Developers could be made to pay 60 years of road maintenance costs

Developers could be required to pay towards decades of future maintenance costs for roads, street lighting, landscaping and other highway features under proposals due to be discussed by cabinet this week.

Worcestershire County Council’s cabinet will be asked on Thursday (October 22) to back consultation on a new ‘commuted sums’ policy covering non-standard highway assets adopted by the authority.

A commuted sum is a one-off payment made by a developer to cover the future maintenance costs of infrastructure that eventually becomes the responsibility of the council.

LIGHTS: Street lights are among the features that could be funded by developers under new council plans (Image: Getty Images/iStockphoto)

The council says it currently has no formal policy for charging developers for non-standard assets created through Section 38 and Section 278 highways agreements.

Under the proposed policy, developers would be charged where they install features requiring a higher level of maintenance than the council’s standard specification.

Examples include bespoke paving, specialist street lighting, trees, landscaped areas and other enhanced highway features.

The council argues the move would help prevent taxpayers being left with the long-term costs of maintaining more expensive infrastructure.

Cabinet papers state: “Implementing a Commuted Sums Policy for non-standard assets is necessary for [the council] to ensure transparency, consistency, and financial security for maintaining non-standard highway assets.”

It adds that the policy is intended to allow developers to use higher-quality or distinctive designs while ensuring “the whole-life upkeep of these enhanced items will not fall on the public purse”.

The proposed approach follows guidance published by the Association of Directors of Environment, Economy, Planning and Transport (ADEPT) in 2024.

Under the draft policy, payments would be based on the projected cost of maintaining and replacing an asset over its lifetime.

The council proposes using periods of up to 60 years for most highway assets and 120 years for bridges and structures.

Money collected would be held in a dedicated reserve and used to support future highway maintenance.

Cabinet members are not being asked to approve the final policy this week.

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Instead, they are being asked to authorise a technical consultation with developers, planning consultants and agents, expected to run for at least six weeks.

The final policy would then be brought into force after feedback has been considered, unless consultation results in significant changes that require further cabinet approval.

The council says the alternative of taking no action would leave it facing an increasing maintenance burden as more non-standard assets are adopted into the highway network.

Councillors will consider the proposals when cabinet meets on Thursday.