Agenda item

The report highlighted that the population of East Devon was increasing at more than twice the national average, driven in part by new housing developments. Prompted by financial pressures, the council took a decision around 15 years ago to stop adopting public amenities in such developments. In the intervening period a private management model has emerged, part of a wider national trend. The Competition and Markets Authority (CMA) has recently concluded that the proliferation of such models was leading to significant customer detriment. 

The report set out the need for a new approach to the stewardship of community assets in East Devon’s new housing-led developments, including strategic scale new communities, that focuses on creating social value for the lasting benefit of residents.  This included:

·        A Stewardship Strategy targeted at new developments;

·        A Charter Mark for community friendly developments;

·        Annual quality of life survey in new developments

·        Establish a Place, Infrastructure and Strategic Planning Portfolio Holder Group to consider the Council’s approach and report to Cabinet

Cllr Kim Bloxham welcomed the report and its recommendations, especially the creation of a Portfolio Holder group; and expressed a desire to join the group. She stressed the importance of including input from the Cranbrook Placemaking Group, which she felt was currently underrepresented in the report.

Key concerns she raised included:

• Service Disparities: A significant and complex disparity between “Old” and “New” East Devon. Residents in new developments like Cranbrook pay for services through both council tax and estate rent charges, while those in older areas receive more services from East Devon District Council (EDDC) without extra charges. This inequality is especially noticeable within parishes like Broadclyst.
• Estate Rent Charges & Management Companies: She strongly criticised the use of private Management Companies funded by estate rent charges, citing high fees, lack of accountability, and poor service quality. Cranbrook’s experience in 2018 showed that transitioning services to the Town Council reduced costs for residents and improved transparency.

·        Lack of Clarity and Risks in Governance: There is confusion between the roles of Management Companies andManagement Agents. The current model is hard to unwind once established, and some developers resist handing over public open spaces to councils. She warned against the formation of interim Management Companies while waiting for Community Governance Reviews, which risk locking communities into costly and unaccountable arrangements.

·        Need for Local Accountability: She argued that Town and Parish Councils were best placed to manage local services. If they don’t take on these responsibilities, residents will continue to pay more. Cranbrook has shown this model works and could serve as a template for other towns.

·        Future Governance & LGR: With the potential shift toward a unitary authority, the role of Town and Parish Councils should be re-evaluated. A clear, sustainable stewardship model for Cranbrook depends on a boundary review and avoiding new management company setups in future developments.

·        Urgency and Opportunity: She asked Cabinet to act decisively, adopt the report’s recommendations, and lead a national example in addressing the problems associated with estate rent charges and management companies, which are increasingly seen as a source of customer harm by bodies like the Competition and Markets Authority.

She concluded by emphasising that East Devon has a unique opportunity to lead on this issue and push for meaningful change.

Other comments included:

·        Timescale for developing and bringing forward the stewardship was tight, in light of local government review;

·        Concern that discretionary assets such as parks and gardens would be lost once a unitary authority was in place;

·        Pressures on local councils who were not best placed to take on and manage assets; and the timing of calculating precepts for them was tight;

·        Examples of experiences of estate charges and their value;

·        Opportunity to link with emerging local plan to be genuinely transformative in approach.

Cllr Mike Howe also expressed his desire to be a member of the Portfolio Holder group recommended.

The Chair explained that Government directive was currently not to push liability down to town and parish level.  Local Government Reorganisation should give the opportunity to look at a new “year zero”.  This was an opportunity to set the standard for future developments.

RESOLVED that Cabinet;

1.     Recognised the vital role that the effective stewardship of public amenities plays in supporting the establishment of sustainable communities.

2.     Supported the commissioning of a Stewardship Strategy targeted at new developments coming forward in the District, alongside the formulation of a Charter Mark for community-friendly developments.

3.     Supported an annual quality of life survey being undertaken across all new developments in the district in order to monitor progress.

4.     Supported the establishment of a Place, Infrastructure & Strategic Planning Portfolio Holder Group to consider the Council’s approach to the stewardship of public amenities in new developments across the district, and an Assets & Economy Portfolio Holder Group to consider the future of the Council's existing assets in the community in light of Local Government Reorganisation, with both groups to bring an initial report back to Cabinet within six months

REASON:

To ensure that new housing-led developments in the district were supported by high quality community infrastructure and public services through a management regime that was predicated upon the creation of social value.

To ensure that the Council’s approach to the stewardship of public amenities more widely remained in step with the changing context of future local government reorganisation and expected budgetary pressures.