Decision details

East Lancashire Paper Mill Site Update - Part A

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: No


Councillor Eamonn O’Brien, Leader and Cabinet Member for Strategic Growth and Skills, provided Members of the Cabinet with an update on the proposals for the East Lancashire Paper Mill

The Leader reported that the Council has been working in

partnership with Homes England since 2016, the Council has now entered in to a Collaboration Agreement with Homes England which will see Bury’s land transferred to Homes England for onward lease with Morris Homes.


This report provides an update to the March 2022 Cabinet Paper ‘East

Lancashire Paper Site Update’ and sets out changes in the original offer

approved by Cabinet, resulting from a change in market conditions and viability appraisals.


Members discussed the proposals and the following comments and issues were raised:


·         The Leader reported the decision to change the proposal would ensure that the Council receives a greater subsidy.

·         It is proposed that the site will have a mix range tenure but this is to be determined.  Proposals to be considered at the Planning Committee in December 2022.



That Cabinet:

1. Agrees to the revised land value offer received by the Council and Homes

England in October 2022, which will result in a reduced capital receipt from

Morris Homes (North) Ltd based on a deferred payment basis.

2. Notes the delivery of 25% Affordable homes provision will now be undertaken via a standard S.106 agreement.

3. Notes the extensive partnership work with Homes England (as major land

owner) and Morris Homes that has enabled an ambitious delivery schedule to

be maintained which will result in housing, improved open space and

replacement cricket facilities.

4. Delegate the finalised terms of the land sale agreement to the Executive

Director of Place in consultation with the Cabinet Member for Finance, S151

Officer and Monitoring Officer.


Reasons for the decision:

To ensure that Cabinet are kept fully informed on progress regarding the delivery of the East Lancashire Paper Mill site working in collaboration with Homes England and Morris Homes as the preferred bidder.

To ensure Cabinet are aware that the previous Section 73 application made on viability grounds has been withdrawn on the basis that the scheme is deemed viable without the need for Homes England funding.

In light of the above, to ensure approval is in place for agreeing a revised land

value offer and Cabinet are appraised of the capital receipt which continues to

offer the Council the most attractive financial proposition.


Other options considered and rejected:

The other option considered and rejected is set out in the Part B report.

Publication date: 18/11/2022

Date of decision: 16/11/2022

Decided at meeting: 16/11/2022 - Cabinet

Accompanying Documents: