A 540-home development has been approved for a village after authorities were told they had acted "unreasonably" leaving taxpayers to pick up the pieces.
A planning appeal hearing was launched in February by land owner Merton College, Oxford due to Cherwell District Council and Oxfordshire County Council initially rejecting its proposals to build the houses near Rutten Lane in Yarnton.
Concerns about the development taking place in an area "prone to flooding" and about a "low amount" of affordable housing were eventually dropped with both councils accepting the developers' claims the new homes would not add to flood risk.
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Cherwell District Council and Oxfordshire County Council have now been told they must pay the costs of the appeal to Merton College due to behaving "unreasonably" and thereby causing "the party applying for costs to incur unnecessary or wasted expense in the appeal process".
Planning inspector Jonathan Bore said: "Costs should only be awarded against a third party in exceptional circumstances. In this case those circumstances exist.
"The county council’s lack of cooperation with other parties and its delay in providing information led to the applicant incurring unnecessary expense in preparing the proof of evidence in relation to education matters, reviewing it and preparing a rebuttal proof of evidence."
Cherwell District Council meanwhile was said to be "exceedingly late in seeking further information and amendments from the applicant".
Mr Bore added: "The council delayed development that should clearly have been permitted, failed to produce evidence that substantiated each putative reason for refusal, and issued putative reasons for refusal on grounds that were capable of being dealt with by planning condition or in an obligation."
We have asked both councils for clarification on how this situation came about and whether it offers much confidence in the planning process to developers or residents.
A county council spokesman said: "Oxfordshire County Council is very disappointed with the inspector’s cost award decision and is currently considering the decision as well as next steps."
A Cherwell District Council spokesman added: "This appeal decision relates to a site allocated for residential development in the Council’s Local Plan. Officers are considering the inspector’s decisions closely."
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A Merton college spokesman said: “The independent inspector awarded the college costs associated with the appeal. As an education and charitable organisation, with a fiduciary duty to responsibly manage our finances, we anticipate claiming these costs in line with the legal judgement.”
Heavy rainfall in 2021 left many of Yarnton’s roads submerged underwater.
But planning agents for Merton College claim the proposed homes would “improve, not worsen, the current flooding situation”.
Flood-related objections to the application are also listed on the Cherwell District council website.
Kidlington Green councillor Ian Middleton said: "The council dragged us through a planning appeal and then didn't back it up.
"I think they both should have put up more of a fight because there were very good reasons for it to be appealed."
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