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Developer contribution bills in limbo after landmark court ruling

Chapelton of Elsick street with trees and houses.
Alison May lives in Chapelton.

North-east transport chiefs have warned a landmark court ruling on how much developers should contribute to local infrastructure will cost the region millions of pounds.

Last year the Duke of Fife, who is the Queen’s cousin, successfully appealed against a developer contribution bill from two north-east councils which his lawyers claimed was unlawful.

The row between the duke and the Aberdeen City and Shire Strategic Development Authority (SDPA) began in 2013 and last year lawyers acting on behalf of the developers building the Chapelton of Elsick housing project won the battle to slash their contribution from £8million to £287,000.

Now board members of the region’s transport body Nestrans have warned that the landmark Court of Session decision, which is now being appealed by both councils to the Supreme Court, has left developer contributions for other projects in limbo.

At a board meeting yesterday, Nestrans director Derick Murray said: “The Supreme Court granted the right to appeal and that has been supported by both council’s and is going ahead.

“It will take some time and the estimated timescale is 18 months.”

Mr Murray added that contributions of more than £23million to the north-east’s strategic transport fund have been “agreed”.

The money would be used to pay for major transport infrastructure in the region, including upgrades to the A96 Aberdeen to Inverness route.

Board chairman and Aberdeen City councillor Ramsay Milne said: “Aberdeen has lost about £4million already and this money we can’t get back if we win the case, our lawyers tell us.

“There are section 75 contributions agreements that people are now not willing to sign because of the situation.”

He added: “In this case we could win, lose or draw. It’s up to the courts to decide.”

No contributions have been made to the strategic transport fund since December last year when the two councils were given leave to appeal. No further contributions agreements have been signed either.

Nestrans currently has £1.8million in the fund.