Yearly Payment Announcement

During the AGM last year, it was announced that The Trust intended to explore the possibility of re-baselining the Yearly Payment.  The original figure of £189 was determined in 2001, before The Trust was formally established.  The sum was a presupposition based on the cost of managing all of the land and assets that would eventually be transferred to The Trust and then divided by the anticipated number of properties.  The figure was then linked to the Retail Price Index, which The Trust legally changed to the more appropriate Consumer Price Index (CPI) several years ago.

 

Now that we are closer to knowing the full extent of the areas that the Trust will ultimately be responsible for, and the number of properties, we have the capacity to make a more informed decision compared to when the initial figure was determined over 20 years ago.  There are no guarantees that our aspirations will be successful, as it’s never been done before, and as a minimum a Deed of Variation to the S106 will be necessitated.  I must stress that the Board are not empowered to vary the Yearly Payment, so the actions this year do not set a precedent irrespective of the outcome.

 

Unfortunately, with plans for Zone 10B (land between Bourne Heights and Oak Spring Place) yet to be submitted, we are unable to conduct this before the next payment is due.  We are optimistic of achieving a successful outcome that will result in a reduced fee, so to that extent, the Board have unanimously agreed that the Yearly Payment will be frozen this year.  The CPI figure of 5.4% would have resulted in an increase of £16.51, leading to a total amount of £322.19 for FY22/23.  Therefore, the Yearly Payment will remain at £305.68.  With us all facing increasing strain on our finances, I hope this comes as welcome news.

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