Councillors vote to return £6m education contribution to developer

Councillors vote to return £6m education contribution to developer

South Ayrshire Council has formally agreed to return almost £6 million in education contributions to a housing developer, after ruling that the school‑capacity expansion the money was intended to fund is no longer required.

The local authority’s Regulatory Panel voted to modify the Section 75 agreements attached to Mactaggart & Mickel’s Greenan development, around 400 homes approved in 2009 and renewed in 2018, clearing the way for the repayment.

Planning officers told members that the contribution had been secured to mitigate an anticipated rise in pupil numbers from the new homes. However, updated evidence provided by the developer, and accepted by the council, showed that the projected increase in children “has not materialised”.



Craig Iles, service lead for Planning and Building Control, stressed that the decision was not a planning application but a legal matter concerning the obligations tied to the development. He underlined that the council had no entitlement to retain the money once the justification for it had fallen away.

“The developer contribution money, while held by the council, is not the council’s money,” he said. “If the reason for the mitigation has not come to pass, the council has no legitimate reason to keep the money, and it should be returned.”

Members were also reminded that the Section 75 agreement imposed a strict deadline: the education payment would have needed to be spent by September 2024, or else be subject to repayment.

Several councillors backed the officers’ recommendation, noting that the original contribution had been designed to “future‑proof” the school estate, but demographic trends had shifted.



Councillor Martin Kilbride said the decision reflected good joint working between Education, Planning and the developer: “The money was for extensions to the school estate, if needed. We’re now at the stage where the predicted numbers aren’t needed.”

With the panel voting to approve the modification, the council will now proceed with returning the unused education contributions to Mactaggart & Mickel.


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