Section 106 (S106) and Community Infrastructure Levy (CIL)
The two main types of developer contributions are:
- Section 106 (Planning Obligations)
- Community Infrastructure Levy
Developer contributions are based upon an established principle that developers should mitigate negative impacts created by the developments they bring forward, or where additional infrastructure is required to support the development. Developer contributions may be required as part of the granting of planning permission, making unacceptable developments acceptable, in some cases, by offsetting the impact made, through local improvements. This is usually achieved through planning condition but may be entered into through a legally binding agreement. However, developer contributions do not always make a development acceptable.
Planning obligations may be undertaken unilaterally by the developer, or by agreement with the developer and the Local Planning Authority.
Further guidance is provided in the National Planning Policy Framework and National Planning Practice Guidance.
Last updated Friday, 12th May 2023
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