2023 No. 446
The Hartlepool Development Corporation (Functions) Order 2023
Made
Laid before Parliament
Coming into force in accordance with article 1(2) and (3)
The Secretary of State for Levelling Up, Housing and Communities makes this Order in exercise of the powers conferred by sections 48A(5) and (6) and 143(2) of the Local Government Finance Act 19881 and sections 198(2)(c) and 235(2) of the Localism Act 20112 (“the 2011 Act”) as modified by article 4 of, and the Schedule to, the Tees Valley Combined Authority (Functions) Order 20173 (“the 2017 Order”).
The Mayor of Tees Valley has notified the Secretary of State of the functions in relation to town and country planning and in relation to discretionary relief from non-domestic rates which he has decided the Hartlepool Development Corporation is to have, pursuant to sections 202(8)(b) and 214(5)(b) of the 2011 Act4 as modified by article 4 of, and the Schedule to, the 2017 Order.
Part 1General
Citation and commencement1
1
This Order may be cited as the Hartlepool Development Corporation (Functions) Order 2023.
2
Parts 1, 3 and 4 of this Order come into force on 12th May 2023.
3
Part 2 of this Order comes into force on 1st June 2023.
Interpretation2
In this Order—
“the 1980 Act” means the Local Government, Planning and Land Act 19805;
“the 1988 Act” means the Local Government Finance Act 1988;
“the 1990 Act” means the Town and Country Planning Act 19906;
“certification date” means the date on which the certified non-domestic rating income for the relevant year is certified under regulation 9 of the Rates Retention Regulations7;
“certified non-domestic rating income” has the same meaning as in regulation 9(4) of the Rates Retention Regulations;
“the Corporation” means the body corporate known as the Hartlepool Development Corporation established by article 3 of the Hartlepool Development Corporation (Establishment) Order 20238;
“deficit” has the meaning given by article 14(2)(b);
“the development area” means the area of land described as a Mayoral development area in article 2 of the Hartlepool Development Corporation (Establishment) Order 2023;
“estimated compensation amount” has the meaning given by article 11(1);
“final compensation amount” has the meaning given by article 11(2);
“the Hazardous Substances Act” means the Planning (Hazardous Substances) Act 19909;
“the Listed Buildings Act” means the Planning (Listed Buildings and Conservation Areas) Act 199010;
“non-domestic rating income” has the same meaning as in regulation 3(3) of the Rates Retention Regulations;
“planning document” means any notice, certificate, publicity, consultation or other document relating to the exercise of functions under the 1990 Act, the Listed Buildings Act or any order or regulation having effect under those Acts;
“preceding year” means the financial year11 immediately preceding the relevant year;
“previous authority” means—
- a
in relation to Part 2, a local planning authority which, by virtue of section 7A(2) of the 1990 Act12 and article 3, ceases to be the local planning authority for a part of the development area; and
- b
in relation to Parts 3 and 4, a billing authority which, by virtue of section 214(8) of the 2011 Act and article 8, ceases to have the functions mentioned in section 214(2) of the 2011 Act;
- a
“Rates Retention Regulations” means the Non-Domestic Rating (Rates Retention) Regulations 201313;
“relevant year” means the financial year for which a calculation of an estimated compensation amount or final compensation amount is made;
“section 151 officer” means the person who is for the time being appointed by the previous authority to be responsible for the administration of its financial affairs14;
“surplus” has the meaning given by article 14(2)(a);
“the Tree Preservation Regulations” means the Town and Country Planning (Tree Preservation) (England) Regulations 201215.
Part 2Planning functions
Planning functions of the Corporation3
Subject to article 7, the Corporation is the local planning authority for the development area for the purposes of Part 3 of the 1990 Act.
Additional functions conferred on the Corporation4
In relation to the development area the Corporation has the functions conferred by the provisions of the 1990 Act and the Listed Buildings Act specified in Part 1 of Schedule 29 to the 1980 Act16.
Modification of references to urban development corporations5
1
For the purposes of exercising functions transferred by this Part, any reference in an enactment to an urban development corporation is to be construed, so far as is required for giving effect to the enactment, as including a reference to the Corporation.
2
In paragraph (1) ‘urban development corporation’ means an urban development corporation established under section 135 of the 1980 Act17.
Modification of the 1990 Act and the Listed Buildings Act6
The provisions of the 1990 Act and the Listed Buildings Act specified in Part 2 of Schedule 29 to the 1980 Act18 have effect in relation to the Corporation and to the development area with the modifications specified in that Part.
Transitional provision in relation to planning functions7
Schedule 1 makes transitional provision in relation to functions transferred to the Corporation by virtue of this Part which were exercised by a previous authority prior to 1st June 2023.
Part 3Discretionary relief from non-domestic rates
Powers in relation to discretionary relief from non-domestic rates8
1
Subject to article 10,—
a
in relation to qualifying hereditaments in the Mayoral development area, the Corporation has the functions conferred by section 47(3) and (6) of the 1988 Act19 to the effect that section 47 of the 1988 Act applies as regards a hereditament, and
b
in relation to a hereditament as regards which section 47 of the 1988 Act applies as a result of a decision made by the Corporation, the Corporation has the function of making the determinations mentioned in section 47(1)(a) of the 1988 Act.
2
In paragraph (1) ‘qualifying hereditament’ has the same meaning as in section 214(9) of the 2011 Act.
Modification of references to billing authority9
1
For the purposes of exercising functions transferred by this Part, any reference in an enactment to a billing authority is to be construed, so far as is required for giving it effect, as including a reference to the Corporation.
2
Paragraph (1) does not apply to the reference in section 47(5A) of the 1988 Act to a billing authority.
Transitional provision in relation to non-domestic rates functions10
Schedule 2 makes transitional provision in relation to functions transferred to the Corporation by virtue of this Part which were exercised by a previous authority prior to 12th May 2023.
Part 4Payments in respect of discretionary relief from non-domestic rates
Compensation amounts11
1
The estimated compensation amount for a previous authority for a relevant year is the amount calculated in accordance with the formula—
2
The final compensation amount for a previous authority for a relevant year is the amount calculated in accordance with the formula—
3
For the purposes of this article—
“A” is the percentage that is the previous authority’s local share for the relevant year as determined in accordance with paragraph 4 of Schedule 7B to the 1988 Act20;
“B” is the previous authority’s non-domestic rating income for the relevant year;
“C” is the amount that, in the opinion of the section 151 officer, would have been the previous authority’s non-domestic rating income for the relevant year if, in respect of any day in the relevant year or any day in a preceding year, any determination by the Corporation under section 47 of the 1988 Act had not been made;
“D” is the amount which the previous authority estimates will be paid by the Secretary of State to the previous authority, or to a major precepting authority in relation to that authority, to compensate for the amount of relief granted to ratepayers by the Corporation under section 47 of the 1988 Act for the relevant year;
“E” is the previous authority’s certified non-domestic rating income for the relevant year;
“F” is the amount that, in the opinion of the section 151 officer, would have been the previous authority’s certified non-domestic rating income for the relevant year if, in respect of any day in the relevant year or any day in a preceding year, any determination by the Corporation under section 47 of the 1988 Act had not been made;
“G” is the amount paid, or to be paid, by the Secretary of State to the previous authority, or to a major precepting authority in relation to that authority, to compensate for the amount of relief granted to ratepayers by the Corporation under section 47 of the 1988 Act for the relevant year.
Calculation of estimated compensation amount12
For each financial year commencing on or after 1st April 2024 and for each previous authority the Corporation must—
a
calculate the amount that is its estimated compensation amount;
b
on or before 31st January in the preceding year, notify the Secretary of State and the previous authority of the amount that has been calculated.
In-year payments13
1
For each financial year commencing on or after 1st April 2024, and for each previous authority, the Corporation must make a payment to the relevant authority of an amount equal to the estimated compensation amount for the relevant year.
2
The payment under paragraph (1) must be made in 12 instalments during the relevant year such that—
a
the first instalment is payable on 30th April, and
b
the subsequent instalments are payable on the 19th day of each of the following 11 months starting in May.
3
Where an instalment falls to be paid on a Friday or a day that is not a working day, it is instead payable on the first working day that is not a Friday following that day.
4
The first four instalments are each to be of 9% of the amount payable for the relevant year and each other instalments is to be 8% of the amount payable for the relevant year.
5
In this paragraph “working day” means any day other than a Saturday, a Sunday, Christmas Day, Good Friday or a day which is a bank holiday in England under the Banking and Financial Dealings Act 197121.
End of year calculations14
1
Before the end of the period of 14 days beginning with the certification date, for each previous authority the Corporation must—
a
calculate the final compensation amount;
b
for each financial year commencing on or after 1st April 2024, calculate whether there is a surplus or deficit in accordance with paragraph (2) and, if so, the amount of the surplus or deficit;
c
notify the Secretary of State and the previous authority of the amounts that have been calculated.
2
Where the amount paid to a previous authority under article 13(1) is—
a
more than the final compensation amount for that authority, there is a surplus, the amount of which is the difference;
b
less than the final compensation amount for that authority, there is a deficit, the amount of which is the difference;
c
the same as the final compensation amount for that authority, there is no surplus or deficit.
End of year reconciliation15
1
For each financial year commencing on or after 1st April 2024 and for each previous authority—
a
where there is a surplus, the previous authority must make a payment to the Corporation of an amount equal to the amount of the surplus for that authority;
b
where there is a deficit, the Corporation must make a payment to the previous authority of an amount equal to the amount of the deficit for that authority.
2
For the financial year commencing on 1st April 2023, the Corporation must make a payment to the relevant authority for the final compensation amount for that year.
3
Any payments under this article must be made before the end of the period of 14 days beginning with the certification date.
Interest on amounts payable16
1
This article applies if all or part of a payment due under articles 13 or 15 is unpaid by the time when it is required to be paid.
2
Interest is payable on the amount outstanding for every day of the period beginning with the day on which the amount was due to be paid and ending on the day before the day on which it is paid.
3
The unpaid amount for the time being carries interest at the rate which is 2 per cent above the highest base rate quoted by any of the reference banks at anytime in the period for which that interest is payable.
4
The interest is to be paid at the same time as the amount outstanding is paid.
5
For the purposes of paragraph (3), the reference banks are the seven largest persons for the time being who—
a
have permission under Part 4A of the Financial Services and Markets Act 200022 to accept deposits,
b
are incorporated in the United Kingdom and carrying on there a regulated activity of accepting deposits, and
c
quote a base rate in sterling.
6
For the purposes of paragraph (5), the size of a person is to be determined by reference to the total consolidated gross assets of that person denominated in sterling, as shown in the audited end-year accounts last published before the period for which interest is payable begins.
7
In this article, the “consolidated gross assets” of a person is a reference to the gross assets of that person together with any subsidiary (within the meaning of section 1159 of the Companies Act 200623).
8
Paragraph (5) must be read with—
a
section 22 of the Financial Services and Markets Act 2000,
b
any relevant order under that section, and
c
Schedule 2 to that Act.
Variation agreements17
1
In relation to any amounts payable under this Part, the Corporation and a previous authority may agree that different amounts are payable or that payments may be made at different times.
2
Where an agreement is made under paragraph (1), the Corporation must notify the Secretary of State of what has been agreed before the end of the period of 14 days beginning with the date the agreement is made.
Recovery18
Where an amount has become payable by a previous authority or the Corporation under articles 13, 15 or 16 and it has not been paid, it is recoverable in a court of competent jurisdiction.
Signed by authority of the Secretary of State for Levelling Up, Housing and Communities
Schedules
Schedule 1Transitional provision in relation to planning functions exercised by previous authorities prior to 1st June 2023
Transitional provision in connection with planning functions1
1
Subject to paragraphs 2 to 9, this paragraph applies in respect of any functions which are transferred to the Corporation by virtue of Part 2 of this Order and in respect of which a previous authority ceases to be the local planning authority responsible for exercising those functions.
2
Anything which was in the process of being done by, to or in relation to the previous authority in connection with any of the functions mentioned in sub-paragraph (1) before 1st June 2023 may be continued after that date by, to or in relation to the Corporation and, if continued, must be treated as having been done by, to or in relation to the Corporation.
3
Nothing in sub-paragraph (2) requires the Corporation to continue with any step mentioned in that sub-paragraph.
Transitional provision: planning applications2
1
This paragraph applies as respects any application for planning permission or permission in principle, or for a consent, approval or determination under the 1990 Act, the Listed Buildings Act or the Hazardous Substances Act24, or under any order or regulation made or having effect under those Acts which—
a
relates in whole or in part to any land in the development area,
b
was made before 1st June 2023 to a previous authority, and
c
has not been determined by 1st June 2023.
2
Subject to sub-paragraph (3), the previous authority must transmit any application to which this paragraph applies to the Corporation for determination.
3
Where an application to which this paragraph applies is the subject of a direction made (whether before or after 1st June 2023) by the Secretary of State under section 77 of the 1990 Act25 or section 12 of the Listed Buildings Act26 requiring that the application be referred to the Secretary of State, the previous authority continues to be the local planning authority in respect of the application—
a
for the purposes of section 77 of the 1990 Act or section 12 of the Listed Buildings Act (as the case may be), and
b
for the purposes of any Planning Inquiry Commission constituted by the Secretary of State under section 101 of the 1990 Act to inquire into the application.
4
Where sub-paragraph (3) applies, the previous authority must notify the Corporation of the direction and transmit to the Secretary of State any representations received from the Corporation.
5
Where the previous authority transmits an application to which this paragraph applies to the Corporation for determination—
a
the previous authority must notify the applicant that the Corporation is to be the local planning authority for the application,
b
the application must be accompanied by a copy of any representations received concerning the application, and
c
the application must be treated as received by the Corporation from the applicant on the day on which it is transmitted to the Corporation.
6
Where any planning document has been, or is in the process of being, issued by the previous authority in relation to an application to which this paragraph applies before the day on which it is transmitted to the Corporation, no further planning document is required to be issued by the Corporation solely as a result of the transfer of functions to the Corporation by this Order.
Transition provision: enforcement action3
1
This paragraph applies where a previous authority has before 1st June 2023 in relation to any land in the development area—
a
issued an enforcement notice under section 172 of the 1990 Act27,
b
served a stop notice under section 183 of the 1990 Act28,
c
served a breach of condition notice under section 187A of the 1990 Act29,
d
served a notice requiring the replacement of trees under section 207 of the 1990 Act30,
e
served a notice requiring steps for remedying the condition of land under section 215 of the 1990 Act,
f
issued a listed building enforcement notice under section 38 of the Listed Buildings Act31, or
g
served a discontinuance notice under regulation 8 of the Town and Country Planning (Control of Advertisements) (England) Regulations 200732.
2
The previous authority continues to be the local planning authority for the purposes of the notice—
a
in the case of an enforcement notice, until the end of the period for compliance with the notice (construed in accordance with section 173(9) of the 1990 Act);
b
in the case of a stop notice, until the notice ceases to have effect (construed in accordance with section 184(4) or 184(5) of the 1990 Act33);
c
in the case of a breach of condition notice, until the end of the period for compliance with the notice (construed in accordance with section 187A(7) of the 1990 Act);
d
in the case of notice requiring the replacement of trees, until the end of the period for compliance (construed in accordance with section 207(3) of the 1990 Act);
e
in the case of a notice requiring steps for remedying the condition of land, until the end of the period for compliance with the notice (construed in accordance with section 216(7) of the 1990 Act);
f
in the case of a listed building enforcement notice, until the end of the period for compliance with the notice (construed in accordance with section 38(3) of the Listed Buildings Act);
g
in the case of a discontinuance notice, until the end of the period within which the display or the use of the site, as the case may be, is to be discontinued (construed in accordance with regulation 8(3)(c) of the Town and Country Planning (Control of Advertisements) (England) Regulations 2007).
3
The previous authority must transmit a copy of the notice to the Corporation.
Transitional provision: planning appeals4
1
This paragraph applies where an appeal is made to the Secretary of State under—
a
section 78, 174 or 208(1) of the 1990 Act,
b
section 20 of the Listed Buildings Act34,
c
section 21 of the Hazardous Substances Act35, or
d
regulation 19(1) of the Tree Preservation Regulations,
in respect of a decision or notice, or failure to make a decision or give notice by a previous authority in relation to any land in the development area before 1st June 2023.
2
The previous authority—
a
continues to be the local planning authority for the purposes of the appeal,
b
must notify the Corporation of the appeal, and
c
must transmit to the Secretary of State any representation from the Corporation.
Transitional provision: compensation in connection with planning functions5
1
Where a right to compensation arises under section 107, 108, 115 or 186 of the 1990 Act36, section 28 or 29 of the Listed Buildings Act or regulation 24 of the Tree Preservation Regulations in consequence of action taken in relation to any land in the development area by a previous authority, the liability to pay compensation lies with that authority.
2
Where—
a
the Secretary of State makes a determination—
i
of an appeal against action taken by such an authority as is mentioned in sub-paragraph (1), or
ii
on a reference made to the Secretary of State by such an authority, and
b
that determination gives rise to a right of compensation,
that authority is liable to pay the compensation.
3
Where the Secretary of State makes an order under section 100 of the 1990 Act37 in respect of any permission to develop any land in the development area granted before 1st June 2023, the previous authority in relation to that land when the permission was granted is liable to pay any compensation arising from the order.
4
Where before 1st June 2023 the Secretary of State—
a
makes an order under section 104 or 202 of, or paragraph 11 of Schedule 9 to, the 1990 Act38 in respect of any land in the development area, or
b
serves a notice under section 185 of that Act in respect of any land in the development area,
the previous authority in relation to that land when the order was made or notice was served (as the case may be) is liable to pay any compensation arising from the order or notice.
Transitional provision: section 106 agreements6
Where before 1st June 2023 a planning obligation entered into by agreement or otherwise under section 106 of the 1990 Act39—
a
relates to any land in the development area, and
b
identifies a previous authority as the local planning authority by whom that obligation is enforceable,
that obligation is enforceable by the Corporation.
Transitional provision: local development orders7
1
Any local development order adopted under section 61A of the 1990 Act40 by a previous authority in relation to the development area (or part of it) before 1st June 2023 has effect on or after that date as if it had been made by the Corporation.
2
Nothing in sub-paragraph (1) affects any power of the Secretary of State or the Corporation to revoke a document to which that paragraph relates.
3
Where before 1st June 2023 a previous authority has taken or started any step in relation to the preparation of a local development order which relates to the development area (or part of it)—
a
that step must be treated on or after 1st June 2023 as a step taken or started by the Corporation, and
b
the previous authority must transmit a copy of any representations received concerning that draft order to the Corporation.
4
Where any planning document has been, or is in the process of being, issued by the planning authority in relation to the draft order referred to in sub-paragraph (3), no further planning document is required to be issued by the Corporation solely as a result of the transfer of functions to the Corporation by this Order.
Transitional provision: neighbourhood planning
8
1
This paragraph applies as respects any area application, neighbourhood forum application or order proposal which—
a
relates in whole or in part to land in the development area,
b
was made before 1st June 2023 to the previous authority, and
c
has not been determined by that date.
2
The application or proposal referred to in paragraph (1) is treated as if it had been made—
a
in relation to such of the development area as corresponds to the area, or part of the area, to which the document relates, to the Corporation, and
b
in relation to such of its area outside of the development area as corresponds to the area, or part of the area, to which the document relates, to the previous authority.
3
The previous authority must transmit any application or proposal referred to in paragraph (1) to the Corporation for determination.
4
In this paragraph and paragraph 9—
“area application” means an application for the designation of a neighbourhood development area made under section 61G of the 1990 Act41;
“neighbourhood forum application” means an application for designation of a neighbourhood forum made by an organisation or body under section 61F of the 1990 Act42;
“order proposal” means a proposal for a neighbourhood development order for the purposes of section 61E of the 1990 Act43 submitted by a qualifying body44 under paragraph 1 of Schedule 4B to the 1990 Act45 or a community right to build order submitted by a community organisation46 under paragraph 1 of Schedule 4B to the 1990 Act, as read with paragraph 2 of Schedule 4C to the 1990 Act47.
9
1
Any step taken or started before 1st June 2023 by a previous authority in relation to an area application, neighbourhood forum application or order proposal transmitted to the Corporation under paragraph 8(3) is to be treated on and after that date as a step taken or started—
a
in relation to the development area, or part of the development area, as corresponds to the area, or part of the area, to which that document relates, by the Corporation, and
b
in relation to such of its area outside of the development area, or part of the development area, as corresponds to the area, or part of the area, to which that document relates, by the previous authority.
2
Where the previous authority transmits an area application, neighbourhood forum application or order proposal to the Corporation for determination under paragraph 8(3), the application must be accompanied by a copy of any representations received by the previous authority concerning the application or proposal.
3
Where any planning document has been, or is in the process of being, issued by the previous authority in relation to an area application, neighbourhood forum application or order proposal before the day on which it is transmitted to the Corporation under paragraph 8(3), no further planning document is required to be issued by the Corporation solely because the application or proposal has been transmitted.
4
Where an order proposal transmitted to the Corporation under paragraph 8(3) has been submitted for examination under paragraph 7 of Schedule 4B to the 1990 Act before 1st June 2023 and the person appointed to carry out that examination has not at that date made their recommendations—
a
nothing in this Order prevents that person from deciding that the document meets the requirements set out in paragraph 8 of that Schedule, and
b
that person must send their recommendations to both the Corporation and the previous authority.
Schedule 2Transitional provision in relation to discretionary relief from non-domestic rates functions exercised by previous authorities prior to 12th May 2023
Transitional provision in connection with functions in relation to discretionary relief from non-domestic rates1
1
This paragraph applies in respect of any functions which are transferred to the Corporation by virtue of Part 3 of this Order and in respect of which a previous authority ceases to have those functions.
2
Where before 12th May 2023 a previous authority has made a decision or determination under section 47 of the 1988 Act, that decision or determination has effect on and after that date as if it had been made—
a
in relation to qualifying hereditaments in the development area, by the Corporation; and
b
in relation to any other hereditament, by the previous authority.
3
Anything which before 12th May 2023 was in the process of being done by, to or in relation to the previous authority in connection with any of the functions mentioned in sub-paragraph (1) may be continued after that date by, to or in relation to the Corporation and, if continued, is to be treated as having been done by, to or in relation to the Corporation.
4
Nothing in sub-paragraph (3) requires the Corporation to continue with any step mentioned in that sub-paragraph.
(This note is not part of the Order)