Council ups settlement offer to £2m+ for cost of planning appeal won by Stansted Airport operator

Uttlesford District Council is to make a Part 36 Offer to Stansted Airport Limited (STAL) of £2.05m after STAL refused the local authority's initial offer of £1.4m for costs the operator incurred during a planning appeal.

A report presented at a council meeting last week (13 October) by the council's chief executive, Peter Holt, recommended that the council approve the revised Part 36 offer to STAL, which includes £50,000 to cover interest.

Holt also asked that the council give him further authority to simultaneously make a second offer – referred to as an "all-in offer" – to STAL in respect of the planning appeal costs in the sum of £2,100,000, which would include all interest and costs incurred by STAL in negotiating the settlement.

He also requested that he be authorised to propose resolving the matter via mediation, should the operator reject both offers.

The council agreed with Holt's recommendations and voted them through.

According to the report, the council will have to dip into two separate reserves in order to make the payment.

The background to the Part 36 offer was that STAL submitted on 22 February 2018 a planning application for works and to substantially extend passenger numbers (to 43 million a year).

That application was refused by the council's Planning Committee on 20 January 2020.

On 24 July 2020, STAL submitted an appeal against the committee's decision.

The Planning Inspectorate heard STAL's appeal over 30 days between 12 January and 12 March 2021. The inspectors found in STAL's favour by order dated 26 May 2021.

Uttlesford subsequently challenged the inspector's decision in the High Court, which was dismissed on 1 October 2021.

The council resolved on 6 October 2021 to accept the High Court's decision without seeking further leave to challenge "and to accept that this battle had ended", the chief executive's report noted.

STAL's legal costs of that High Court challenge were assessed by the Court and have been paid. However, payment by the authority of STAL's costs of the original planning appeal remained outstanding and it was those costs that were the subject of this report.

Uttlesford made an offer of £1.4m in June this year, but STAL refused it, leading to the now increased offer.