A Section 106 (S106) is a legal agreement or deed, signed by the council and an applicant, developer or another party. They're generally required to mitigate impacts that a development will have on its immediate locality. It sets out what financial contributions will be paid to the council and what additional, non-financial obligations they are required to meet.
S106 payments are normally required to make a development acceptable in planning terms. Without these financial contributions and obligations to improve the immediate area, or offset or mitigate any impacts of the development, it would likely not be considered acceptable and not be given planning permission.
Financial contributions could be for archaeology, transport, public realm or open space improvements, to name just four. S106 agreements will also continue to be used to address other policy requirements that can’t be dealt with through the community infrastructure levy (CIL), such as carbon offsetting contributions.
Non-financial obligations may include things such as a sustainable travel plan for occupiers, making use of local businesses, provision of employment and training opportunities and the provision of affordable housing.
Contributions and obligations, as secured by a S106, are registered as charges with the Land Registry. They will remain as such until they have been formally discharged by the council. Please see part 2: application details.
This flowchart (PDF, 26kb) outlines what happens during the process of collecting s106 contributions and how it's spent.
Page last updated: 09 February 2023