Supreme Court dismisses developer appeal by local authorities

The ruling was made at the Supreme Court in London

The Supreme Court has dismissed an appeal by local authorities to have a developer pay millions of pounds towards transport improvements in the north east of Scotland.

It follows a lengthy dispute between Aberdeen and Aberdeenshire councils and the Elsick Development Company.

In 2013, work began on the Chapleton of Elsick new town in Aberdeenshire.

The developer was asked to contribute to a Strategic Transport Fund for public transport improvements.

The Court of Session ruled it was not lawful for the developer to be obliged to pay for upgrades which were not related to the proposed development.

Aberdeen and Aberdeenshire councils appealed, but the Supreme Court in London unanimously dismissed the appeal on Wednesday morning.

Study implications

Aberdeenshire Council's head of planning, Robert Gray, said: "We note the decision of the Supreme Court and will be looking in detail at the implications for this area.

"The Strategic Transport Fund was an innovative mechanism to ensure developers made appropriate contributions to improvements to infrastructure, in particular road and rail.

"It had, at its heart, the principle that genuinely joined-up developments were in the interests of the entire region and promoted a more sustainable approach to planning policy.

"We will continue to seek to mitigate the impact arising from development for delivery of infrastructure through our Developer Obligations process."

A spokesperson for Aberdeen City Council said: "This is a detailed judgement from the Supreme Court and it is being reviewed fully by Aberdeen City Council and Aberdeenshire Council.

"The ruling and its implications will be considered by the SDPA (Strategic Development Planning Authority) in due course."