Understand the planning regulations when pursuing initiatives to raise revenue for your school, says Lucy Anderson, associate director at  planning consultancy Boyer

The new Labour government’s policy of charging VAT on school fees is just one reason why independent schools are looking to make savings. Economising without affecting quality is not just necessary in view of this shock to school finances, it’s simply good business sense. So how can planning help?

Creating a unique selling point is central to many schools’ business strategies and certainly unique benefits enable schools to differentiate themselves from the intense competition. We are increasingly seeing schools introducing new facilities which do exactly that. Post-Covid there’s been a focus on supporting pupils’ physical and mental health. Dedicated facilities can support counselling, physiotherapy and more. Sensory gardens and conditioning suites can provide a competitive edge.

Permitted development rights

Inevitably, new (and many repurposed) facilities require planning permission, but permitted development rights (PDR) provide a welcome alternative to submitting a planning application through the local authority and waiting a standard eight or 13 weeks (but often more) for determination.

The legislation surrounding PDR is often complex and can be hard to interpret, with several specific conditions and requirements which have to be adhered to. PDR is best known for change of use within the built environment – which, in the case of conversions from offices to residential has sparked some controversial headlines. PDR can also enable homeowners to add a (size-limited) extension without the need for a full planning application subject to satisfying certain criteria.

For schools and other educational estates, Schedule 2 Part 7 Class M of The Town and Country Planning (General Permitted Development) (England) Order 2015 (as amended) allows for certain extensions and alterations to be made to buildings, as long as the amendments meet a certain set of criteria and parameters.

This schedule also allows for the provision of a new hard surface (such as car parking spaces) to be provided within the curtilage of an existing school, college and university, although this can be limited to a relatively small area.

However, it’s important to recognise that while the opportunities relating to schools under PDR are more limited than for other sectors, they can still be extremely beneficial from an operational perspective, particularly in terms of making more efficient use of external space. For instance, there are also opportunities through PDR to make temporary adjustments and erect temporary structures (that is, they are required to be moveable) within a school, which could support the use of outside spaces for external events.

It is, however, important to note that permitted development is only allowed in specific circumstances and is often time limited. For example, a school recently considered the option to open its tennis courts and swimming pool to the public. To do so required additional floodlighting, but as the lights were temporary and limited to a specific height, this could be achieved through PDR (as opposed to a formal planning application), at comparatively little cost and time to the school.

External use of performance spaces

Performance spaces are commonly hired out for external use, particularly during school holidays when they might be used for music or drama courses or festivals. The more flexible the space, the more opportunities it presents – and PDR can help to create this flexibility.

Planning permission may be required for the changes to access and parking capacity which invariably come with changes to facilities, although it may be possible to achieve some flexibility through PDR. However, this applies in some circumstances but not all, so it’s always worth checking with a planning consultant. This is especially important if the site includes listed buildings, or adjoins the setting of a heritage asset, as many PDRs cease to apply in relation to listed buildings.

Certificate of lawful development

Although the changes described above can technically be exercised without obtaining formal planning permission, from a commercial standpoint there are also benefits of submitting an application to secure a certificate of lawful development. The main benefit is this reduces the prospect of any enforcement action being taken by the local planning authority, while also providing sufficient comfort that the structure is legally compliant with the relevant legislation – which is particularly important when it comes to any acquisitions or disposals of assets.

In terms of the application process, although delays are commonplace throughout the planning system, the process of applying for a certificate of lawful development has been streamlined recently. This means there are only a limited number of key considerations able to be taken into account and in line with government guidance, the statutory timescale for a decision is eight weeks.

At Boyer we have prepared, submitted and managed these types of applications for many clients, securing consent for certificates of lawful development for their peace of mind. We have seen many times over what a great opportunity this presents in increasing revenue at very little expense.

Land sale options

One option for realising financial value from a school’s facilities is the potential sale of surplus land for development. Many schools which were established in more rural areas may have seen a change in the landscape and their setting over time. Consequently land attached to the school estate may attract a high value as potential residential land as they are often in accessible and sustainable locations.

For those thinking of benefitting from situations such as this, the starting point is an analysis of local land use and opportunities, which includes the local planning authority (or mayoral) development plan and growth targets, proposed changes such as new schools and transport infrastructure, demand for land, the local market value and property prices. If the land currently accommodates any existing playing fields/sports provision (either in public or private use), the loss or relocation of these facilities would need to satisfy Sport England requirements. At Boyer, we can assist in undertaking appraisals which can assess the opportunities and constraints of a parcel of land.

It’s also important to look at the accessibility of the current site, any potential restrictions to development (such as landscape or heritage designations), its proximity to local services and amenities and any physical restrictions or benefits. This will help determine the opportunities that may exist for releasing land for new development, which in turn can help to generate revenue and support further development of facilities within the school.

Maintain good relationships with the local planning authority

Our experience of schools seeking to create maximum value from their facilities is that flexibility is much more easily obtained if the schools have a good relationship with the local planning authority. Schools should seek to ensure that readily available communication channels exist which enable open dialogue and can make a world of difference, especially when there is a clear correlation between the school’s business success and the impact on the local economy.

Lucy Anderson