Section 106 is a legally-binding agreement that is negotiated between us and the developer to mitigate the impacts of development on a site-specific basis. S106 is used to secure financial contributions towards the provision of infrastructure, such as:
S106 can also provide non-monetary benefits (for example, affordable housing, apprenticeships and travel plans).
Most planning obligations will involve payment of a one-off fee. However, depending on the specific nature of a scheme, contributions may be required towards the ongoing costs of running a facility or providing a service (for example, maintenance of parks and air quality monitoring).
Section 106 agreements can only be used where they are:
S106 agreements are negotiated as part of the approval process in respect of outline or detailed planning permissions (but not reserved matters). Payments are usually paid in instalments at specific agreed stages of the construction process (known as ‘trigger points’).
However, planning permission will only be granted once the Section 106 agreement has been signed.
The Section 106 Supplementary Planning Document (PDF) (adopted in November 2016) sets out our approach to negotiating Section 106 agreements.
For residential developments, financial and non-monetary contributions are generally sought on developments of ten or more units, irrespective of floorspace.
For commercial developments, financial and non-monetary contributions will generally be sought on developments of more than 1000 square metres.
There may, however, be instances where contributions are sought to mitigate the impact of smaller developments on the highway, public realm or where there has been a loss of retail or employment.
You should note that the following fees are charged in respect of the administration and monitoring of Section 106 agreements:
Recent changes to the regulations have introduced greater flexibility in how Section 106 monies can be spent. For instance, Section 106 monies can now be pooled together from a greater range of planning applications to fund the same project alongside CIL and other sources of funding.
Details relating to Section 106 income and expenditure can be found in the Infrastructure Funding Statement (PDF).
Much of our planned spending will be focused on small-scale improvement works to directly mitigate the impact of development. This includes: