‘Holbeach needs money now’ is the message a town councillor sent to South Holland District Council as planners approved reduced contributions for Ashwood Homes development

Holbeach needs money now – according to a town councillor who fought against a developer’s bid to reduce its affordable housing and roundabout payments.

Coun Sophie Hutchinson proposed South Holland District Council’s planning committee refuse a recommendation to approve a compromise deal for Ashwood Homes and its 900-home Holbeach Meadows development in Hall Gate.

The developer had applied to ditch 142 affordable homes and cut a £1 million payment it had agreed towards the A151/A17 Peppermint Junction. It submitted a viability assessment alongside its application which suggested the development would be on track for a £7.7 million loss even without the affordable homes and financial contributions.

While Coun Hutchinson did not get a seconder, members of the committee spoke of their disappointment with the reduction bid. They have agreed a compromise deal in which Ashwood would provide 140 affordable homes and would pay £900,000 towards Peppermint junction instead of £1million.

During the debate Coun Hutchinson said: “There will be a significant reduction of affordable housing on the site. It was meant to be 297 and reduced to 142. I personally feel that is unacceptable.”

The Holbeach ward member highlighted that Government guidance is that 15-20% profit means a considerable return to development. She also highlighted a section of the independent report that showed the developer would make a £31 million profit with the current section 106 agreement.

Coun Hutchinson said; “Government guidance is clear review mechanisms are not there to protect developer’s returns.

“I believe that Lincolnshire County Council were right in their first comments that Section 106 contributions are about need and not affordability.

“Holbeach needs contributions now and we cannot wait for 200 more houses to be built before any money is handed over. The decision is between letting the developer have an extra £1 million profit or ensuring the contributions are delivered to meet the needs of our communities and for me the decision is clear and I would propose we refuse the application.”

Coun Chris Brewis quipped about how long before Holbeach gets city status but added: “The idea now that a proportion of contribution is met by the general taxpayer on this site I think is a disgrace. If they can’t afford to develop the site sell it onto someone else.”

Coun Henry Bingham questioned if there would be a cut-off time for viability studies and went onto move the officer’s recommendation to approve the reduced contributions.

Planning committee chairman Coun James Avery said: “It’s a big application and I’m disappointed that the application is looking for a big reduction on developer contributions. Having the viability being assessed there is a very small compromise from our point of view, I’m comfortable with that and shows that viability adds value.”

Coun Jack Tyrrell expressed his disappointment that the county council were happy to knock £1 million off.

He said: “Let’s be honest, the developer has chucked in his cards and said ‘I don’t want to pay anything’ and hope for the best and have some knocked off. That’s what he has done and has got away with it.

“If the county council says they are willing to lose £1million, what can we say?”

Coun Rob Gibson questioned where the option was to leave it as it was but added: “I don’t agree with reducing this at all.”

He was told by head of planning Phil Norman that would be contrary to the viability assessment.

The officer’s recommendation to approve the reduced contributions was passed by eight votes with four against.