Bus stop improvements and the contributions that fund them
Public transport contributions are easy to concede and often unjustified. This tests the usual asks against the statutory obligation tests and sets out the drafting points that decide what they really cost.
A bus stop contribution in planning is one of the easiest requests to concede and one of the easiest to challenge. It is usually a modest sum against a scheme's total obligations, it looks reasonable, and it arrives late in negotiation when everyone wants to sign. It is also frequently unjustified against the statutory tests, and the way to find out is to ask what the money buys and who decided it was needed.
The tests do the work here, not transport policy. A request can be entirely sensible as transport planning and still fail as a planning obligation.
What authorities typically ask for
The shopping list is fairly standard across highway authorities:
- A new shelter, or replacement of a pole and flag stop with a shelter and seating.
- A raised boarding kerb, usually to a specified height, to allow level access onto a low floor bus.
- Hard standing, a dropped crossing nearby and tactile paving to connect the stop to the footway network.
- Bus stop clearway markings and the traffic regulation order that enforces them.
- A real time passenger information display, with a contribution towards its power supply and ongoing data costs.
- Relocation of an existing stop to serve the development frontage.
- Revenue support towards a service: an extended route, an additional journey, or a subsidy for a defined number of years.
The first five are infrastructure. The last is revenue, and the two are treated quite differently.
The three statutory tests
An obligation may only be taken into account as a reason for granting permission where it meets all three tests in the Community Infrastructure Levy Regulations: it must be necessary to make the development acceptable in planning terms, directly related to the development, and fairly and reasonably related in scale and kind to it.
Those tests are statutory, not guidance, and they apply whether or not the authority has an adopted supplementary planning document with a standard charge. A tariff published in an SPD does not relieve the authority of showing that the particular sum satisfies the tests for the particular scheme, and that is the point at which many requests weaken.
Work through each test in turn. Is the development unacceptable without the improvement, or would it be acceptable and merely less good? Does the improvement serve the residents or occupiers of this scheme, or a wider catchment they form a fraction of? And is the sum proportionate to that fraction?
Double counting is the other check. Where the authority charges the Community Infrastructure Levy and has published its intention to fund bus infrastructure from the levy, seeking a separate obligation for the same item is not acceptable. Ask what the authority's infrastructure funding statement says about public transport.
Relocation against improvement
Relocation is the request with the strongest footing. Where a scheme puts 200 homes 500 metres from the nearest stop and a relocation brings it to 200 metres, the improvement is plainly necessary to make the development acceptable, directly related and proportionate. Those requests should be conceded quickly and delivered well.
Improvement of an existing stop already within a reasonable walk is weaker. The stop works. It served the area before your scheme and will serve it afterwards. The argument has to be that the additional demand from the development makes the current provision inadequate, which requires evidence about the current provision rather than an assertion that shelters are desirable.
Accessibility is where improvement requests are strongest. Where the existing stop has no raised kerb and no hard standing, and the development includes housing for older people or a use generating trips by people with reduced mobility, the case for level boarding connects the development to the improvement directly. The public sector equality duty under the Equality Act 2010 gives the authority a reason to pursue it, and that is a reason a developer should take seriously rather than resist.
Infrastructure compared with service subsidy
Revenue support is the harder ask to justify and the more expensive to concede, because it runs for years and is usually index linked.
To satisfy the necessity test, the authority has to show that the development's occupants would have no reasonable public transport option without the subsidised service, and that the subsidy makes the development acceptable rather than simply improving the network. On an edge of settlement scheme with no existing service within walking distance, that case can be made. On an urban infill three streets from a frequent corridor, it cannot.
Two drafting points if you do concede revenue support. Cap the total, and make the obligation pay against evidenced operator costs rather than an open ended commitment. And ask for a mechanism returning unspent money, because an authority that cannot procure the service should not keep the contribution.
Evidence that makes a request stick
From the authority's side, a request that survives scrutiny rests on an accessibility audit showing walking distances and routes to existing stops, a record of the current infrastructure at those stops, service frequency and span data, trip generation from the Transport Assessment showing the additional bus demand, a cost estimate for the works from the authority's own rates, and an apportionment showing how the development's share was calculated.
From the developer's side, the useful response is the same evidence read differently. Where the audit shows a stop 300 metres away with a raised kerb and a two hourly service, the case for a shelter contribution is weak and the case for a frequency contribution is a revenue argument the authority may not want to make.
A Travel Plan can also carry part of the load, and the interaction between travel plan measures, monitoring fees and transport contributions is covered in the note on travel plan contributions and monitoring fees in section 106.
Triggers, indexation and delivery route
Three drafting points decide what the obligation actually costs.
- The trigger. Payment on implementation is worse for cash flow than payment on first occupation, and on a phased scheme the trigger should sit with the phase that generates the demand.
- Indexation. Check the index, and then check the base date, which matters more. An obligation indexed from a base date two years before the agreement was signed carries an immediate uplift for nothing.
- The delivery route. Works in the highway are usually better delivered by the developer under a highway works agreement than funded through a contribution, because you control the programme and the cost. The note on section 278 agreements that follow a permission sets out how that route works.
Add a repayment clause. Where the authority has not spent the contribution on the identified item within a stated period, it should come back.
Where the sum comes down
Four arguments reduce these requests in practice. That the item is on the authority's levy funded infrastructure list, so an obligation for it would double count. That the apportionment treats the development as the sole beneficiary of an improvement serving a wider area. That the works are already programmed and funded from another source. And that the improvement is desirable rather than necessary, which is a policy judgement the authority has to defend with evidence rather than with an SPD rate.
None of that is a reason to fight a well founded request. A relocated, accessible stop at the development frontage is one of the few obligations that visibly improves the scheme you are selling.
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Frequently asked questions
What are the statutory tests for a planning obligation?
Under the Community Infrastructure Levy Regulations an obligation may only be a reason for granting permission where it is necessary to make the development acceptable in planning terms, directly related to the development, and fairly and reasonably related in scale and kind. These are statutory requirements, and an adopted tariff in a supplementary planning document does not displace them.
Can a council charge both the levy and a bus contribution?
Not for the same item. Where the authority has published its intention to fund public transport infrastructure through the Community Infrastructure Levy, seeking a separate obligation for that infrastructure double counts. Ask what the authority's infrastructure funding statement says about public transport before agreeing to a contribution for a shelter or an information display.
Is a bus service subsidy a reasonable request?
Sometimes, on edge of settlement schemes with no service within walking distance, where the development would otherwise be unacceptable. It is much harder to justify on urban infill near a frequent corridor. If you do concede it, cap the total, pay against evidenced operator costs, and include a mechanism returning unspent money.
Should bus stop works be a contribution or delivered by the developer?
Works in the highway are often better delivered by the developer under a highway works agreement, because you control the programme and the cost rather than waiting for the authority to procure them. A contribution suits items the authority must deliver itself, such as a traffic regulation order or an addition to a real time information network.
Why does the indexation base date matter?
Because an obligation indexed from a base date well before the agreement is signed carries an immediate uplift before anything has changed. Check both the index used and the date it runs from, and ask for indexation from the date of the agreement. On a long phased scheme that single drafting point can be worth more than the negotiation on quantum.
Sources and further reading
This article is general guidance about the planning system in England and, where stated, the rest of the UK. It is not legal or professional advice. Check your local planning authority’s validation requirements and take professional advice for your specific site.