NSIP Cost Recovery Guidance for Host Local Authorities

This guidance has been developed to support host local authorities in establishing a clear, proportionate and transparent approach to cost recovery in relation to Nationally Significant Infrastructure Projects (NSIPs).

It reflects the introduction of new cost recovery arrangements and brings together experience from across the sector, including host and neighbouring local authorities, applicants and government stakeholders. It provides a practical framework to help host local authorities identify reasonable costs, establish effective commercial arrangements and manage engagement throughout the Development Consent Order (DCO) process.

This guidance is intentionally being published at an early stage alongside the introduction of new arrangements. While it draws on existing good practice, it is recognised that this is an evolving area and that approaches will continue to develop as host authorities and applicants gain experience of operating within the new framework.

It is therefore not expected that this guidance will capture every scenario or provide definitive answers in all cases. Instead, it sets out a shared starting point to support a more consistent and transparent approach across the sector.

We expect this guidance to develop over time, informed by feedback from host local authorities, applicants and other stakeholders as it is applied in practice. In particular, we are keen to understand:

• how the framework operates across different types of NSIP and different stages of the process;
• how approaches to cost recovery evolve in practice; and
• where further clarity or examples would be helpful.

We will continue to work with partners across the sector to capture learning, share emerging good practice and update this guidance as needed.

A more consistent and transparent approach to cost recovery will help:

• support effective, constructive engagement throughout the NSIP process;
• ensure host local authority involvement is properly resourced; and
• provide clarity and confidence for applicants;

While this guidance is not prescriptive, there is clear value in host local authorities adopting broadly similar approaches wherever possible. Over time, this will help build confidence in how cost recovery operates and supports the delivery of nationally significant infrastructure.

We welcome feedback on this guidance and examples of how it is being applied in practice. This will help ensure that it remains relevant, practical and responsive to the needs of the sector.