the levels of short-term lets and the potential impacts on the local business as well as housing pressure, and evidence would support their concerns. 8.2 Legislation now provides the Council an opportunity to control the number and suitability of new short-term lets through a short-term let control area in those parts of the Council area where a need can be demonstrated. The wider economic consequences and implications, however, must also be carefully considered, noting that while short-term lets are responsible for part of the housing pressure, second homes are also a significant factor for which there is no scope to control at this point. 8.3 Officers believe there is sufficient evidence to support the potential designation of a control area under the Town and Country Planning (Short- term Let Control Areas) (Scotland) Regulations 2021 and with Committee approval, this will be tested through consultation. Draft non-statutory planning guidance on how planning applications for short term-lets will be assessed will also be consulted on. Page 112 of 222
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Authors Name Designation Contact Details Stephanie Durning Katrina Walker Planning and Policy Officer, Housing Strategy Team Planning Officer, Development Plans Team (01738) 475000 ComCommitteeReports@pkc.gov.uk Approved Name Designation Date Barbara Renton Executive Director (Communities) 23 May 2023 APPENDICES • Appendix 1 – Short-term Lets Evidence Paper • Appendix 2 – Non-Statutory Planning Guidance on the Change of Use of a Residential property to Short-term Let, Consultative Draft Page 113 of 222
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ANNEX 1. IMPLICATIONS, ASSESSMENTS, CONSULTATION AND COMMUNICATION Strategic Implications Yes / None Community Plan / Single Outcome Agreement Yes Corporate Plan Yes Resource Implications Financial None Workforce Yes Asset Management (land, property, IST) None Assessments Equality Impact Assessment Strategic Environmental Assessment Yes Sustainability (community, economic, environmental) Legal and Governance None Risk None Consultation Internal Yes External Yes Communication Communications Plan Yes 1. Strategic Implications SHORT-TERM LET CONTROL AREA_ PROPOSALS FOR CONSULTATION - Committee Annex Checklist Community Plan/Single Outcome Agreement 1.1 This report supports the priority within the Community Plan 2022-27 to reduce poverty by recognising the need to consider the impact short-term lets can have on the availability of affordable housing. SHORT-TERM LET CONTROL AREA_ PROPOSALS FOR CONSULTATION - Strategic & Resource Implications (1).docx Corporate Plan 1.2 This report supports the objectives within the Corporate Plan 2022-2027 to tackle poverty by recognising the need to consider the impact short-term lets can have on the availability of affordable housing. 2. Resource Implications Financial 2.1 n/a. Page 114 of 222
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Workforce 2.2 The introduction of a Short Term Let Control Area would result in additional planning applications being received by the Council. This will have an associated increase in workload pressures. The Planning service will monitor and manage any increase, and at this time it is not anticipated that more staffing will be required. Asset Management (land, property, IT) 2.3 n/a. 3. Assessments – Highlighted sections to be updated once the new IVA process has been completed Equality Impact Assessment 3.1 Under the Equality Act 2010, the Council is required to eliminate discrimination, advance equality of opportunity, and foster good relations between equality groups. Carrying out Equality Impact Assessments for plans and policies allows the Council to demonstrate that it is meeting these duties. The Equality Impact Assessment undertaken in relation to this report can be viewed clicking here. Final STLCA EFIA.pdf This section should reflect that the proposals have been considered under the Corporate Equalities Impact Assessment process (EqIA) with the following outcome: (i) Assessed as not relevant for the purposes of EqIA (ii) Assessed as relevant and actions taken to reduce or remove the following negative impacts: (add summary points only here) (iii) Assessed as relevant and the following positive outcomes expected following implementation: (The proposal has the potential to have positive impact by increasing the number of homes in the Short-term lets by with potential small impact on affordability. ). Strategic Environmental Assessment 3.2 The Environmental Assessment (Scotland) Act 2005 places a duty on the Council to identify and assess the environmental consequences of its proposals. 3.3 Proposals have been considered under the Act and pre-screening has identified that the PPS will have no or minimal environmental effects, it is therefore exempt and the SEA Gateway has been notified. The reason(s) for concluding that the PPS will have no or minimal environmental effects is that the planning guidance will be non-statutory and sit within the framework of the National Planning Framework 4 which has undergone full SEA. Page 115 of 222
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Sustainability 3.4 Under the provisions of the Local Government in Scotland Act 2003 the Council has to discharge its duties in a way which contributes to the achievement of sustainable development. Under the Climate Change (Scotland) Act 2009 the Council also has a duty relating to climate change and, in exercising its functions must act: • in the way best calculated to delivery of the Act’s emissions reduction targets; • in the way best calculated to deliver any statutory adaptation programmes; and • in a way that it considers most sustainable. This section should reflect the steps that have been taken to assess the proposals against the Council’s Principles for Sustainable Development. Click here for further guidance. Legal and Governance 3.5 If the Council decides to proceed to the formal designation of a control area then input will be sought from Legal Services. Risk 3.6 n/a. SHORT-TERM LET CONTROL AREA_ PROPOSALS FOR CONSULTATION - Impact Assessments.docx 4. Consultation Internal 4.1 Advice and views have been sought from colleagues in Development Management and the Communities – Place Development Team in the preparation of this report. External 4.2 Initial discussions have been undertaken with neighbouring local authorities – Highland Council and the Cairngorms National Park Authority. Page 116 of 222
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5. Communication 5.1 Consultation on the principle of designating a short-term let control area, and on the proposed planning guidance will be open to the general public across the whole of Perth & Kinross via consultation hub. It will also be particularly targeted at: • community groups; • community development and housing trusts • the Association of Scotland’s Self-Caterers; • local tourism associations in particular those within the potential control area; and • neighbouring local authorities. 2. BACKGROUND PAPERS 2.1 The following documents were referred to or relied upon in preparing this report: • Perth & Kinross Local Housing Strategy 2022-27 • Town and Country Planning (Short-term Let Control Areas) (Scotland) Regulations 2021 • Planning Circular 01/2023: Short-term Lets and Planning • National Planning Framework 4 • Perth & Kinross Local Development Plan 2 • Perth & Kinross Council STEAM Tourism Economic Impacts 2021 Year in Review • Visit Scotland, Key Facts on Tourism 2019 • Highland Council draft non-statutory short term secondary letting planning policy Page 117 of 222
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1 Appendix 1 Short-Term Lets Evidence Paper April 2022 Contents Introduction ........................................................................................................................... 1 Methodology ......................................................................................................................... 1 Results Summary .................................................................................................................. 3 Affordability of Housing ......................................................................................................... 4 Short-term Lets ..................................................................................................................... 5 Highland Perthshire Housing Market Area ......................................................................... 9 Housing Needs Assessments ............................................................................................. 11 Strathearn Housing market area ...................................................................................... 13 Recommendation ............................................................................................................ 15 Conclusion .......................................................................................................................... 15 Reference List ..................................................................................................................... 16 Introduction Early engagement for the 2022-2027 Local Housing Strategy indicated availability and affordability of housing as a top concern of Perth and Kinross residents. The growth of Short-term lets in recent years was highlighted as a contributing factor. Community groups in places where tourism is a significant part of the economy, were also feeding back to the council that the lack of affordable housing was impacting on the ability of people to find suitable homes locally particularly affecting young and older people, as their needs changed. Likewise, businesses and services were finding that the lack of available housing was impacting their ability to recruit staff to expand or provide services in the communities where it is needed. Among the reasons given, were rising house prices caused by competition from short-term lets business operators and second home buyers. As a result, the Local Housing Strategy 2022-2027 embedded an action to understand the level of short-term lets, and impact on communities and, whether new planning legislation (Short-Term Let Control Areas, Scotland, 2021) could be effective in balancing the local economic benefits to using residential homes for tourism accommodation and providing enough homes for local need. Methodology Research undertaken in Badenoch and Strathspey Ward for Highland Council for their own evidence paper was taken as a starting point for informative data analysis. The data used was expanded or excluded as appropriate to the Perth and Kinross data. 7 Page 119 of 222
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2 The approach was taken to create a complete geographic picture by analysing the whole of Perth and Kinross at postcode district level, allowing for reasonable detail and avoiding data gaps between settlements. This also allowed for analysis at various geographic scales, for the period 2017-2021. In order to assess the number of ‘short-term lets’, proxy data had to be used as until the Short-Term Lets Licensing legislation (2022) was established, this was not a data category within the council. The proxies of ‘self-catering units’ and ‘second homes’ were analysed as reliable datasets contributing to secondary lets. A secondary let is a dwelling that is not a primary residence, that is let to guests and is the only type of short-term letting that affected by the control area legislation. The registration of existing Short-Term Lets under the licensing scheme was extended until October 2023. This evidence paper will be updated once the full licencing information is available after October 2023. The key indicator metric was ‘ % of total potential housing stock being used as second homes and self-catering units’ and was defined by Highland Council. ‘Potential’ because not all self-catering units could be used as permanent dwellings as the category includes, temporary dwellings such as lodges, bothys, yurts etc. Although a source of potential short-term lets, many second homes would be used for private purposes. This figure is an indicator of the percentage of housing that is being used as holiday accommodation (second homes and self-catering). The metric of % total potential housing being used as holiday accommodation in Badenoch and Strathspey was 17.11%. This figure includes self-catering units that would not be suitable as residential dwellings (e.g. lodges) so will be inflated but does not include the number of second homes that are casually let, contributing towards ‘short-term lets.’ The Housing Waiting list data could not be used due to the way the data is collected, providing inflated figures over multiple postcodes and therefore not informative. Homes for Private rent could only provide a current snapshot and be useful in determining the percentage of the housing market in this tenure in each postcode district. School rolls were examined to gain insight into potential impact on demographic trends. In addition in 2022, Local Housing Needs assessments were being completed by the Community Housing Trust in 5 communities, supported by Perth and Kinross Council. These were used to direct more detailed analysis, at the sub-postcode level where necessary. The data glossary provides more information on each data set illustrated in the evidence tables throughout the document. Page 120 of 222
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3 Data Glossary Table 1. Data glossary Results Summary • The proxy data of ‘self-catering units and second homes’ were used as robust ‘short-term let’ data was not a classification until the Short-term licensing scheme (2022). • The data analysis demonstrates that the number of self-catering units through the period 2017-2021 grew significantly (25%) across all areas of Perth and Kinross and is higher at 3% than the Scottish figure of 1.2% of total housing stock (Reference 1). • Generally, the recent growth in self-catering units has brought the figures into alignment with existing numbers of second homes which has shown more steady growth. • Second homes in the Perth & Kinross are still growing at 1% in contrary to the Scottish average decreasing rate of -6.9% (Reference 2) • Self-catering accommodation will make a greater contribution to the local economy than second homes. • A key metric of the analysis was the ‘total potential housing stock being used as self-catering and second homes’. • Highland Council in their similar analysis for Badenoch and Strathspey found that 17.11% of the total potential housing stock was being used as self- catering and second homes (Reference 5) • The data for Perth and Kinross signified that the lower figure of total percentage housing stock being used as self-catering and second homes of 10% was indicative of an impact threshold. • At 2021 levels, the number of homes that could be recovered from a short- control area would be significantly less than 634 (8.3%). The estimate for this Self Catering Units (SCUs) Registered as businesses. Second Homes Included in Council tax figures and pay full council tax (no surcharges) Total Second homes & SCU Indicators contributing to short-term lets Council Tax Listings (includes 2nd homes) All dwellings including second homes Potential Total Housing Stock The total of residential homes, second homes and self catering units. % of potential Housing Stock used as second homes & SCU Short Terms Lets on AirBNB Surveyed Jan'22. Apprx. Figure of secondary accom. Private Lets The number of properties registered as a private let. House Completions (inc. small site ave.) Total house completions over the period. Change = % of Ctax list. Affordable Completions House completions in the 'affordable category' . Total over period. Change = % of Ctax list Purpose built SCUs (Approved applications) Empty Homes (>6mths) Short term empty home Unoccupied Homes (<6mths) Long term empty home. Surcharge payable School Roll (all) The proportion of all dwellings that are let for self catering & second homes. Includes purpose built accomodation that may not be suitable for residential homes. Therefore an over estimate. The number of approved applications for purpose built Self catering. Could be an overestimate. Total over the period Includes schools of the relevant catchment area. Page 121 of 222
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4 will be refined by the data from the Licensing scheme register, after October 2023. • The areas affected by the 10% threshold include the whole of the Highland Perthshire Market Area and the northern part of Eastern Housing Market Area, north of The Bridge of Cally where the total percentage housing stock being used as self-catering and second homes was quantified as 16.3%. • This area includes parts of the Cairngorm National Park and lies adjacent to the Badenoch and Strathspey Ward in Highland Council. • The postcode districts of Comrie and Ardvorlich (PH6/part FK19) are close to the impact threshold at 8.1% and as such should be monitored. Affordability of Housing The 2022 Housing Need and Demand Assessment indicates that the average Perth and Kinross House Price in 2020-21 was £224,480, 15% above the Scottish average, of £194,100 (Reference 2). Table 2 outlines the income multipliers needed to achieve house purchases as an illustrator of poor affordability. Market Rents are the similar with 45% of households finding them unaffordable. Young people are at further disadvantage as 1 in 2 households cannot afford the market entry point. These 2020 figures demonstrate that affordability is a Perth and Kinross wide issue and especially in rural areas. Table 2: CHIMA data tool 2019/20 affordability for Perth & Kinross using Scot Gov methodology for market entry Reference 3: PKC LHS Briefing 1 (2022) Slide 9. There is concern that changes in the Private Rental Sector to improve energy efficiency and improve tenants’ rights may cause this sector to contract, releasing more housing into sales and potentially increasing short-term lets. In areas with higher proportion of private rental properties, these measures could impact the availability of more affordable and mid-market housing options. The LHS has a number of actions aimed at alleviating affordable housing pressure including target of provision of an urban-rural split that matches population, for affordable homes. The Council also supports rural communities to access the Rural Housing Fund to support affordable and community led housing. Actions that aim to increase the number of affordable homes are:- • LHS Action Plan 1.1 Achieve an average of 210 affordable housing completions annually and maintain 53%/47%, urban/rural split. • LHS Action Plan 1.2 Develop an Empty Homes Action Plan – to bring empty homes back into use. Page 122 of 222
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5 • LHS Action Plan 1.4 Seek opportunities to deliver a wider range of housing options in rural areas : o Rural areas- work in partnership with private estates, land owners, developers, funders and local communities. o Undertake a targeted Housing Needs Assessments Programme (HNAP) in rural settlements where tackling a lack of AH has been identified as a priority in Community Action Plans (CAPs) o Work in partnership with rural housing specialists to enable Community Development Trusts to secure subsidy from Scottish Land Fund (SLF) and Rural Housing Fund (RHF), private and other funding sources to develop community-led housing o Aim to deliver, via a community-led approach, up to 100 new affordable homes of various types and tenures that reflect HNAP outputs, to be delivered to Design Guide Standard over the period of the strategy Short-term Lets Collection of data at a postcode district level between 2017-2022 allowed a detailed summary of Perth and Kinross as a whole, comparison with national trends and the similar analysis by Highland council. The key indicator of the potential housing stock, utilised for second homes and self- catering units in Badenoch and Strathspey was 17.77%, compared to the Perth and Kinross figure of 2.9%. In contrast to the Scottish decline in second homes of 6.9%, Perth and Kinross showed growth over the period of 1.1%. Meanwhile short-term lets have increased by 25% compared with 12.16% in the Badenoch and Strathspey ward. Page 123 of 222
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6 Table 3. Perth and Kinross analysis Key Points • Across the whole of Perth and Kinross, the impact of self-catering units and second homes on the total potential housing stock is 2.9%. • Significant growth in self-catering units at 25% over the 5-year period bringing the figure close to the number of second homes. • 72% of newly registered self-catering units could come from purpose built self-catering units applications. • Overall impact a of self-catering is low at 1.4% of total potential housing stock. • Growth of council tax dwellings of 2.9% over the period, more than second homes, far less that self-catering numbers. • Contrary to the Scottish average of a reduction in second homes of 6.9% (Scot gov 2019), in Perth in Kinross the trend is a slight growth of 1.1%. • School rolls have increased very slightly overall at 1%. P & K total 2017 2018 2019 2020 2021 change % change % of Total Hsg Stock (2021) P&K Change over Period Badenoc h & Strathspe y Change Highland Wide change % Scotland Self Catering Units (SCUs) 843 896 987 1015 1054 211 25.0% 1.4% 25.0% 12.16% 38% Second Homes 1120 1187 1136 1118 1132 12 1.1% 1.5% 1.1% -8.13% 2.24% -6.9% Total Second homes & SCU 1963 2083 2123 2133 2186 223 11.4% 2.9% 11.4% 1.6% 8.55% Council Tax Listings (includes 2nd 71646 72247 72917 73700 74264 2618 3.5% 98.6% 3.5% 1.65% 2.98% Potential Total Housing Stock 72489 73143 73904 74715 75318 2829 3.8% 100% 3.8% 2.5% 3.66% % of potential Housing Stock used as second homes & SCU 3% 3% 3% 3% 3% 0.2% 2.9% 0.2% 17.11% Short Terms Lets on AirBNB 1014 1014 1.3% 3.63% Private Lets 11083 14.7% House Completions (inc. small site ave.) 586 578 776 895 673 +3508 4.9% 4.7% 4.9% 37.25% Affordable Completions 123 144 302 153 232 +954 1.3% 1.3% 1.3% Purpose built SCUs (Approved 5 23 20 46 57 +151 17.9% 0.2% 17.9% Long-term Empty Homes 1290 1368 1308 1653 1310 20 0.2% 1.7% 0.8% 36.09% 37.25% Unoccupied Homes (<6mths) 1422 1463 1543 1295 1393 -29 -9.7% 1.8% -9.7% School Roll (all) 17958 18006 17399 18197 18139 181 1% 1% -2.51% 0.5% Page 124 of 222
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7 Analysis of postcode district allowed the metric of potential housing being used as self-catering and second homes to be mapped for each. Figure 1 illustrates the relatively higher percentages in areas where tourism is a significant part of the economy. Map of Key Indicator Figure 1. Key Indicator: Impact on Potential Housing Stock The areas with higher than 10% lie within Highland Perthshire Market Area and the Mount Blair Community Council Area. The map above illustrates the extent of the Housing Market Areas and includes part of the Cairngorms National Park in the northern extents of both market areas. Page 125 of 222
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8 The Perth and Kinross housing market areas are defined below. Figure 2. PKC Housing Market Areas Housing market areas are defined through specific analysis of housing patterns to identify relevant boundaries rather than arbitrary governance boundaries. They are used to study the housing market for the Housing Needs and Demand Assessment. Figure 3. National Parks within PKC boundary The Cairngorm National Park lies within the northern boundary of the council boundary and the Loch Lomond and the Trossachs National Park is within the western boundary. Page 126 of 222
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9 Highland Perthshire Housing Market Area The postcode districts analysis indicated that the Highland Perthshire Housing Market Area was showing an overall impact of 15.6% with potentially between 11% and 38.4% in individual postcode districts being used as second homes and self- catering units (Table 4). All districts demonstrated the trend of growing short-term lets over the period, levelling up to existing second homes numbers, and falling school rolls which may be partly explained by the availability of housing for use as permanent homes and at an affordable level for people working in the area. Table 4. Highland Perthshire Market Area The district with the highest potential figure was PH17 Kinloch Rannoch outlined below. Qualitative evidence was collected that services were being impacted by availability of housing in this area. Highland Perthshire FK21, PH8, PH9, PH15, PH16, PH17, PH18 2017 2018 2019 2020 2021 change % change % of Total Hsg Stock 2021 Self Catering Units (SCUs) 480 515 542 536 562 82 17.1% 7.9% Second Homes 525 553 534 521 545 20 3.8% 7.7% Total Second homes & SCU 1005 1068 1076 1057 1107 102 10.1% 15.6% Council Tax Listings (includes 2nd homes) 6468 6481 6508 6525 6534 66 1.0% 92.1% Potential Total Housing Stock 6948 6996 7050 7061 7096 148 2.1% 100% % of potential Housing Stock used as second homes & SCU 14.5% 15.3% 15.3% 15.0% 15.6% 1.1% 15.6% Short Terms Lets on AirBNB *secondary 512 7.2% Private Lets only live data 1668 23.5% House Completions (inc. small site ave.) 28.6 28.6 52.6 31.6 55.6 +197 3.0% 2.8% Affordable Completions 0 0 24 0 12 +36 0.6% 0.5% Purpose built SCUs (Approved applications) 2 8 7 29 34 +80 16.7% 1.1% Empty Homes (>6mths) data not available 0.8% Unoccupied Homes (<6mths) data not available -9.7% School Roll (secondary) 558 531 541 534 539 -19 -3% School Roll (primary) 684 661 620 634 606 -78 -11% Page 127 of 222
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10 Table 5. PH17 (Kinloch Rannoch area) Key Points • Significant recent growth in self-catering of 33% reflected in potential housing stock being used as Self-Catering units of 38%, the highest of all areas. • None of this has been due to purpose-built applications in the period so many of these could be residential conversions to short-term letting and is reflected in the decrease in council tax listings. • Reporting of issues housing essential workers to PKC. • School roll is declining but the levels are not significant. • Included in Highland Perthshire analysis The lowest percentage housing stock being used as second homes and self-catering units in the Highland Perthshire Market area was PH8 Dunkeld and Birnam, table 6 below. There is qualitative evidence that there are negative impacts on affordability and availability of housing to support business and services and quality of living even at this lower percentage of 11%. The Housing Needs Assessment identifies the need to reduce competition in the housing market from short-term lets with 87 households looking to move into or within the area in the next 5 years (CHT,2022, PH8 Community Housing Needs Survey). PH17 Kinloch Rannoch 2017 2018 2019 2020 2021 change % change % of Total Hsg Stock 2021 Self Catering Units (SCUs) 21 21 23 20 28 7 33.3% 17.1% Second Homes 34 34 35 34 35 1 2.9% 21.3% Total Second homes & SCU 55 55 58 54 63 8 14.5% 38.4% Council Tax Listings (includes 2nd homes) 142 143 140 143 136 -6 -4.2% 82.9% Potential Total Housing Stock 163 164 163 163 164 1 0.6% 100% % of potential Housing Stock used as second homes & SCU 34% 34% 36% 33% 38% 4.7% 38.4% Short Terms Lets on AirBNB 16 9.8% 9.8% Private Lets 17 10.4% House Completions (inc. small site ave.) 0 0 0 0 0 +0 0% 0.0% Affordable Completions 0.7 0.7 0.7 0.7 0.7 +3 2.3% 2.0% Purpose built SCUs (Approved applications) 0 0 0 0 0 +0 0% 0.0% Empty Homes (>6mths) Unoccupied Homes (<6mths) School Roll (secondary) 122 112 115 104 117 -5 -4% School Roll (primary) 17 15 18 19 17 0 0% Page 128 of 222
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11 Table 6. PH8 Dunkeld and Birnam Area Key points • Fairly significant recent growth in the self-catering numbers at 11.6% • Stable second home numbers and comparable with self-catering numbers over the period. • Evidence of transference of residential homes and second homes into self- catering. • Overall impact of holiday accommodation on potential total housing stock is 11% • House completions show small growth at 2% of total potential housing stock with no affordable house provision. Dunkeld has no sites identified for housing in the current LDP • Higher than average Private letting at 20% compared with the Perth and Kinross average of 14% • School roll has significant decrease of the primary roll of 20% over the period. Could indicate a significant impact on viability of community. • Comparing with similar areas, Dunkeld may have had a longer standing problem with lower levels of recent self-catering growth. • Included in Highland Perthshire analysis Housing Needs Assessments The Housing Needs Assessments (HNAs) of Pitlochry; Dunkeld and Birnam – PH8 area; Aberfeldy, Weem, Strathtay, Grandtully, Logierait and Ballinluig; Comrie Community Council area and Mount Blair Community Council and also fed into the analysis. The surveys indicated that the lack of affordable housing was impacting the ability of business to expand, recruit and retain staff. The HNAs did not stipulate if some of the businesses were operating in the short-term lets sector thus it is not always clear whether this business feedback would be in support of controls numbers of short-term lets as part of the solution to the availability of affordable housing. PH8 Dunkeld and Birnam 2017 2018 2019 2020 2021 change % change % of Total Hsg Stock 2021 Self Catering Units (SCUs) 59 59 61 64 66 7 11.9% 5.7% Second Homes 60 65 65 60 60 0 0.0% 5.2% Total Second homes & SCU 119 124 126 124 126 7 5.9% 10.9% Council Tax Listings (includes 2nd homes) 1085 1090 1090 1085 1088 3 0.3% 94% Potential Total Housing Stock 1144 1149 1151 1149 1154 10 0.9% 100% 10% 11% 11% 11% 11% 1% 11.0% Short Terms Lets on AirBNB 47 4.1% Private Lets 234 20.3% House Completions (inc. small site ave.) 6.2 4.2 4.2 4.2 4.2 +23 2% 2.0% Affordable Completions 0 0 0 0 0 +0 0% 0.0% Purpose built SCUs (Approved applications) 0 0 0 3 0 +3 5% 0.3% Empty Homes (>6mths) Unoccupied Homes (<6mths) School Roll (secondary) 436 419 426 430 422 -14 -3% School Roll (primary) 153 159 146 136 123 -30 -20% % of potential Housing Stock used as second homes & SCU Page 129 of 222
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12 The Blairgowrie postcode district of PH10 did not identify a significant level of impact from self-catering and second homes, due to the dominance of Blairgowrie and Rattray in the figures (Table 7). However, the Mount Blair Housing Needs assessment provided detailed numbers of a concentration of second homes and short-term lets in their community council area, that was not reflected in the postcode district level analysis. This directed a deeper analysis of individual postcodes confirming the concentration of self-catering and short-term lets in the area north of The Bridge of Cally, amounting to a potential 24% impact level on the housing stock (Table 8). Table 7. PH8 Blairgowrie including Mount Blair Area Key Points • Increases in self-catering unit numbers of 37.2% are not reflected in a significant change of dwellings to holiday accommodation in the postcode district at 3.9% impact of total housing stock. • Decrease in the numbers of second homes. • House completions seem to be translating into homes, reflected in the growing council tax list. PH10 Blairgowrie 2017 2018 2019 2020 2021 change % change % of Total Hsg Stock 2021 Self Catering Units (SCUs) 78 83 92 99 107 29 37.2% 1.8% Second Homes 126 130 120 118 120 -6 -4.8% 2.1% Total Second homes & SCU 204 213 212 217 227 23 11.3% 3.9% Council Tax Listings (includes 2nd homes) 5464 5510 5584 5694 5739 275 5.0% 98.2% Potential Total Housing Stock 5542 5593 5676 5793 5846 304 5.5% 100% % of potential Housing Stock used as second homes & SCU 3.7% 3.8% 3.7% 3.7% 3.9% 0.2% 3.9% Short Terms Lets on AirBNB 143 2.4% Private Lets 731 12.5% House Completions (inc. small site ave.) 63 30 62 95 15 +265 4.8% 4.5% Affordable Completions 38 13 72 24 0 +412 7.5% 7.0% Purpose built SCUs (Approved applications) 1 10 2 1 21 +35 44.9% 0.6% Empty Homes (>6mths) Unoccupied Homes (<6mths) School Roll (secondary) 721 719 719 766 801 80 11% School Roll (primary) 885 881 921 913 886 1 0% Page 130 of 222
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13 Table 8. Mount Blair Community Council Area Key Points • The area reflects the postcodes to the north of Bridge of Cally • It was not necessary to conduct a temporal analysis as the HNAs had provided long standing figures that correlated with the 2021 snapshot. • The secondary school roll is less informative due to the dominance of the towns in the figures however the primary school roll suggests a relevant negative impact. Strathearn Housing market area The postcode district of PH6 in table 9, was combined with the partial postcode district of FK19, and showed levels of potential housing stock impact at 8.1%; high in comparison to the adjacent districts in the Strathearn Housing Market Area (Table 10). The growth in self-catering units has been less than Highland Perthshire, at 14.3%. The number of second homes almost a third lower than self-catering units within the postcode district, differing to the Highland Perthshire trend. The data suggests the possible transfer of second homes into the self-catering; potentially a positive economic benefit by comparison. As such this postcode district has not been included in the area of negative potential impact. However, the Housing Need Assessment for the town of Comrie identifies concern by residents of negative impact of ‘short-term lets’ thus it is recommended that these postcode districts be monitored and views sought in any public consultation. Mount Blair Community Council Area 2017 2018 2019 2020 2021 change % change % of Total Hsg Stock 2021 Self Catering Units (SCUs) 72 12.5% Second Homes 69 12.0% Total Second homes & SCU 141 24.5% Council Tax Listings (includes 2nd homes) 504 87.5% Potential Total Housing Stock 576 100%% of potential Housing Stock used as second homes & SCU 24.5% 24.5% Short Terms Lets on AirBNB 143 24.8% Private Lets 113 19.6% House Completions (inc. small site ave.) 0 0 0 0 0 +0 0% Affordable Completions 0 0 0 0 0 +0 0% Purpose built SCUs (Approved applications) 1 4 0 0 8 +13 2% Empty Homes (>6mths) Unoccupied Homes (<6mths) School Roll (secondary) 721 719 719 766 801 80 11% School Roll (primary) 59 57 67 69 54 -5 -8% Page 131 of 222
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14 Table 9. PH6, Comrie district Key Points • The sample size of FK19 was too small to be meaningful so combined with PH6 adjacent postcode district • In combination, the numbers of second homes and self-catering units are elevated to some areas where nearing the threshold, The rise in new build completions is not reflected in the council tax list which may account for some of the rise in self-catering units. • Primary school rolls are falling which may partly be indictive of changing demographics. • The area is close to the defined threshold Table 10. Strathearn Housing Market Area PH6/FK19 Comrie NB: Contains all PH6 data but only PKC FK19 data 2017 2018 2019 2020 2021 change % change % of Total Hsg Stock 2021 Self Catering Units (SCUs) 42 41 44 51 48 6 14.3% 3.4% Second Homes 67 73 71 69 66 -1 -1.5% 4.7% Total Second homes & SCU 109 114 115 120 114 5 4.6% 8.1% Council Tax Listings (includes 2nd homes) 1363 1369 1368 1358 1364 1 0.1% 96.6% Potential Total Housing Stock 1472 1483 1483 1478 1412 -60 -4.1% 100% % of potential Housing Stock used as second homes & SCU 7.4% 7.7% 7.8% 8.1% 8.1% 1% 8.1% Short Terms Lets on AirBNB 48 3.4% Private Lets 154 10.9% House Completions (inc. small site ave.) 1.5 2.5 1.5 1.5 8.5 +16 1.1% 1.1% Affordable Completions 0 0 0 0 0 +0 0% 0% Purpose built SCUs (Approved applications) 0 0 0 3 0 +3 7.1% 0.2% Empty Homes (>6mths) Unoccupied Homes (<6mths) School Roll (secondary) 571 582 581 588 605 34 6% School Roll (primary) 159 154 147 142 136 -23 -14% STRATHEARN PH3,4,5,6,7, FK15 2017 2018 2019 2020 2021 change % change % of 2021 Total Hsg Stock Self Catering Units (SCUs) 112 120 134 143 142 30 26.8% 1.5% Second Homes 110 118 131 140 138 28 25.5% 1.4% Total Second homes & SCU 222 238 265 283 280 58 26.1% 2.9% Council Tax Listings (includes 2nd homes) 9193 9289 9372 9443 9527 334 3.6% 98.5% Potential Total Housing Stock 9305 9409 9506 9586 9669 364 3.9% 100% % of potential Housing Stock used as second homes & SCU 2% 3% 3% 3% 3% 1% 1.0% 3.0% Short Terms Lets on AirBNB 193 5.2% Private Lets 1381 14.3% House Completions (inc. small site ave.) 98.2 89.2 77.2 133.2 104.2 +502 5.5% 5.2% Affordable Completions 0 0 0 13 41 +54 0.6% 0.6% Purpose built SCUs (Approved applications) 0 0 2 3 1 +6 5.4% 0.1% Empty Homes (>6mths) data not available Unoccupied Homes (<6mths) data not available School Roll (secondary) 1065 1091 1111 1147 1178 113 11% School Roll (primary) 1143 1079 1077 1256 1252 109 10% Page 132 of 222
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15 Recommendation For the purposes of defining the potential extent of a Short Term Let Control Area, an impact threshold of 10% was identified as an appropriate indicator of where impact was significant, relative to postcodes districts with lower impacts. Postcode districts above 10%, (identified in the Highland Perthshire Housing Market Area and Mount Blair Community) were analysed as a whole illustrated in table 11, below. Table 11. Proposed Short-Term Let Control Area (STLCA) The STLCA as a whole, shows an impact of self-catering and second homes of 16.3% and resulting potential impact on primary school roles, reflected in the total fall of 1%. Notably the impact indicator of 16.3% is fairly similar to the Badenoch and Strathspey indicator of 17.77%. The number of short-term lets that would be returned to permanent residential homes through a Short-Term Let Control Area is unknown and will emerge during the planning certificate of lawfulness process. Conclusion This paper has assessed the numbers of potential short-term lets using proxy data and used qualitative data to understand in which communities there are concerns of excessive competition with commercial tourist accommodation in the local housing markets. It is recommended that the threshold of 10% is a potential indicator of the pressure threshold. A short-term let control area would potentially require up to 600 Certificate of Lawfulness or planning applications to be made and will represent a burden on the business operators as well as the council but would offer clarity in the planning system for business operators. The return of properties to permanent residential dwellings will be significantly less than the 8% potential lets identified in this study, due to self-catering units already with planning permission, and will depend on the operation of the policy framework to support planning decisions. More concrete data should be available from October 2023 once the registration of existing lets is complete under the Short-term Lets Licence scheme and it is intended that the study will be updated at that time to STLCA 2021 change % change % of Total Hsg Stock 2021 P&K Change over Period Badenoch & Strathspey Change Self Catering Units (SCUs) 634 8.3% 25.0% 12.16% Second Homes 614 8.0% 1.1% -8.13% Total Second homes & SCU 1248 16.3% 11.4% 2% Council Tax Listings (includes 2nd homes) 7038 91.7% 3.5% 1.65% Potential Total Housing Stock 7672 100% 3.8% 3% % of potential Housing Stock used as second homes & SCU 16.3% 16.3% 0.2% Short Terms Lets on AirBNB 655 9% 3.63% Private Lets 1781 23% House Completions (inc. small site ave.) 55.6 +197 2.6% 0.0% Affordable Completions 12 +36 0.5% 1.3% Purpose built SCUs (Approved applications) 42 +93 1.2% 0.0% Empty Homes (>6mths) 0.8% 36.09% Unoccupied Homes (<6mths) -9.7% School Roll (secondary) 1340 61 5% School Roll (primary) 1492 -77 -5% Total 1% Total -1% Total -2.51% Page 133 of 222
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16 inform future decisions. However, this study indicates that the case can be made for a Short Term Let Control Area in the areas outlined in Figure 1. Reference List 1. Scottish Government (2019) Research into the impact of short-term lets on communities across Scotland Short-term lets - impact on communities: research - gov.scot (www.gov.scot) 2. Arneil Johnson (2022) PKC Draft Housing Needs and Demand Assessment Arneil Johnson (2022) PKC LHS Briefing Slides 3. 3. Arneil Johnson (2022) PKC Tayside Briefing Slide Tayside Housing Needs and Demand 4. Communities Housing Trust (2022) PH8 Community Housing Needs Survey 5. Highland Council (2022) Committee Report for the Economy and Infrastructure, Committee 2nd December 2022. Page 134 of 222
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Appendix 2 CHANGE OF USE OF RESIDENTIAL PROPERTY TO SHORT-TERM LET NON-STATUTORY PLANNING GUIDANCE CONSULTATIVE DRAFT 7 Page 135 of 222
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Introduction The Council is aware that communities are becoming increasingly concerned that the increase in short-term lets over recent years is impacting on the availability and affordability of housing locally, and is having a secondary impact on jobs, services and business opportunity. Whilst the short-term letting of a residential property can bring economic benefits both to the host and the local area, this must be balanced against the impact the loss of that residential property has on the availability of housing for local people, and in particular access to affordable housing. There is no specific policy basis in the current Perth & Kinross Local Development Plan 2 (LDP2) for the control of short-term lets. This planning guidance has therefore been prepared to assist in the assessment of planning applications for the change of use of a residential property to a short-term let and would be applied across Perth and Kinross National Planning Framework 4 (NPF4) sets out the policy framework for assessing planning applications: Policy 30 Tourism e) Development proposals for the reuse of existing buildings for short term holiday letting will not be supported where the proposal will result in: I. An unacceptable impact on local amenity or the character of a neighbourhood or area; or II. The loss of residential accommodation where such loss is not outweighed by demonstrable local economic benefits. This planning guidance sets out the circumstances under which the change of use to a short-term let will be supported, including where local economic benefit (as required by NPF4) can be demonstrated. Not all changes of use will require planning permission. More guidance on this can be found on the Council’s website: www.pkc.gov.uk/shorttermletsandplanning Consultation We would welcome comments on this planning guidance by Friday 18 August 2023. You can submit your comments via the Council’s Consultation Hub: https://consult.pkc.gov.uk/ Following the consultation period, the guidance will be finalised and reported back to Committee for approval. Page 136 of 222
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Definitions and Exclusions The focus of this planning guidance is Material Change of Use of dwellings and Short-Term Lets; defined in planning legislation as: Material change of use of land or buildings is included within the definition of development even if there are no physical alterations to the land or building. Planning permission is always required for a material change of use. A change from a flat to a short-term let is always considered to be a material change of use requiring planning permission. For residential property, the significance of the change must be considered. There are a number of factors which may affect the Council's consideration of whether the change of use is a material change of use. Factors include a change to local amenity or the character of a neighbourhood or area, safety and impact on immediate neighbours. Short-term let is defined as being provided in the Town and Country Planning (Short-term Let Control Areas) (Scotland) Regulations 2021 where all of the following criteria are met- (a)sleeping accommodation is provided to one or more persons for one or more nights for commercial consideration, (b)no person to whom sleeping accommodation is provided is an immediate family member of the person by whom the accommodation is being provided, (c)the accommodation is not provided for the principal purpose of facilitating the provision of work or services to the person by whom the accommodation is being provided or to another member of that person’s household, (d)the accommodation is not provided by an employer to an employee in terms of a contract of employment or for the better performance of the employee’s duties, and (e)the accommodation is not excluded accommodation. The regulations make a number of exclusions from the definition of a short-term let including: • Hotels • Boarding houses • Guest houses The above are therefore not included within the scope of this Guidance. Whilst B&Bs are not specifically mentioned, the Town and Country Planning (Use Classes) (Scotland) Order 1997 classifies these as ‘houses’. Any residential property being used as a B&B within the definition of ‘Class 9. Houses’ is therefore also excluded from the scope of this Guidance: ‘Use as a bed and breakfast establishment or guesthouse, where at any one time not more than 2 bedrooms are, or in the case of premises having less than 4 bedrooms 1 bedroom is, used for that purpose’ Page 137 of 222
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Town and Country Planning (Use Classes) (Scotland) Order 1997 Class 9. Houses For clarity other related definitions are: Dwellinghouse or residential property is as defined in Planning Circular 10/2009: Planning Enforcement as ‘An independent dwelling (with its own front door, kitchen and bathroom) being accommodation which ordinarily affords the facilities required for day-to-day private domestic existence such as a house, flat, cottage’. Secondary let - means the letting of a property where the host or operator does not normally live. The planning guidance cannot apply to Home-letting or Home-sharing (see below). Home-letting - Defined in the short-term let licensing legislation means using all or part of your own home for short-term lets whilst you are absent, for example, whilst you are on holiday. Home-sharing - Using all or part of your own home for short-term lets, whilst you are there. Private Residential Tenancies are excluded under Section 26B(3) of the 1997 Act as they are not considered secondary accommodation because they are the principal home of the tenant. Draft Guidance Planning permission will not be granted if the proposal results in the loss of a residential property to the short-term let sector unless at least one of the following criteria are met: 1. The proposal is for the extensive refurbishment of a long-term empty residential property which will bring the building back into active use; 2. The proposal relates to a residential property with four or more bedrooms as this stock is considered less significant in terms of housing needs assessments; 3. It can be demonstrated that the residential property has been operating as a short-term let for more than 10 years and is therefore exempt from planning enforcement action; 4. It can be demonstrated that the proposal for the change of use to short-term let is part of a diversification scheme to support an existing Perth and Kinross business within the same landholding. Page 138 of 222
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In all cases properties must have their own door to the street to reduce the risk of adverse impact on the amenity of neighbouring residents. Proposals must also comply with all relevant LDP2 policies, in particular Policy 1 Placemaking: Development must contribute positively to the quality of the surrounding built and natural environment. Within a short-term let control area all new proposals for the change of use of a residential property to a short-term let will require planning permission. This requirement only applies to proposals submitted after the designation of the control area. Any short-term let which was operating lawfully within the control area prior to its designation will not be required to apply for planning permission retrospectively. Lawfully means any short-term let which either had planning permission or was not a material change of use and therefore did not require planning permission. For the avoidance of any doubt, a material change of use to short-term let either within or outwith a control area, before or after the designation of a control area, will require planning permission. More guidance on this can be found on the Council’s website at: www.pkc.gov/shorttermletsandplanning Page 139 of 222
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Appendix 3 Proposed Short-Term Let Control Area 16.05.2023 1 Figure 1: Perth & Kinross Council area showing postcode areas and the percentage of Total Potential Housing stock which are being used as self-catering and second homes combined. Principal Settlements 7 Page 141 of 222
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PERTH AND KINROSS COUNCIL Environment, Infrastructure & Economic Development Committee 31 May 2023 PERTH CITY OF LIGHT ACTION PLAN UPDATE 2023 Report by Head of Planning & Development (Report No. 23/172) 1. PURPOSE 1.1 This report updates the Committee on the City of Light Action Plan which was approved in 2016 and initial works commenced in 2017. The report reviews the outputs and outcome of the work undertaken to date, relative to the original objectives, and outlines works which have not yet been committed within the Framework Contract linked to the current pause on spend on the Lighting Strategy capital programme. 2. RECOMMENDATION 2.1 It is recommended that the Committee: • notes the content of this report and appendices which provide the Committee with information on the background to the City of Light Action Plan, outputs and outcomes achieved and • notes remaining proposed lighting at St John’s Kirk, City Gateways, Perth Vennels and required maintenance costs which have yet to be committed • considers the remaining proposed projects and refers any decision on future spend to Finance and Resources Committee. 3. STRUCTURE OF REPORT 3.1 This report is structured over the following sections: • Section 4: Background/Main Issues • Section 5: Proposals • Section 6: Conclusion • Appendices 4. BACKGROUND / MAIN ISSUES 4.1 In 2016, Perth and Kinross Council launched an ambitious vision for the City of Perth – the City of Light as part of the private and public sector led Perth City Plan (2015-2035) aiming to support growth of the city and its economy. The Perth City Plan developed via the Perth City Development Board, was 8 Page 143 of 222
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approved by the Council in February 2016 (Report 16/71 refers) 1. The of life. The Plan promotes cultural regeneration as a critical part of economic development activity involving both the development of new cultural assets and  in lighting, improved sustainability, and use of lighting infrastructure to animate the city, improve the visitor experience, support the hospitality sector and evening economy. 4.2 The subsequently commissioned City of Light Action Plan2 outlined objectives to inform the development of lighting projects and prioritisation of investment: • support development of the evening economy. • provide opportunities for businesses to benefit from enhanced turnover through increased visitation. • develop innovative approaches to lighting design which deliver safety and assists with orientation for both pedestrians and road users. • prioritise lighting designs that will reduce energy use, cost, and minimise light pollution. • develop and augment Perth’s character. 4.3 The Action Plan provided more detail on potential lighting projects and costs based on these objectives. It also included a methodology of procuring design linked with investment in low carbon street lighting, enhanced use of lighting infrastructure for digital use and interaction, and lighting projections. 4.4 At the Council meeting on 22 June 2016, capital funding of £8.9 million was allocated to placemaking and £5 million to the lighting strategy (Report No.16/277 refers) 3 to support both the City Plan and the City of Light Action Plan. 4.5 The resources for projects within the Placemaking and Lighting capital programmes were agreed at the Strategic Policy and Resources Committee in April 2017 (Report No.17/153 refers) 4 4.6 Following approval of funding, a new Framework to deliver the City of Light Action Plan was set up through Public Contracts Scotland following discussions with procurement, legal and other internal stakeholders. The Framework sought to award a competent, qualified, and experienced Architectural/ Lighting Designer, either through one company or a collaboration of companies, who could be used to develop plans proposed within the City of Light Action Plan from design to installation and commissioning. 4.7 The Framework was established to allow the Council flexibility in delivering different projects in the Action Plan. This was due to the co-dependency with the delivery of other related capital investment in the public realm and buildings, as well as time to acquire leaseholds/legal agreements with different owners where required. The implementation programme was in effect paused for an 18-month period as a result of restrictions/capacity during the Page 144 of 222
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pandemic, however design and purchase of equipment continued to be progressed. 4.8 Expenditure has been regularly monitored and reported as part of the capital budget reporting process, albeit without full detail of the lighting project designs. 4.9 Placemaking and lighting resources within both capital programmes were aligned and moved to the cultural investment programme to consolidate resources and accelerate investment in the surrounding public realm, routes linking cultural venues and creative lighting. This increased the capacity for the integration and development of public art with enhanced use of surrounding space and routes, for events and markets, along with the improvement and animation of adjacent buildings. 4.10 From the original £5m Light Action Plan budget, £500k was wired in 2018 to meet the costs of external lighting of Perth Museum and surrounding public realm (SP&R Report No. 18/285 para 3.3.3 refers). In 2018 £65k was also vired to support wider works to the regeneration of St. Paul’s Square. 4.11 By the end of the financial year 22/23 total project spend, including the virements to other projects, was £3.253m. A further £963k of agreed and committed works are currently underway for delivery in 2023/24. These were committed before the freeze on the capital programme agreed at Finance and Resources Committee on 30 November 2022, and the continued freeze for the Lighting Strategy agreed as part of the capital budget setting in March 2023. Full details of all projects are identified in the Appendix. This leaves a balance of £784k for works which have been identified but not yet committed. 4.12 The impact of lighting projects implemented to date has generated some of the highest levels of local engagement through social media and achieved global international reach and recognition because of renowned international lighting artists involved in installation and lighting projection content. Equally, business benefits in driving footfall to the city centre have been assessed and quantified as part of lighting events indicating growth in visits, dwell time and expenditure in hospitality businesses in the winter months. It is acknowledged, however, that there is strong opinion that lighting investment should not be a priority in the current economic climate because of cost and environmental considerations. To allow objective consideration of these issues, local benefits, and those from established lighting investment in national and international comparators are highlighted in the Appendix along with details of relatively low operational and running costs from technological improvements in lighting projects which have been implemented. 4.13 It should also be noted that the implementation of lighting projects is linked with wider place-based investment plans. The Sustrans Community Links Plus programme, applied for in 2019, to deliver the Perth People Place (PPP) project, is now progressing to design stage. This includes resources of £11.083m from eligible projects identified in the Placemaking and Lighting capital programmes to use as match funding towards construction costs. Page 145 of 222
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4.14 Funding through Transport Scotland is currently being investigated to ascertain if the PPP project can be financially assisted as it offers 100% contribution towards construction costs. This would negate the need for match funding. 4.15 Should the funding through Transport Scotland be secured, then this may remove the reliance on Sustrans match funding. It could create opportunities to lever further funding from Creative and/or Event Scotland or business sponsorship to sustain further investment in lighting as part of capital project delivery. 4.16 The programme for lighting projects is formalised around one year in advance to allow design and equipment to be ordered via the Framework to ensure the spend can be met that following year. At present, the majority of spend for 2023/24 is committed, in line with the agreed freeze on spend in this area. However, we require at this point to be commissioning the remaining planned projects that would finalise spend for 2023/24 and those that would be due to be delivered in the final year 24/25 to complete the Plan. 4.17 The Appendix covers full context, budgetary information, economic impact, evaluation, reach and impact, costs of running lighting, summary of benefits, projects completed/ in progress and due to be completed this year. 5. PROPOSALS 5.1 Investment in lighting to aid the regeneration and repurposing of city and town centres to complement cultural investment and animate the city at night remain important. This is with particular reference to encouraging increased use and extending dwell time to sustain the evening economy and hospitality sector, given the impacts of two years of Covid restrictions, the knock-on impacts of the war in Ukraine and cost of living crisis. Those places with good food and drink offers and an experience that welcome and excite customers and visitors are those that are most likely to be able to sustain activity and support future growth. 5.2 As well as installing feature and architectural lighting, the use of forms of lighting or lighting structures to create cultural attractions that aim to stimulate, raise social interaction and activity are a core delivery requirement with a view to the creation of a permanent night-time light art trail. This would make Perth the first UK to city to have this as a cultural attraction within its city centre. 5.3 Several installations are complete (which have had significant coverage through media) and would be considered marketable as ‘Creative Lighting’ schemes including those at Perth Bridge, St. Paul’s & Fergusson Gallery, and ‘Light Art Installations’ in Cutlog Vennel and Burt’s Close. However, officers consider that these alone would not be considered enough to market Perth with a ‘permanent light art trail.’ Page 146 of 222
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5.4 Once we have completed other Light Art installations that are currently underway and due for installation over the next 10 months in Guard Vennel, High Street, the Art Gallery & Skinnergate, awareness of the trail would be promoted through online channels and an app and marketing and promotion with VisitScotland. This will promote not only lighting works but other cultural attractions in the city, particularly the opening of Perth Museum. 5.5 The remaining uncommitted works, costed at £784k from the original allocated budget take the City of Light Project as a whole to its completion are for; Gateway features, planned at Dunkeld Road, Glasgow Road, Dundee Road and within the City Centre as part of works to The Golden Route (£450k). Upgraded and enhanced architectural lighting at St. Johns Kirk (£120k). Light art installations within City Vennels, planned at Oliphants, Baxter’s Close, Watergate & Fleshers (£129k) and £85k funding set aside to cover maintenance of the lighting asset. Programme completion would allow a comprehensive lighting experience to be promoted to sustain and support growth of the evening economy. 5.6 The Committee is asked to consider these remaining works and refer any views back to the Finance and Resources Committee for decision. Officers will continue to seek to secure alternative resources to sustain activity and complete the works which have yet to be committed to through: (i) integration of funding for lighting within existing capital programme and revenue capital grant fund allocations for improvements in city and town centres and (ii) business sponsorship and external funding bids to Creative and/or Event Scotland. 6. CONCLUSION 6.1 Perth was originally the only city in Scotland looking to support the evening economy through an enhanced permanent night-time offer through lighting investment, although recently Aberdeen and Dundee have committed spend in these areas. 6.2 Further investment in lighting will encourage residents and visitors to visit the city in the evening and support development of the night-time economy. 6.3 Lighting is shown to improve well-being and enhance the quality of life for city residents by improved safety, reduced crime and vandalism. Lighting enhances the visitor experience and highlights the unique qualities of the city; helping to create a more cosmopolitan, vibrant, and interesting city. 6.4 As part of the recovery of the city, with resident and tourism volume and value still not back to pre-pandemic levels, officers consider that the city requires an offer that sustains existing business and supports growth. In that respect officers consider a proactive approach to investment is needed to encourage increased use of the city centre as a place for social interaction, greater dwell time in the evening and increased use by visitors and locals alike. Page 147 of 222
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6.5 A comprehensive, sustainable well-lit city with creative and architectural lighting would have a USP and would complement the wider investment in cultural attractions and help to develop Perth as a more appealing destination not just for day visitors but for overnight and longer stays. The progress and benefits of current work implemented through the City of Light Action Plan should be noted and efforts made to sustain activity through consideration of funding for previously agreed work via the capital programme and/or integration within agreed capital projects, revenue capital grant assistance, business sponsorship and external funding support. 6.6 At a time when the High Street and city centre is facing significant challenges and change, completion of proposed lighting investment delivers a comprehensive and unique offer for Perth and, in particular, supports the development of the night-time economy. Author Name Designation Contact Details Alan Farnington City Development Project Officer ComCommitteeReports@pkc.gov.uk Approved Name Designation Date Barbara Renton Executive Director (Communities) 22 May 2023 APPENDICES • Appendix 1 – Perth City of Light Updated Information May 2023 REFERENCES/REPORTS 1 Report 16/71 (The Perth City Plan 2015-2035) 2 City of Light Action Plan 3 Report 16/277 4 Report 17/371 Perth City Plan Edition 3 (2019-2040) Page 148 of 222
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ANNEX 1. IMPLICATIONS, ASSESSMENTS, CONSULTATION AND COMMUNICATION Strategic Implications Yes / None Community Plan / Single Outcome Agreement Yes Corporate Plan Yes Resource Implications Financial Yes Workforce Yes Asset Management (land, property, IST) Yes Assessments Equality Impact Assessment n/a Strategic Environmental Assessment n/a Sustainability (community, economic, environmental) n/a Legal and Governance n/a Risk Yes Consultation Internal Yes External Yes Communication Communications Plan Yes 1. Strategic Implications Community Plan/Single Outcome Agreement 1.1 This report supports priorities within the Community Plan 2022-27. (i) Reducing Poverty (including child poverty, fuel poverty and food poverty) (ii) Mental and physical wellbeing (iii) Digital participation (iv) Skills, learning and development (v) Employability Corporate Plan 1.2 This report supports the objectives within the draft new Corporate Plan: - (i) Children and young people grow up safe, respected, well-educated, and confident in their ability to realise their full potential; (ii) People and businesses are increasingly able to prosper in a local economy which support low carbon ambitions and offers opportunities for all; (iii) People can achieve their best physical and mental health and have access to quality care and support when they need it; (iv) Communities are resilient and physically, digital, and socially connected. Page 150 of 222
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(v) Perth and Kinross is a safe and vibrant place, mitigating the impact of climate and environmental change for this and future generations. 2. Resource Implications Financial 2.1 There are no direct financial implications arising from this report other than those reported within the body of the main report. Workforce 2.2 There are no workforce implications as a result of this report. Asset Management (land, property, IT) 2.3 There are no direct asset management implications arising from this report other than those reported within the body of the main report. 3. Assessments 3.1 Under the Equality Act 2010, the Council is required to eliminate discrimination, advance equality of opportunity, and foster good relations between equality groups. Carrying out Equality Impact Assessments for plans and policies allows the Council to demonstrate that it is meeting these duties. 3.2 The information contained within this report has been considered under the Corporate Equalities Impact Assessment process (EqIA) and has been assessed as not relevant for the purposes of EqIA. Strategic Environmental Assessment 3.3 The Environmental Assessment (Scotland) Act 2005 places a duty on the Council to identify and assess the environmental consequences of its proposals. 3.4 However, no action is required as the Act does not apply to the matters presented in this report. This is because the Committee are requested to note the contents of the report only and the Committee are not being requested to approve, adopt, or agree to an action or to set the framework for future decisions. Sustainability 3.5 The proposals have been considered under the provisions of the Local Government in Scotland Act 2003 and the Climate Change (Scotland) Act 2009 using the Integrated Appraisal Toolkit and will contribute to the sustainable development of Perth and Kinross where it supports promotion of. Page 151 of 222
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Legal and Governance 3.6 No issues as the proposals use established contract measures. Risk 3.7 Risks and the controls required to mitigate any risks will be reported through the Council’s risk management process where the Council is the lead on individual projects. 4. Consultation Internal 4.1 The Head of Legal and Governance and Head of Finance were consulted in preparation on reports that lead to City of Light Action Plan funding. External 4.2 Initial proposals were considered and supported as part of the consultation with the public and businesses on the Perth City Plan. 5. Communication 5.1 Communications promoting opportunities for participation will be undertaken via PKC and Perth City Centre Management media channels. 2. BACKGROUND PAPERS 2.1 Papers are linked within the body of the main report. Page 152 of 222
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Perth City of Light Updated Information May 2023 8 Page 153 of 222
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2 Contents Background and Context ......................................................................................................................... 3 Budgetary information ............................................................................................................................ 5 Economic Impact ..................................................................................................................................... 7 Evaluation of Longer Term/permanent works........................................................................................ 9 Reach, engagement, and impact of the Light Action Plan .................................................................... 14 Cost of running lighting ......................................................................................................................... 21 Summary of Benefits of the Project ...................................................................................................... 23 Projects completed or in construction phase ....................................................................................... 27 Works Issued with expected completion in 2023/24 ........................................................................... 43 Design Briefs Still to be issued: ............................................................................................................. 49 Appendix A: Riverside Lights 2018 Evaluation ..................................................................................... 56 Page 154 of 222
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3 Background and Context In 2016 Perth and Kinross Council launched an ambitious vision for the City placing culture at the centre of economic redevelopment activity and making best use of new technologies in lighting to make visual and visitor experience improvements to the City whilst improving the sustainability of the lighting infrastructure. The plan delivered conceptual designs and outline proposals to provide a consistent series of lighting initiatives to create unique, vibrant, and attractive evening scene to aid in delivering Perth’s ambition to become a leading European small city. In addition to delivering an enhanced residential and visitor experience the proposals are designed to help deliver a more sustainable and connected Perth. Lighting can be crucial to support a transition from functional interventions focused on public safety, such as temporary wider walkways and bike lanes, into something that is part of a longer-term recovery plan that supports the night-time economies by unlocking outdoor social spaces for night- time use and events, improving night-time journeys, etc. Lighting can play a pivotal role in revitalising high streets and town centers by enhancing the attractiveness of the environment, improving perceptions of safety, and ultimately increasing footfall, dwell time and spend. Lighting interventions can quickly create performance space, for community and professional use; facilitating the human connections that build community resilience. In the long term, they can develop through considered design into permanent facilities promoting sustained economic and social benefits in the daytime and after dusk. As well as installing feature and architectural lighting which have to date illuminated the likes of Perth Bridge and St Pauls Square within the lighting plan the use of forms of lighting or lighting structures to create cultural attractions that aim to stimulate, raise social interaction and activity are a core delivery requirement. To that end the plan was further developed with a view to create a permanent night-time light art trail making Perth the first UK to city to have this as a cultural attraction. Light Festivals and shows are incredibly popular, seen not only by the delivery of our own Norie Miller Light Nights but the likes of the Enchanted Forest in Pitlochry, Spectra in Aberdeen, Lumiere in Durham & London, Light Up the Northeast etc where visitor numbers and desire to attend are always incredibly high and prove hugely popular and increase visitor spend to the area. They do however have large production costs and a limited period of time of impact whereas a permanent trail can be viewed year-round and create a visitor draw; with some installations also being effective during the day. In order to create a permanent light trail, in 2019 the first of a series of proposed light art installations was installed in Mill Street Perth. Further proposed commissions were subsequently delayed due to the pandemic however the second installation was completed in October 2022 with one further commission is due for installation April 2023 and two further installations programmed and commissioned for later in 2023. Page 155 of 222
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4 Other works in progress (outwith cultural lighting commissions) include Lower City Mills, Skinnergate, South Inch, Perth Theatre, Perth Art Gallery (building lighting) & Perth Museum. Notes £500k was vired in 2018 from the original £5m Light Action Plan budget directly to Property to meet the costs of external lighting of the new Perth Museum and surrounding public realm for that project. £65k was also vired to Property to support wider works to the regeneration of St. Pauls Square in 2018 leaving a total budget of £4.435m. The Officer involved in the programme took over the Creative Exchange project in Feb 2019 to see it through to its completion and official opening in Feb 2020 and as such was unable to deliver the full expected level of works within City of Light Action Plan that year. Similarly, having been re-tasked in April 2020 for the authorities Covid 19 resilience in PPE and Foodhub Operations and then finally the delivery of the Perth Vaccination Clinic in Bells Sports Center the officer was effectively, for a period of two years, focused on the operations and only able to pick up occasional work from the project(s) - As well as being periods on inactively from contractors’ ability to work due to covid regulations and illness. As a result of above works are considered to be around 1.5/2 years behind the initial target for full completion of the project however the bespoke Framework contract that was developed has allowed the flexibility of timeline around progressing certain schemes at certain times in order to deal with the likes of planning consents and establishing agreements with Stakeholders such as Structures, Greenspace, Street Lighting, 3rd Party organisations, public and private building owners and as such has enabled space and time naturally within the contract to deal with the unforeseen events around the Pandemic. Page 156 of 222
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5 Budgetary information As shown in the table below, the costs of works for the Lighting Action Plan carried out to 31st March 2023 and budgets committed to St Paul’s and the Perth Museum project, total £3.253m of the £5m budget, leaving a total budget for future works of £1.747m. Contracted works to the value of £0.963m are planned for financial year 23/24 which leaves £0.784m of budget for future planned works which have at this time not been legally committed. The budget reported to the Finance & Resources Committee on 26th April 2023 (Report No. 23/121) for 22/23 through to 24/25 totalled £2.752m (22/23 £0.875m, 23/24 £1.200m and 24/25 £0.677m). The final outturn for project costs for 22/23 was £1.005m (unaudited) leaving a total budget for 23/24 and 24/25 of £1.747m. Costs of works to 31.3.2023 Contracted works/In progress Works/Costs not committed Totals Perth Bridge £337,000 £337,000 Queens Bridge £70,000 £70,000 Norie Miller £347,000 £347,000 St. Matthews £61,000 £61,000 Lower City Mills (city centre) £16,000 £134,000 £150,000 Perth Art Gallery £15,000 £125,000 £140,000 Perth Theatre £5,000 £116,000 £121,000 Perth Concert Hall (city centre) £99,000 £41,000 £140,000 Sherriff Court £42,000 £42,000 St. Pauls £166,000 £166,000 Library £72,000 £72,000 St Johns Kirk £120,000 £120,000 Aberfeldy/Pitlochry £72,000 £12,000 £84,000 Gateways (x3) £450,000 £450,000 Fergusson Gallery (city centre) £155,000 £155,000 Winter Animals (city centre) £115,000 £35,000 £150,000 North Inch (City Centre) £85,000 £85,000 South Inch (city centre) £127,000 £83,000 £210,000 Mill street - Projection Installation £100,000 £100,000 Guard Vennel (vennels) £78,000 £50,000 £128,000 Cutlog Vennel - Nathan Coley (vennels) £120,000 £120,000 Skinnergate (vennels) £35,000 £45,000 £80,000 High Street Columns (city centre) £37,000 £120,000 £157,000 Vennels - Kirk Close/Watergate/Oliphants/Baxter’s etc £50,000 £43,500 £129,000 £222,500 Various City Centre interventions/Design fees/equipment etc £223,000 £223,000 Wellmeadow/Scone £14,000 £14,000 High Street Perthshire Women Mural £8,500 £8,500 Page 157 of 222
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6 Maintenance Stock Inventory £50,000 £50,000 Maintenance of Assets/Lighting £85,000 £85,000 3rd Party Design Fees/Reports £28,000 £28,000 Project Support Costs £239,000 £80,000 £319,000 SUBTOTAL £2,688,000 £963,000 £784,000 £4,435,000 Perth Museum (Budget transferred to overall project) £500,000 £500,000 St Pauls Sq. (Budget transferred to overall project) £65,000 £65,000 TOTALS £3,253,000 £963,000 £784,000 £5,000,000 Projects completed or in construction phase are: Perth Bridge – Completed July 2019 Norie Miller/Rodney Parks – Completed Nov 2019 Meander Light Art Installation – Completed Nov 2019 St Matthew’s Church – Completed June 2019 Aberfeldy Square – Completed March 2020 St Pauls Church – Completed June 2021 North inch Lighting – Completed Nov 2020 Pitlochry & Aberfeldy War memorials - Completed Oct 2020 Various City Centre interventions/Design fees/equipment etc Vennels - Kirk Close/Watergate/Oliphants/Baxter’s etc Perth Sherriff Courthouse – Completed Apr 2022 Cutlog Vennel – Nathan Coley – Completed Oct 2022 Perth Concert Hall – Completed Dec 2022 Perth Library Stage 1 – Completed Dec 2022 Winter Animals year 1 – Completed Nov 2022 Fergusson Gallery – Completed Feb 2022 Guard Vennel – Completed April 2023 Skinnergate – Completed May 2023 South Inch – Due to be completed end May 2023 Works Issued with expected completion in 2023/24 Perth Art Gallery Light Commission & Building - Oct 2023/Feb 2024 Queens Bridge – Oct 2023 Aberfeldy Stage 2 - Aug 2023 High Street Columns Commission - Nov 2023 Perth Theatre - Aug 2023/Jan 2024 Winter Animals Year 2 – Nov 2023 Lower City Mills - 2024 (dependent on other building works) Design/Work Briefs not issued: Gateway Entries St Johns Kirk City Vennels (Kirk Close/Watergate/Oliphants/Baxter’s etc) Maintenance of Lighting Assets Page 158 of 222
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7 Economic Impact As per the Impact Analysis April 2017 a clear approach to lighting is crucial to the performance of the city’s evening economy, specifically its population-driven industries. These industries mainly include consumer services businesses in the areas of retail, entertainment, hospitality, and tourism. By encouraging an increased length of visit and by attracting more visitors to the city, the lighting strategy will contribute to businesses with an opportunity to capture a greater proportion of expenditure from a larger expenditure pool. 57% of residents surveyed in retail studies indicate they have never visited Perth City Centre after 6pm, this imbalance and underutilised resource is highlighted in additional expenditure of up to circa £140M that is currently being untapped from resident expenditure. Lighting is also an area of intervention that provides cost-effective solutions that can ensure a quick win for authorities and developers looking to make improvements. Over the years, more and more local governments have hosted light festivals to support the local economy, particularly during seasonal slumps and the winter periods, promoting the night-time economy on a temporary basis. These events are particularly relevant in towns with a developed or developing tourist industry. Evidence has shown light festivals are a cost-effective mechanism (relative to the return on investment) to attract significant increase in visitors, particularly out of town visitors, and increase revenue generated for local businesses. Riverside Night Lights As part of the plan for Perth a lighting event was held at Norie-Miller Park (now known as Perth Riverside Night Lights) in Perth over 18 nights through to February 14th, 2017, to provide both the public and visitors with an exciting example of future lighting projects for the city. The event has been a major success with visitor numbers of over 51,000, far exceeding the original estimations. The event was repeated in 2018 over 19 nights with numbers more than 53,000 attending, and just under 60,000 in 2019 over a 16-night run cementing the event in Perth & Kinross Winter Festival Calendar. It returned in 2020 just before the pandemic but running a shortened period of nine nights but still with numbers in excess of 4000 per night on average. While the event is delivered through the Winter Festival programme the City of Light Action Plan has provided permanent lighting infrastructure throughout the park, with a view to making the area more attractive to visitors year-round and in the evening. In addition, the likes of projectors purchased thought the project have been able to be used on site to provide more content and remove revenue pressures for delivery of the event. In 2018 an evaluation of the event was undertaken looking at the economic Impact from visitors to the lighting event for the local economy the evaluation of which is included as an appendix at the end of this report. In summary the economic impact of Riverside Nights was estimated at £744,510.33 when transformed into net spending. Page 159 of 222
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8 £356,566.05 was estimated to have been generated by visitors from non-Perth & Kinross Council post codes. £387,944.28 was estimated to have been generated from visitors from within Perth & Kinross post codes. Including the 1.25 sub-regional multiplier it was estimated the total net worth of the event to be £930,637.91. Light Festivals General Other lighting events around the UK and the world have similar levels of return from evaluation with their visitors. Collated figures have demonstrated SPECTRA, Aberdeen’s festival of light, which runs over 4 days had had over £700,000 impact to the local economy in 2017 with footfall levels increasing year on year before and after Covid restrictions. Figures published by Aberdeen City Council demonstrate the value the event adds to the local economy. The 2017 event had an estimated output £685,872, which includes £403,454 of visitor spend and additional investment to the city as a result of the festival taking place. Over and above this figure an additional £314,453 was brought to the local economy through the spend by residents while attending the festival. 2022 and the post-pandemic restrictions saw Bristol host the return of the Bristol Light Festival and the highly anticipated return of the event had incredibly positive results. The findings of an independent financial and visitor analysis report confirmed that the six-day event of stunning light installations attracted 170,000 visitors to the city and brought an additional spend of £3.4m into city centre businesses as a direct result of the event. Durham Lumiere the best known of UK light events is always popular, the 2019 event - the 10th anniversary - saw the festival pass the one million visitor’s mark. The 2019 exhibits received around 165,000 visitors, and 240,000 visitors went to see Durham Lumiere in 2017. The evaluation of the 2018 festival demonstrated a significant boost to the economy, with a figure of £9.5m of economic benefits, according to the event organisers. Copenhagen Light Festival is Europe’s most popular an annual light festival that transforms the quiet and cold winter darkness into a unique celebration of light art, lighting design and illumination in the center of Copenhagen. In three weeks of February the festival presents a wide range of light-based works – such as sculpture, installation, projection mapping, event and illumination created by both established and upcoming light artists, lighting designers, students and organizations and attracted over 500k visitors in 2021 What makes the Copenhagen festival different is that it already has a portfolio of permanent light and light art installations (around 25) which the light event utilises to builds upon to create the largest European Light event however the permanent installations provider that constant visitor attraction year on year and outwith the light festival period. Page 160 of 222
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9 Evaluation of Longer Term/permanent works An event/festival offers a unique way to engage with visitors and account for numbers. It is obviously more difficult to gauge the impact of permanent installations in that they are not within the confines of a specific event space and outwith standard street counters we have no way to physically measure people’s movements throughout the City Centre (although this is being investigated by using phone tracking via Bluetooth to show accurate evaluation). There are also issues now with measuring year ‘v’ year movements due to two years of covid restrictions skewing figures with people unable to visit places, businesses being closed etc. We can however look at the impact of longer-term installations carried out elsewhere prior to the pandemic to see how these drive footfall. York York took the decision in 2017 to expand their winter illumination so that they were in operation from early November to the end of February, extending the traditional Christmas lighting period by some 10 weeks to drive numbers to the city especially with a view to the evening economy and darker nights of winter. This was hailed a resounding success and helped drive visits to the city during the off-peak tourism season. Visits to attractions and hotel occupancy levels were all up over the period and the lighting proved popular with both visitors and residents alike. From November to December there was a 13.2% increase in rail journeys to the city (19 November – 23 December). At the same time footfall into the city was up by 1.3% year on year, bucking the national trend, and coach bookings were up by 8%. Visits to attractions were 5% higher year on year with those attractions with Christmas events and exhibitions benefitting the most from these extra visitors. York Business Improvement District (BID) and Make It York, the city’s Destination Management Sally Greenaway, Head of Visit York, a part of Make It York, said: “The winter months are a vital time of year for local businesses and the tourism industry, and we’re delighted the winter lighting scheme has been so popular. Now that the festive season is behind us it is crucial York continues to attract visits during the traditionally quieter months and the Winter Lights scheme has added a new dimension, drawing in shoppers and visitors to enjoy the city lit up by night.” Copenhagen & Others As mentioned previously Copenhagen hosts Europe’s largest Light festival but this was created on the backdrop of other permanent installed works in the City, in total around 25 light art and public realm creative lighting initiative. Similar styles of delivery are found in San Francisco and London City. https://copenhagenlightfestival.org/permanent-installations/ https://www.sftravel.com/article/installations-see-illuminate-sf-light-art-trail https://canarywharf.com/the-estate/art-culture/art-on-the-estate/ Page 161 of 222
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10 Consideration in Perth What this demonstrates is an appetite for visitors to not only attend light festivals but when a sufficient amount of permanent light art/creative light installations are delivered this creates a trail that is a year-round attraction, persuading desire to visit and to be around the installations in the evening – in our case the City Centre. While some installations are complete (which have had significant coverage through media and socials individually) and would be considered marketable as ‘Creative Lighting’ schemes in those at Perth Bridge, St. Pauls & Fergusson Gallery, and ‘Light Art Installations’ in Cutlog vennel and Burts Close these alone would not be considered enough to market Perth with a ‘permanent light art trial’. Until we have completed at least the four other installations that are currently underway and due for completion over the next 10 months in Guard vennel, High Street, the Art Gallery & Skinnergate it would be ineffectual to start marketing them as a whole offer. Without around 10-12 pieces we would be selling short the unique offer of what we are now producing in the formation of the UKs only permanent City Centre Light Art Trail. Additional Winter Lighting Offer On top of the permanent installations and a cultural Light Art Trail the start of the formation of a ‘winter light trail’ around the City Centre with non-permanent pieces over the extended winter period was installed as part of the Winter festival offer near the end of November last year. Winter Light trails are incredibly popular where they have been introduced, the likes of London, York, Bournemouth and indeed Perth Australia all have some sort of winter light trails. The Christmas Lights Trail in Perth Australia which uses various light displays and projections, some of which are Christmas themed, are placed in and around the Perth central business district in Western Australia. The event first occurred in 2017, in which there were 16 displays located around the city centre. In 2019, there were 27 displays, including a new, smaller trail at Claisebrook Cove in East Perth. The event brought in approximately 333,000 visitors to the City of Perth. In 2020, there was another new trail, this time in West Perth. There were 30 displays in total attracting nearly 400,000 people. It was recognised at the Western Australian Tourism Awards in 2021 where the 2020 event received gold in the Major Events and Festivals category. Perth Wildlife Light Trail The ‘Perth Wildlife Light Trail’ in Perth ran from November until late January & provided further enhancement and offer to the City Centre and again provides a different winter offer to other cities in Scotland. The bespoke designs were produced as a modern take on festive lighting and play on one of Perthshire biggest assets in wildlife consisting of a King Salmon, Stag, Otter, and Unicorn as the first part of this concept. Page 162 of 222
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11 Owing to their being insufficient time prior to the delivery of the first four pieces last year to inspect the suitability of the manufactures work and tight time scale for the delivery we did not market the animals prior to their installation as we did not want risk the works either not landing in time or the works not being to the standard desired. However, we can now be assured of the level of work and effect of the pieces as well as monitoring through socials the way they have been well received by the public and we can move forward to promotion of the pieces to a wider audience as part of the 23/24 Winter festival. The plan is to introduce more installations year on year (The two pieces being designed for 23/24 are Osprey and Red Squirrel) to create a larger winter trail around the city centre businesses to increase footfall to locations and provide that differing offer to the likes of Edinburgh and Glasgow. The actual light animals have already attracted interest in rental of pieces outwith the Perth Winter Festival period from operators owing to the ‘non- Christmas’ theme which allows lots of possibilities of use. Perth Australia Christmas Trail Map Page 163 of 222
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12 Hospitality, Night-time businesses There has been significant impact to the hospitality industry since February 2020 with the pandemic, the cost-of-living crises and rising energy costs. Recent BBC analysis found in December 2022, 320 businesses in the food service industry – including restaurants, pubs, cafes, and catering firms, were forced to initiate corporate insolvency procedures. An increase of 41 per cent compared to the same month in 2019. Across the sector, UK Hospitality figures suggest almost 5000 venues closed permanently last year – with three quarters of these failing in the last six months of 2022. That equates to a contraction of around 5 per cent. Around nine out of 10 are independent venues, and the current tight margins and economic situation means that multi-site operator or medium sized businesses can’t take the sites over. Following two years of Covid restrictions, the knock-on impacts of the war in Ukraine have been one crisis too many for an already beleaguered sector. Major hikes in food prices are just part of the cost-price inflation for the sector – currently running at 18 per cent, double what it was at the start of 2022, and forecast to rise to about 20 per cent by April. Energy prices also continue to rise with many businesses having seen fuel costs double or even triple. The current crisis means that businesses would have to take 120 per cent of 2019 revenue just to stand still. Half of the sector is operating at or below break-even and a third have no reserves to rely on. Where businesses are not at breaking point, they are struggling to find staff and labour shortages in the sector are around 9 per cent. Footfall, meanwhile, is down due to pressures on household budgets – and with one in five people saying they plan to go out less to make ends meet, the outlook for 2023 is bleak. While the lighting strategy for Perth is not something that can cure the problem it does go some way to trying to create an offer in the City Center in the evening which outwith The Concert Hall, Theatre, Cinema, restaurants, and bars there is little else to try and entice visitors to town out of ‘high street’ trading hours. Even when the new museum is opened in 2024 it is unlikely to be open in the evening expect on specific exhibitions launches. It is therefore vital that Perth attempts to find offers that do not exist elsewhere and the lighting strategy is one of those areas that can provide that. Post Pandemic ARUP created a paper in September 2020 specifically looking at the importance of light within post pandemic recovery Noting that our night-time trends will likely change; perhaps altering our habitual social timings as businesses increase flexible working practices, or home workers join colleagues later in the evening to socialise. We may need incentivising to leave our homes and spend money after dusk. People will need to perceive a safe journey into town and feel welcome and secure when they arrive. Then, they will feel comfortable to dwell and support night-time economies. Lighting is a highly effective tool when combined with urban policy and benefits diverse stakeholders, but it is often overlooked. Page 164 of 222
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13 Once shops and offices close for the evening, levels of activity in urban centres drop. However, 50% of modern life takes place after dark. We must rethink the value of urban lighting beyond just a functional add-on for safety or beautification and recognise it as an opportunity and fundamental solution to improve town revenues and the quality of life for our citizens. https://www.arup.com/perspectives/publications/promotional-materials/section/the-role-of- lighting-in-supporting-town-centre-regeneration-and-economic-recovery Page 165 of 222
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14 Reach, engagement, and impact of the Light Action Plan The Light Action Plan has shown to have reach in terms of awareness online in the City of Perth in being able to show the city illuminated in various ways such as in respect for Remembrance Day, acknowledgement of cultural events, symbolic holidays which impact on residents, visitors, and those beyond and allow the City to be part of occasions thereby increasing knowledge of the City Worldwide. Press and Television coverage in propelling Perth into the spotlight has been delivered through a number of the installations. Nathan Coley (an artists shortlisted for Turner Prize and recognised as one of the highest profile light artists) and the installation in Cutlog vennel received national TV and media coverage as well as being picked up as far away as Canada and US. The work is the artists only permanent ‘public realm’ piece in Scotland and only one of two in the whole of UK. Kelsey Montagues Wing mural in Mill Street received international coverage being her first permanent piece in the UK getting significant traction through social media channels with the artist having over 150k followers including significant high profile international stars. The art commission for Perth Art Gallery in 2023/24 will receive significant media coverage UK wide with Chila Burnham being made an MBE and now one of the UK highest regarded artists since original commission was started. With similar style works having been displayed at The TATE, this will be her only permanent outdoor works worldwide. Similarly, Elisa Arteso who is undertaking the Guard Vennel Installation has been included in the world’s top 40 Women Light Artists so is now of high prominence. As well as attracting focus nationally and regionally on installation ‘Meander’, the large projected work in Mill Street, allows adaption and as such has allowed the authority to utilise the site for the likes of promotion of The Solheim Cup, to recognise the NHS/Key workers, VE Day 75, Pride events and The Big Big Art Project which was a two-week takeover every year which allows all PKC primary schools to display images and animations over that period. Other works such as Paula Thompsons glass finial columns installation due 23/24 in the High Street creates a direct link to one of Perth largest key industries of the past in highlighting Pullars Dye works, a significant business not only to the past of local residents but internationally known. This Installation on the High Street will also bridge the cultural quarter of Mill Street to the new Museum at the former City Hall. The illumination of Perth Bridge (Smeaton’s Bridge) since July 2019 and St. Pauls Square since June 2021 have allowed Perth to join a list of world-famous structures and buildings around the World such as Empire State Building, Sydney opera House, London Eye & Edinburgh Castle in using colour illumination in marking and acknowledging key dates throughout the year. At present we have in excess of 70 requests from charities, organisations, and PKC Equalities Team for requests for the lights to be set to a specific colour(s) and dedicated in tribute to an achievement, remembrance or acknowledgement of an official day or recognition. These include marking and showing support Ukraine and those affected, Remembrance, Baby Loss Awareness week, Cancer Awareness days, Perthshire Pride, Mental Health Days, Diwali, National Holidays, Polish Independence, St. Andrews Day and Burns night to name but a few. Page 166 of 222
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15 Social media outreach from PKC for illumination of the likes of Perth Bridge, St. Pauls, St Mathews etc have one of our highest responses and engagements for posts being in their tens of thousands with large volumes of shares, comments, and interactions. Similarly posts shared on Perth City and Towns and PKC Place development also have high activity and by linking to intranational dates of illumination of structures are shared worldwide and only help to raise the profile of the City. Posts are tagged and re-shared by the charities, organisations and partners forwarding them onto audiences who may have little awareness of Perth and thus creating a bridge to this gap. Page 167 of 222
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16 Cutlog Vennel – Nathan Coley Installtion, Selction of Media and Social Impacts Page 168 of 222
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17 Mill Street – Meander – Social Media and local community engagement Page 169 of 222
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18 Perth Bridge – Examples of Social Media and local community engagement Page 170 of 222
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19 St. Pauls – Examples of use/engagement Page 171 of 222
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20 Example of Facebook Reach for St. Pauls/Bridge Lighting (single posts) (Above taken from PKC Place Development Facebook) (Above provided by PKC Comms Facebook) Page 172 of 222
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21 Cost of running lighting The cost-of-living crises and increases in energy costs throughout 2022 have raised questions on the cost of running the architectural lighting however the lighting installed is highly cost effective and runs on a very low kw output. Taking the example of Perth Bridge (as the largest lighting installation) below gives the current running costs for information. Street Lighting have confirmed current costs for energy for lighting runs at 18.6p (per kWh) The Bridge has 86 LED lanterns on it that run at maximum total power wattage of 50 or 0.05KW RGBW lights generally generate colours/white from say anything from ¼ to ¾ of the lights on the fixture at any one time - so they rarely run-on full power consumption however the below costs have been calculated on the full power wattage to avoid any dubiety. The lights run on average each year at 5.33 hours a day, operating from sunset to midnight. This takes in account of a full year where say lights are only on for 2 hours in June but 9 hours in December. The cost of one 50 light watt fixture is calculated below: Page 173 of 222
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22 This equates to costs for the Bridge lighting of either: 5p per fixture per day or £4.30 per day for all 86 fixtures or £18.25 per fixture per year or £1,569.50 per year for all fixtures (all above based on maximum wattage) Essentially the 86 bridge lights are the equivalent of running 2 x 2kw heaters in a house (although the lighting unit price is cheaper than domestic prices) Street lighting mentioned in December last year they expect the until price to increase at some point next year by about 10p a unit so that would increase pricing to 28.6p which would take the daily cost over £6.55 per day (again however it should be less as we don’t run full power consumption) As a footnote it should be noted the new LED lighting on the bridge equated to what would be around a £1800 per annum saving on energy costs from what the previous lighting on the bridge would cost to run (albeit the lighting was turned off in early 2019 as half the fixtures were not operational at that point) Page 174 of 222
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23 Summary of Benefits of the Project While not exhaustive a number of benefits and risks have been identified and highlighted with regards moving into the final 1-2 years of the delivery of the programme. Benefit Organisational Impact and/or Service Impact and/or Impact on Asset Condition Benefit 1 Help to deliver one of the principal objectives of Perth & Kinross Council to provide a safe, secure and welcoming environment for its citizens and visitors. Benefit 2 Improved retail trade and the night time economy by encouraging citizens and visitors to remain in the city in the evening. Stimulate exposure and growth in evening/night-time economy of the city. Benefit 3 Provide facilities to assist in the Council’s objectives in delivering the national and local outcomes as part of the Single Outcome Agreement. Benefit 4 Improved well-being and enhanced quality of life for city residents by improved safety, reduced crime and vandalism, and increased offerings for enjoyment. Benefit 5 Highlights unique qualities of the city; and provides a stimulus for a more cosmopolitan, vibrant and interesting city. Benefit 6 The city can be made more legible and easier for people to use after dark, thus encouraging more people to use the city at night and also to walk or use public transport at night thus reducing car reliance. Benefit 7 Uplift in local property values in the long term due to the factors above. Benefit 8 Supporting the overall Placemaking Strategies in development of key programmes such as Tay Street, The Golden route, South Street etc. Benefit 9 Enabling existing staffing positions over the period to undertake the works required for implementing the Plan. Benefit 10 Support local talent in providing platforms for interest, engagement and opportunities to individuals, businesses and employers through the offers of the programme. Benefit 11 Help to aid in the overall recovery plan of the City following Covid 19 in not only stimulating artistic and lighting opportunities but in showcasing an offer in the public realm that can be enjoyed by everyone in a safe environment and encouraging people to the city centre. Benefit 12 Perth is the only City in Scotland looking to offer an enhanced permanent night-time offer through the Light Action Plan. Page 175 of 222
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24 More so now than ever as part of the recovery of the city with more UK based visitors likely than overseas over the coming years the City requires a number of unique offerings that cannot be realised elsewhere. If we are to continue to aspire to be one of the best small cities in Europe we need, for once, to be at the front of something in our offer and have something that other places do not. We have with this project something which offers that USP and something which can help to drive Perth as a viable destination not just for day visitors but for overnight and longer stays. Benefit 13 Through illumination The City of Perth can show itself to a worldwide audience through social media in acknowledgement of cultural events, symbolic holidays, awareness campaigns etc. At present about 70 key events each year are recognised such as VE Day, World Aids Day, Pride, Diwali, EID, Cancer awareness, Baby Loss Awareness etc. Each event allows Perth to upload images of illuminated sites and show case not only our support but increase awareness of Perth as a place and its offering ultimately with the aim of increasing connections and tourism Benefit 14 Low running costs with limited impact on revenue. The installation at St. Matthews for instance costs only £105 for the entire year to run or 29p per day. The installation on Perth Bridge saves the authority around £1.8k per year Benefit 15 The works carried out to date on the likes of Perth Bridge and St. Matthews as well as works to St. Pauls help as part of the overall regeneration of Perth. The lighting serves not only to showcase these structures in a vibrant yet tasteful way in the evening but enhance the feeling of the environment around them. Benefit 16 The Lighting programme being set up as a Framework has allowed to react to events which without would not be the case otherwise. The illumination of a section of North Inch to complete a walking route would not have been achievable through the Street Lighting budget however the lighting plan was able to pick this up as the works fell within its remits. Similarly requests delivered in Pitlochry and Aberfeldy would not have been carried out without the support of this programme. Page 176 of 222
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25 Risks of discontinuing programme This City of Light Action Plan was developed and approved in 2017 to aid with the deliverables within the Perth City Plan (2015-2035) By concluding the programme in advance this puts parts of the delivery of the plan at risk. Further the Lighting budget along with other Placemaking schemes was used towards the overall matched funding proposals for the Community Links Plus proposals and with the level of commitment still under review from Sustrans the element from the Lighting programme may still need to be required to deliver that scheme and indeed any future ones. While not exhaustive a number of risks have been identified should there be a view to potentially discontinuing the programme which shown below: Risk Risk organisationally and overall by terminating programme in advance of conclusion. Risk 1 The City of Light project has not been imagined to date, the illumination of a number of keys sites in town does not constitute sufficient exposure or interest in or away from the region in increasing the night-time economy, this can only be delivered when a large amount of the plan has been completed in making Perth a destination worthy in terms of visiting for the installations. Risk 2 While work to date has had a positive effect and enhanced the City Centre, without several key sites being delivered and crucially those of the overall Placemaking Programme, as well as the likes of the night time illuminated trail through the Vennels, City Centre lighting and/or the ‘Seasonal offer lighting’ we will not be able to tap into the underused expenditure from both residents and non-residents for the evening economy. Risk 3 The lighting budget forms part of the overall City Placemaking strategies such as the St. Pauls renovation, without the realisation of the funding from this budget the lighting for this scheme would not have been realised and further pressures to that budget would have been encountered. Similarly, The Light action plans plays a role in other key projects being realised such as Tay Street, The Vennels, The Golden Route and South Street. Risk 4 Risk to other programmes or departments such as property/streetlighting for funding the delivery of lighting as part of works such as works to Perth Museum, Perth Theatre, Lower City Mills and new Perth Museum Surrounds. The enhanced Lighting to Peth Bridge in 2019 was never under consideration from Property or Street Lighting due to their budget constraints. The Lighting at the time was in disrepair, well past lifespan and had to be switched off for safety reasons. Had the City of Light Plan never been realised this icon of Perth architecture would be sitting left in the dark causing issues of H&S to users and the environment. Page 177 of 222
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26 Risk 5 Risk to ongoing and future matched funding programmes such as Dunkeld Road corridor/CLP Bids. Risk 6 Fundamentally the Framework was committed by PKC to the value of £4.5m. As such this should be contractually honoured notwithstanding the residual risk of litigation. The Framework was not set up as a vehicle to renege on the contract in the future but to allow flexibility to PKC in the knowledge that it would be impossible to put the various different projects of the Light Action Plan into specific timelines due to the co-dependency’s of other departments and viability of assets due to other works as well as differing time required to acquire leaseholds/legal agreements with a large amount of different bodies. In addition, it was set up as a framework to allow increased spend in the future on the basis of other funding being achieved not to see it decreased. Risk 7 Reputational risk to PKC for reneging on an ongoing contract. Risk 8 The contractors have entered into the contract in good faith and have lost the ability to tender for other works due to commitment to honouring works via the Framework. Again, residual risk of litigation due to loss of earnings. Risk 9 Risk not only to the employees of the three contractors directly involved within the Framework but also to their businesses and partners as a whole as a result of loss of revenue/income from contract. Again, residual risk of litigation due to loss of income. Risk 10 PKC officer’s role was agreed and financed on approval of the Project. Risk 11 Failure to develop and progress deliverables both within the Perth City Plan (2015-2035) and City of Light Action Plan. Risk 12 Reduces the Councils ability to meet National and Local Single Outcome Agreement. Page 178 of 222
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27 Projects completed or in construction phase Perth Bridge – Completed July 2019 Works were completed 10 days ahead of schedule on 21st August 2019 despite some adverse conditions throughout the installation. The works involved the removal of the architectural lighting on the north facing elevation of the bridge, which had been in place for almost 30 years, was well beyond its intended lifecycle and in a state of repair that required it to be replaced. They have been replaced by more energy efficient LED lighting which greatly reduces the previous power consumption and running costs of the Bridge. The light fixtures are full RGBW control which allows the council to acknowledge when appropriate awareness campaigns and events in aiding with the animation of the city centre which has proved very popular and well received by residents and visitors. Page 179 of 222
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28 Norie Miller/Rodney Parks – Completed Nov 2019 The first location for lighting installations - Norie Miller and Rodney Gardens were both seen as an enhancement of the park and overall area but also to allow a location for long term on site testing for the suitability & capability of products that were/and are to due be used throughout the full City of Light Action Plan project. Page 180 of 222
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29 Meander Light Art Installation – Completed Nov 2019 Commissioned in 2019 after an open call in 2018 Meander is a projection installation which celebrates the River Tay by environmental artist Elizabeth Ogilvie. The hour+ long film uses imagery from the Tay and bringing the river back into the heart of the city. The three projectors used for the installation have been used for ‘two-week takeovers’ of the permanent installation to show visual works by Perthshire Primary schools as well as promoting events in the city and recognising key dates/events such as Thanks to Key Workers, Pride, VE Day & the St. Johnstone Cup wins. Owners signature on legal docs was finally attained in April 2020 for installation of sculptural element however the pandemic meant this could not be installed. Further the Owner has now applied for new entrances which will mean a slight change to deign will be required prior to install Page 181 of 222
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30 St Matthew’s Church – Completed June 2019 Seen as one of the key architectural building within Perth, St. Matthews Church was seen as integral to the development of the City’s Lighting Strategy – Agreements with church as to functioning, control and ownership of the equipment were drawn up in legal documents where the asset would be owned & maintained by PKC. Page 182 of 222
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31 Aberfeldy Square – Completed March 2020 Works within Aberfeldy Square were completed in February 2020 however as the lights were commissioned in March these were only checked in September due to travel restrictions and lighter summer months. The removal of the tree lighting (due to the smaller trees installed by Greenspace) mean that some new lighting for the square needs to be considered to increase lighting levels in some areas of the square – works should still fall within original cost estimates. Aberfeldy & Pitlochry War Memorials - Following years of requests for illumination of these war memorials specifically around Remembrance these two monuments were installed and activated late 2020 Page 183 of 222
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32 St Pauls Church – Completed June 2021 As well as ability to hold events St. Pauls Sq. consists of a main projected wall which has been utilised to promote awareness but also showcase art – This can be by basic photographic imagery or by animation. The redevelopment and lighting have reinvigorated this area. Page 184 of 222
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33 North inch Lighting – Completed Nov 2020 Given events of 2020 and the increased use of parks and open spaces, as well as requests from various groups and users over the past couple of years a section of lighting was installed that was ‘missing’ to finalise the connection from the North Inch to Tay Street and to help users to feel safer within the park throughout the darker nights of the year. The section of lighting installed is from the area of footpath within North Inch from the junction of Rose terrace running adjacent to Atholl Street through to the North Inch connection under Smeaton’s Bridge covering a length of approx. 380m in total. As well as functional street lighting the works also see various memorials and sculptures within the section illuminated. Page 185 of 222
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34 Perth Sherriff Courthouse – Completed Apr 2022 One of Perth’s landmark buildings has been illuminated for the first time in decades this year. Perth Sheriff Court will join other lighting projects such as Perth Bridge and St Matthew’s Church in being lit up at night to highlight the stunning architecture along Tay Street. It is situated on one of the major routes through Perth overlooking the River Tay to the East and is a significant piece of early 19th century civic architecture. It is illuminated as part of the City of Light Action plan in partnership with Scottish Courts. The Action Plan is developing and significantly enhancing feature and decorative lighting in Perth replacing the large, outdated lamps with modern LED fixtures offers Improved Environmental Performance with a 60% to 70% improvement in energy efficiency, longer lifespan of products and greater reliability. Page 186 of 222
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35 Cutlog Vennel – Nathan Coley – Completed Oct 2022 £105k Installation of light art text installation by renowned and Tuner Prize nominated artist Nathan Coley – ‘World Without – World Within’ is situated on two aspects of Perth Theatre and one on the tenement close to entrance of the High Street. Taking the form of one of Coley’s signature illuminated text sculptures, the artwork is installed in Cutlog Vennel - a city centre pedestrian laneway between High Street and Mill Street, Perth, Scotland. Referencing the title of a short publication by the pioneering urban planner Sir Patrick Geddes (who attended Perth Academy), the phrase echoes Geddes aim ‘to see life whole’ and to achieve a better understanding of human beings in the natural, built, and social environment. The artwork evokes questions of private and public life, internal and external thoughts, and notions of work and play Page 187 of 222
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36 Perth Concert Hall – Completed Dec 2022 Dating back over 18 years the existing lighting around the exterior of Perth Concert hall had started to fail as its lifespan has exceed. Also made from older SON lighting technology the lighting has been superseded by newer more efficient, cheaper to run and sustainable LED products – Installed late Nov 22 the new lighting has full colour control to enable to respond to lighting requests and tie in with events externally and internally. Page 188 of 222
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37 Perth Library – Completed Dec 2022 Works to enhance the area around the library, car parks etc with modern led fittings as well as on building lighting are being phased with the first phase installed and completed Dec 22 Page 189 of 222
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38 Winter Animals – Completed Nov 2022 Devised to enhance and increase the period of Winter Festival from November to end January the Perth Winter Animal Trail was introduced last year and proved highly popular through both engagement online and note of frequent photography of users especially around Perth Concert Hall and Theatre. The bespoke designs which play on one of Perthshire biggest assets in Wildlife create a new modern take on festive lighting. The plan would be to introduce more installations in future years to create a trail surrounding the city centre businesses to increase footfall to locations/provide a differing offer to the likes of Edinburgh and Glasgow. There has been interest in rental of pieces out with the Perth Winter Festival period from operators and use at other events owing to the ‘non- Christmas’ theme allows lots of possibilities of use. The two pieces commissioned for 23/24 are Osprey and Red Squirrel. Page 190 of 222
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39 Fergusson Gallery – Completed Feb 2023 All works have now been complete to both the on building and off building lighting and commissioning of install due to be undertaken later this month. Lighting/projections will see this building animated and able to reflect its new use as the photographic collection of Culture PKC Page 191 of 222
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40 South Inch – Due to be completed Late May 2023 Designed to make the park more accessible, increase safety following concerns raised, allow the likes of running groups new routes at dark etc, and hopefully encourage more footfall to/from town from the likes of Craigie by foot/bike the scheme has installed new sections of lighting along the diagonal path network. It has taken a considerable amount of time to get approval from Flooding/Reservoir Engineers about bringing new power to site and ducting routes for the lighting in respect of the embankments etc with the location used as a flooding plane, however we gained that approval last year through proposals which will not interfere with any flooding measures. We have also concluded discussions with stakeholders such as Greenspace and Street Lighting and started installation in February 2023 Due to the considerable length of ducting (around 2km) and requirement of new power provision from SSEN as the existing power does not have sufficient end supply works were expected to take around 8 weeks. While the columns and majority of the cabling have been installed works are expected to be complete end May 2023 owing to delay in getting SSEN connection for new supply to site. Page 192 of 222
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41 Skinnergate – Completed May 2023 The original string lighting which had been installed for over 7 years (prior to the start of the lighting plan) and had fallen into disrepair and subsequently was removed Jan 23. Owners and Businesses had been written to around a new scheme to look at any objections/level of support. Approval following redesign of some fixing location were gained and works started early May and were completed within a two-week period. Some additional work will be carried out to enhance the work but falls within original budget. Page 193 of 222
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42 Guard Vennel – Completed April 2023 Another commission that has been taken forward from the Lighting Strategy is with artist Elisa Atereso. Other works/artists had works considered for this wall however following consultation with Eight Investment (Building owners) it was agreed to take forward Elisa's works. Elisa is one of the most highly regarded Light Artists within the UK and has works on display in London, Manchester and York as well as exhibiting internationally. The work used a casting process (where light is directed through cutting in metals and forms light shadows) While the work is now installed, and some press has been issued the official launch will be held back until Autumn to coincide with darker nights returning. Page 194 of 222
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43 Works Issued with expected completion in 2023/24 Perth Art Gallery Light Commission & Building - Nov 2023/Feb 2024 Chila Kumari Singh Burman MBE is a British artist, celebrated for her feminist practice which examines representation, gender and cultural identity. She works across a wide range of mediums including lighting, printmaking, drawing, painting, installation and film. A significant figure in the Black British Art movement of the 1980s, Burman remains one of the first British Asian female artists to have a monograph written about her work; Lynda Nead's Chila Kumari Burman: Beyond Two Cultures (1995). In 2018, she received an honorary doctorate from University of the Arts London for her impact and recognised legacy as an international artist. In 2020 she was invited into the Art Workers' Guild as a Brother and in 2022, Burman was appointed a Member of the Order of the British Empire (MBE) in the Queen's Birthday Honours for services to visual art. Commissioned to undertake an installation similar to that once shown on the TATE Britain Chila’s work would be a permanent installation and as well as refocusing Perth Museum and Art Gallery to Perth Art gallery alone the works form an another very important installation as part of the City of Light Plan to create permanent outdoor Light Art trail in Perth making it a UK First. Installation is expected late 2023/early 2024 Page 195 of 222
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44 Queens Bridge - Oct 2023 Queens Bridge has been a challenging Lighting project. With Structures not looking to add extra weight to the bridge and their being too small and elevation (bridge arch) to hit with remote lighting a number of different modes of illumination were considered A basic projection map test in Oct 2022 took a single laser projector which was able to cover around half the bridge, some imagery is shown below. Basic projection mapping delivered results above expectation, installation of works can be carried out off bridge and at a far reduced cost of on bridge lighting as well as having huge adaptability in what is being projected (tie into events/promotion etc) Page 196 of 222
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45 High Street Columns Commission – Nov 2023 Having spent significant time within the archive departments of AK Bell Library and Perth Museum and Art Gallery researching weaving and dyeing companies in Perth the artist Paula Thomson was inspired by the processes involved in both the creation of textiles and the subsequent surface decoration. Inspired by the story of Pullars and looking to combine the tradition of dyeing and weaving with the potentials that modern materials and techniques can have to present them in a unique and contemporary way. Set on a bespoke column in toughened glass or UPVc Panels the illuminated fins would be a modern take on a tapestry telling the story techniques of Pullars. Branching what once dominated Mill Street this installation proposed for the High Street highlights it place in Perth’s history and bridges other stories within the new Perth Museum to open in 2024. Paula's Design proposal was the open commissions chosen submission and design proposals are currently with Engineers who are evaluating requirements around loadings/footings as well as the bespoke column manufacture, installation is expected late 2023 Page 197 of 222
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46 Perth Theatre – May 2023/Jan 2024 Page 198 of 222
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47 Lower City Mills 2024 (dependent on other building works) To coincide with large scale renovation works to Lower City Mills we are looking to enhance the lighting to the main Lower City Mills building but also of the surrounding area (West Mill Street/Mercure Hotel and car parks surrounding) this will be with a variety of grazing lighting fixtures and heritage style lanterns & projection mapping to Mill Street Elevation. LBC & Planning consents are required for approval prior to commencement. Initial Remote Light Testing ‘washed out’ the building – compare difference of stone above and right (remote lighting in red – White on building to the right) as a result on building graze lighting (similar to that at St. Pauls is being sought via LBC) Heritage fixture 2 nd right Basic Projection testing (not mapped) above Below main elevation lighting proposal drawing Page 199 of 222
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48 Winter Animals Year 2 Devised to enhance and increase the period of Winter Festival from November to end January the Perth Winter Animal Trail was introduced last year and proved highly popular through both engagement online and note of frequent photography of users especially around Perth Concert Hall and Theatre. The bespoke designs which play on one of Perthshire biggest assets in Wildlife create a new modern take on festive lighting. The two pieces commissioned for 23/24 are Osprey and Red Squirrel. Page 200 of 222
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49 Design Briefs Still to be issued: St. Johns Kirk Owing to works currently ongoing with Perth Museum design development of lighting on/around the Kirk was paused to take account of the ongoing disruption. However as the project is now coming to close and the lighting (as with the Concert Hall) is now out of date and failing and as a result robust modern LED lighting is now being in place around Perth Museum we would look to progress with these works in 2024. Historic lighting pictures do not reflect current lighting levels – Most fixtures are now outdated, using more energy than required and not sustainable Page 201 of 222
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50 City Vennels (Vennels excluding Cutlog, Guard & Burt’s Close) – Images For illustration only Page 202 of 222
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51 Page 203 of 222
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52 City Centre Streets (Excluding work and other briefs issued to date) Images for illustration only Page 204 of 222
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53 Page 205 of 222
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54 Gateways – Images for illustration only Page 206 of 222
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56 Appendix A: Riverside Lights 2018 Evaluation Perth Riverside Night Lights 2018 Evaluation Page 208 of 222
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57 Executive summary Perth Riverside Light Nights 2018 was the 2nd year of operation of the event which concluded Perth’s Winter Festival Programme. 53,518 visitors were recorded as attending the event which ran from Saturday 27th January to Wednesday 14th February. The Social Media reach for Perth Light Nights at 14th February 2018 was 2,125,276 across Facebook, Twitter, Instagram with Light Nights content with 285,876 engagements (13.45%). Surveys of visitors were conducted with the following key highlights: 63% of visitors were adults with 37% children. 72% of visitors were shown to come from Perthshire. 71% of users would not have come into Perth had Light Nights not been on. 95% of visitors rated Perth Light nights as Very Good or Excellent. 48% of visitors said they had dinner in town. Page 209 of 222
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58 Introduction & Background Perth Riverside Night Lights completed its 2nd year run as an annual event bringing to an end the Perth and Kinross Winter Festival. The event was organised and financed by Perth and Kinross Council’s Economic and Planning Development Units. The event will took place at Norie Miller Park, within the City of Perth located between Perth Bridge and Queens Bridge, opposite Tay Street in Perth City Centre. Location Plan as shown in Appendix A. As with the 2017 event the thematic illumination of Norie Miller Park formed dazzling light displays and transformed the banks of the River Tay into a magical wonderland. The overall event was enhanced with various theme nights throughout providing visitors with a unforgettable experience. The themes were supported by live events and performances using the likes of actors, dancers, musicians and music, acrobats, and street entertainers. In its inaugural year in 2017 the event was a major success with visitor numbers of 50,947 throughout its duration, far exceeding the original estimations. The 2018 event brought an increase in visitor numbers of 53,518 The event ran from Saturday 27th January through to Wednesday 14th February, 5-10pm daily. An analysis of footfall and dates for the respective themes are as follows: Dates Theme Nights Footfall 27th - 28th Jan Burns 2 nights 5852 30th - 31st Jan Superhero 2 nights 8352 2nd - 3rd Feb Bright Light 2 nights 5199 4th - 5th Feb Wonderland 2 nights 5630 6th - 7th Feb Yellow Brick Road 2 nights 5010 10th - 11th Feb Chinese New Year 2 nights 13411 13th & 14th Feb Valentines 2 nights 4631 Various Music & Light 5 nights 5433 Total 53518 On non-event nights the production consisted of lighting supplemented by music played through the audio system on site. 21CC were appointed as the winning bidder to supply the lighting event production for the event. 21CC were also the lighting event producers for the 2017 event. Page 210 of 222
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59 Promotion & Reach The total reach at 14th February 2018 was 2,125,276 across Facebook, Twitter, Instagram with Light Nights content with 285,876 engagements (13.45%). Event attendance via Facebook was up 81% from 4,223 in 2017 to 7,658 in 2018. From the advertising it is shown that 38% of people were from Perth, 27.8% from Dundee, 11.8% Crieff/Pitlochry/Dunkeld and 8.1% from Aberdeen. The Riverside Light Nights page on the website had over 33,000 page views. Top traffic sources were Google (46.6%), Facebook (30.8%), Direct (8.5% including internal PKC server (6.2%). Top locations for web traffic were Perth (34.4%), London (16.1% - likely to be more than just London), Dundee (13.2%), Edinburgh (7.1%), Glasgow (5.6%) A media event held on Friday 26th January between 6-8pm to showcase the site prior to start, local press and other media sources including key bloggers and social media users. Surveys conducted of visitors found that the following channels shown in the chart below led to awareness of the event: Page 211 of 222
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60 Evaluation of Survey Data Two surveys were conducted with visitors to Riverside Light Night. The first survey was conducted with visitors specifically in relation to the ‘Burns Night Weekend’. The second survey as issued in respect of the event as a whole. Where questions were duplicated the following shows a combination of the results. Other questions that were not repeated but which were useful in context of this report are shown to provide as further information. The total number of responses to the surveys was 704. A selection of some of the comments received from visitors is shown in Appendix B. Audience Profile: Visitor Geographical Locations The above graph shows the percentage of locations of visitors to the event, 26% of users as shown to have come from outwith Perth & Kinross postcodes. Page 212 of 222
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61 Breakdown of Audience Attending Respondents were asked what was the breakdown of their group was in relation to Adult & Child. 63% of visitors were shown as adults and 37% as children. This equates to 33,705 adults with 19,795 children. Visitor Audience Profile The majority of attendees, 56%, are shown as attending as a family group with 26% attending with a partner and 14% with friends. Page 213 of 222
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62 Visitor Audience Profile Visitors were asked if they had stayed overnight when attending Light Nights, 15% had indicated that they had stayed overnight although this is reduced to 6.9% of users who paid stay in Perth. Visitor Experience Page 214 of 222
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63 Visitors were asked if they would have come into Perth of that evening had Perth Light Nights NOT been on. 71% or respondents said they would not have come into Perth. Visitor Experience 95% of visitors rated Perth Light nights as Very Good or Excellent. Page 215 of 222
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64 Visitor Experience 48% of respondents listed going for dinner which was an increase from 33% the previous year. 4% for lunch is identical to 2017. 18% listed shopping which was an increase from 8% the previous year. 50% of the respondents within ‘other’ noted that they did nothing else while being in for Perth Light Nights. Page 216 of 222
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65 Riverside Light Nights 2018 survey results to Economic Impact: Of those surveyed 63% are shown as adults in attendance, 37% as children. 53,500 visitors total (subtracting children @37%) = 33,705 adults attending Overnight Accommodation Visitor Spend 49/704 visitors stayed overnight = 6.9% of those questioned. Total spend = £4110/49 = £83.88 per person. 6.9% of 33,705 = 2326 total overnight visitors for event. 2326 x £83.88 = £195,104.88 total spend on accommodation. It is unknown exactly how many visitors stayed over specifically for light nights. A figure of 29% has been shown overall for all visitors who would have come to Perth irrespective of Light Nights being on however for the purpose of this report it is recommended to increase this percentage to 60%* and any future assessments to be re-worded to gain a better evaluation of the results. (*in line with deadweight and displacement figures) Food & Drink Spend £0.00 87 visitors = £0.00 £1.00-£9.99 265 visitors = £516.75 (£1.95 average per visitor) £10.00 - £24.99 204 visitors = £2990.64 (£14.66 average per visitor) £25.00 - £49.99 118 visitors = £3034.96 (£25.72 average per visitor) £50.00 - £99.99 20 visitors = £1500 (£75.00 average per visitor) £100+ 10 visitors = £1000 (£100 average per visitor) Total £9042.35/ 704 (total questioned) = £12.84 average per visitor 33,705 adults x £12.84 = £432,772.20 total spend on food & drink. Shopping Spend £0.00 388 visitors = £0.00 £1.00-£9.99 32 visitors = £158.08 (£4.94 average per visitor) £10.00 - £24.99 126 visitors = £2085.30 (£16.55 average per visitor) £25.00 - £49.99 118 visitors = £4301.10 (£36.45 average per visitor) £50.00 - £99.99 35 visitors = £1750 (£50.00 average per visitor) £100+ 5 visitors = £500 (£100 average per visitor) Total £8794.48 / 704 (total questioned) = £12.49 average per visitor 33,705 adults x £12.49 = £420,975.45 total spend on shopping Travel Spend £0.00 260 visitors = £0.00 £1.00-£9.99 267 visitors = £1054.65 (£3.95 average per visitor) £10.00 - £24.99 127 visitors = £1739.90 (£13.70 average per visitor) Page 217 of 222
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66 £25.00 - £49.99 40 visitors = £1090 (£27.25 average per visitor) £50.00 - £99.99 9 visitors = £600 (£50.00 average per visitor) £100+ 1 visitors = £100 (£100 average per visitor) Total £4584.55 / 704 (total questioned) = £6.51 average per visitor 33,705 adults x £6.51 = £219,419.55 total spend on travel. Entertainment Spend £0.00 477 visitors = £0.00 £1.00-£9.99 78 visitors = £397.02 (£5.09 average per visitor) £10.00 - £24.99 107 visitors = £1500.14 (£14.02 average per visitor) £25.00 - £49.99 40 visitors = £1123.60 (£28.09 average per visitor) £50.00 - £99.99 1 visitor = £50 (£50.00 average per visitor) £100+ 1 visitor = £100 (£100 average per visitor) Total £3170.76 / 704 (total questioned) = £4.50 average per visitor 33,705 adults x £4.50 = £151,672.50 total spend on entertainment. Other Spend (Only asked in one Questionnaire so results adjusted to reflect) £0.00 164 visitors = £0.00 £1.00-£9.99 43 visitors = £171.14 (£3.98 average per visitor) £10.00 - £24.99 17 visitors = £250.41 (£14.73 average per visitor) £25.00 - £49.99 8 visitors = £235.04 (£29.38 average per visitor) £50.00 - £99.99 3 visitors = £150.00 (£50.00 average per visitor) £100+ 3 visitors = £300.00 (£100 average per visitor) Total £1106.59 / 238 (total questioned) = £4.65 average per visitor 33,705 adults x £4.65 = £156,728.25 total spend on other. Gross Economic impact based on spending profile £1,576,672.83 The gross visitor expenditure needs to be transformed into net spending i.e., only the spending which is additional – brought about by the event itself, on top of the expenditure which would have taken place in Perth anyway. This takes into account reductions in gross expenditure (deadweight and displacement along with increases through multiplier effects. Page 218 of 222
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67 Deadweight¹ is defined as the proportion of total outcomes that would have been secured anyway without the intervention in question. Riverside Nights was a free event, suggesting that at least some of the spending would have happened anyway in the course of people being in Perth on a ‘normal’ day. However, Riverside Light Nights would have likely encouraged them to spend longer going around Perth, and encouraged more expenditure on, for example, food and drink outside normal food shopping than would have been the case, in particular in relation to the evening economy. Balancing these divergent tendencies suggests a figure of around 40% - near the average – is appropriate. Displacement² is the proportion of total outcomes that are reduced elsewhere in the target area typically among other businesses – i.e., ‘cannibalising’ of spending elsewhere in Perth, rather than being additional in the true sense. The multiplier³ represents the extent to which £1 of spending generates further economic benefits as it circulates in the local economy – i.e., the ‘knock-on’ effects whereby, for example, 20% of an employee’s wages would be spent locally, of which a further 20% of those employees’ wages would be spent locally and so on... This figure is taken to be 1.25 for a sub-regional multiplier. Spend Area % visitors Gross Spend % reduction for non event stays* Deadweight Loss Displacement Loss Spend Reduction Total Net Spend Accommodation 100% £195,104.88 60% £117,062.93 £78,041.95 Food & Drink £432,772.20 Perthshire Residents 72% £311,595.98 39.5% 21.5% £190,073.55 £121,522.43 Visitors outwith Perthshire 28% £87,246.88 £87,246.88 Shopping £420,975.45 Perthshire Residents 72% £303,102.32 39.5% 21.5% £184,892.42 £118,209.91 Visitors outwith Perthshire 28% £84,868.65 £84,868.65 Travel £219,419.55 Perthshire Residents 72% £157,982.08 39.5% 21.5% £96,369.07 £61,613.01 Visitors outwith Perthshire 28% £44,234.98 £44,234.98 Entertainment £151,672.50 Perthshire Residents 72% £109,204.20 39.5% 21.5% £66,614.56 £42,589.64 Visitors outwith Perthshire 28% £30,577.18 £30,577.18 Other £156,728.25 Perthshire Residents 72% £112,844.34 39.5% 21.5% £68,835.05 £44,009.29 Visitors outwith Perthshire 28% £31,596.42 £31,596.42 Total (s) £1,576,672.83 £723,847.57 £744,510.33 £356,566.05 £387,944.28 £744,510.33 £930,637.91 * A 60% reduction to accommodation spend has been allocated as exact users staying specifically for Light Nights is unknown from data Perth Riverside Lights 2018 1.25 multiplier for further economic benefit as money circulates local economy Economic impact of net spend from visitors outwith PKC boundary Economic impact of net spend from visitors in PKC boundary Total Economic impact of net spend Page 219 of 222
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68 In summary the economic impact of Riverside Nights is estimated at £744,510.33 when transformed into net spending. £356,566.05 is estimated to have been generated by visitors from non-Perth & Kinross Council post codes. £387,944.28 is estimated to have been generated from visitors from within Perth & Kinross post codes. Including the 1.25 sub-regional multiplier it is estimated the total net worth of the event to be £930,637.91. Reference ¹ BIS OCCASIONAL PAPER NO. 1 Research to improve the assessment of additionality (page 14. Table 3.1: Deadweight at the sub regional level) ² BIS OCCASIONAL PAPER NO. 1 Research to improve the assessment of additionality (page 18. Table 4.1: Displacement at the sub regional level) ³ BIS OCCASIONAL PAPER NO. 1 Research to improve the assessment of additionality (page 27. Table 7.1: Displacement at the sub regional level) The value of this study is that it presents evidence from many studies and quotes average or typical values for each estimate and does so at a sub-regional scale. Page 220 of 222
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69 Visitor Comments: We Travelled to Perth 3 times to visit the light nights with Friends and family. Love visiting and hope it continues next year. Absolutely amazing. My little one loved it so much, as did we! We attended the superhero theme, and went round it twice we found it so good. Tonight we are attending the yellow brick road, as it's my little boy’s favourite film & I’m sure we will enjoy this just as much! Thank you so much for providing this free entertainment, great for the community! This is a great attraction and brings many visitors into the city centre. The different themes ensure we will return again. This was a great experience and so well organised. Great to spend time with family without the usual expense. More of these events would be welcomed in more cities. Well done to everyone involved in bringing these nights together. I thought it was a fantastic event that is great for kids and adults. It was also nice to go somewhere that allows dogs as well as we get put off to going to things as we don’t want to leave our dog for to long on her own Brilliant event highly recommend and much better than Enchanted Forest as theme changes and easier to Access with being in Perth definitely a family fun outing that caters for all ages. The event was great and as a local resident it is great to see families coming out with Perth to this and spending money in our area. I recommended this to friends in fife and a good number of them came through and loved it! The themes are great and a few additional ones to last year which has been fab! Brilliant. Suitable for every age. Every member of staff we came across was happy and helpful. We've been to two themes so far and both amazing. One was raining v heavily and we honestly didn't notice as having so much fun. Really well thought of and brilliant for Perth. I went with my husband to the Alice in Wonderland theme & thoroughly enjoyed. I'm so glad Perth is finally doing something (anything!) to get people back into the town - I hope visitors to the city will come back when the light show finishes for other attractions Had a fantastic night and it's amazing that it is free! Have actually been through twice already and am so impressed with the differences and the detail each time! Have recommended to so many people! Only wish Dundee did something similar! Thank you to everyone who played a part in organising this wonderful event. The lights were amazing and the staff/performers were great at interacting with the public. Page 221 of 222
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70 We thought it was even better this year than last year. The sheer variety was amazing! Loved in particular the characters, the face painting, the live band and poets, the food and drink stalls, the photo booth Was really good event again. So much more than last year. We tried to do it all but missed a couple. So there was something for everyone. Loved the photo booth again this year. The live band one valentines was excellent. It's a good event to get people out of their houses for fresh air and exercise on the cold winters night. Something similar but less work would be great for the end of the year as it gets people out and it's for your health and wellbeing. Not a sympathy vote but recently having going through a separation, it was so nice to bring my girls out to this in the evenings as a distraction and to also see their faces light up. My eldest is so keen to see every theme so we are eager to do so and will definitely make that effort. The joy when they see the characters and they were completely mesmerised during the wonderland tea party performance. It's so magical and they even just loved watching the lights "touching the clouds" so every little detail, no matter how small was actually appealing to them. The yellow brick road encouraged us to go home and watch the movie together all snuggled up. My youngest had never seen it before and now I have to put it on all the time so it's nice to introduce classics to them. Thank you for providing these experiences which allow us to go out at night as our little family and bring home lovely memories. Amazing displays and at a time when usually nothing happens. Definitely cheers up our cold winter months Enjoyed visit. Live in Perth city centre so only a walk across the bridge but worthwhile as viewed it over the river each night. Hope to go along for the Chinese New Year event. Absolutely fantastic event put on, safely routed, friendly staff and good selection of food/drink stalls Thought it very well done and happily come back next year even happy pay a donation next time Absolutely fantastic, next time we would plan an evening to include shopping and a meal. Perth has pulled out all the stops for this event over winter.. it gets families friends etc. together. It's a great event and should continue to carry on. This event was absolutely amazing. The superheroes night will stay in my 7 year olds memories forever. Mine also , the whole event was such good fun and I hope we can have it again next year . Thank you A wonderful event. I love that the theme changes every few nights so there is something for everyone to enjoy. A truly fantastic evening. Was so lovely to see & follow the parade this evening before we reached the riverside walk. Kids were totally mesmerised by it all. Thank you to everyone who had put this on. Page 222 of 222