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Section 106 obligations

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This page contains the infrastructure funding statement, the developer agreement, the developer agreement – contribution and transaction documents.

 

Under section 106 of the Town and Country Planning Act 1990 a Local Planning Authority can seek planning obligations, for both on-site and off-site contributions, when it is considered that a development will have a negative impact that cannot be dealt with through planning conditions. For example, a new residential development can place additional pressure on things such as local infrastructure and school capacity. Planning obligations (Section 106) aim to mitigate the impact of a new development on existing facilities.

Planning obligations assist in mitigating the impact of unacceptable development to make it acceptable in planning terms. Planning obligations may only constitute a reason for granting planning permission if they meet the three statutory tests as set out in the Community Infrastructure Levy (CIL) Regulations 2010 (as amended)1 and in paragraph 56 of the NPPF, they are;

  • necessary to make the development acceptable in planning terms.
  • directly related to the development.
  • fairly and reasonably related in scale and kind.

Section 106 planning obligations include:

  • site-specific financial contributions – these are secured and must be used for defined purposes for instance, the provision of education facilities, traffic and highways related works, open space provision and affordable housing contributions (where accepted in lieu of on-site provision)
  • provision of on-site affordable housing or education provision
  • non-financial obligations including requirements such as training and employment management provisions and travel plans.

Infrastructure Funding Statement

Local Authorities are now required, under amendments to regulations (The Community Infrastructure Levy (Amendment) (England) Regulations 2019 No.1103 that came into force 1 September 2019) to produce an Infrastructure Funding Statement annually, that sets out details about planning obligation receipts and anticipated expenditure. This is to provide clarity and transparency to local communities and developers on the infrastructure delivered and expenditure incurred.

The infrastructure funding statement is an annual report which provides a summary of the financial and non-financial developer contributions relating to Section 106 Agreements (S106) within the financial year (1st April 2019 until 31st March 2020).