Section 106 planning obligations

What are s106 planning obligations?

Planning obligations (also known as section 106 agreements of the Town and Country Planning Act 1990) are private agreements made between local authorities and developers or undertakings offered unilaterally by a developer, that are attached to a planning permission to help make development acceptable in planning terms.

Planning obligations can prescribe the nature of development (for example, requiring a given portion of housing is affordable), compensate for loss or damage created by a development (for example, loss of open space), or mitigate a development's impact (for example, through increased public transport provision).

The use of planning obligations is currently guided by government circular 05/2005. This states that obligations should only be used where five tests are met.

It enables local authorities to pool obligations to ensure that larger items of infrastructure, such as new school places are provided, and states that any standard charges should be set out in adopted planning guidance. 

The new Community Infrastructure Levy Regulation 122 (which came into effect on 6 April 2010) has reduced the five tests described in Circular 05/2005 to three tests.

Section 106 SPD

The council and planning applicants can use the Section 106 Supplementary Planning Document (SPD) to guide negotiations for Section 106 planning contributions. Contributions may be required before planning permission can be granted.

View our existing S106 SPD which was adopted by the council on 24 July 2007 relevant and proportionate to needed infrastructure.