Community Infrastructure Levy (CIL)
CIL and Planning Obligations (Section 106 Agreements)
When will CIL be used?
Payment of CIL is mandatory on all planning applications where the conditions for CIL liability are met.
When will planning obligations be used?
The use of planning obligations (Section 106/S106 agreements – legally binding agreements under Section 106 of the Town and Country Planning Act 1990) has been scaled back since the implementation of CIL. However, new development often has a direct impact on its surroundings, which creates a need for additional infrastructure or improved community services/facilities. Hence, affordable housing and site specific infrastructure such as highway works required to mitigate the impact of or enable a development will continue to be secured on a site by site basis through either S106 agreements or planning conditions. They may also be used in circumstances where a development proposal results in the loss of an existing facility or site feature, and we require the replacement of that facility/feature either directly by the developer or through a financial contribution set out in a S106 agreement.
We will not request S106 agreements for anything which is set out in the CIL Regulation 123 Infrastructure List.
How will we use financial contributions secured through S106?
Section 106 monies must be spent in accordance with the terms set out in the legal agreement. Usually this is for a specific purpose and tied to the area local to a specific development.
What will happen with existing Section 106 funds that have already been collected?
These will stay within the Council and must be spent in accordance with the terms of the relevant legal agreement.
How will we use CIL?
CIL monies must be spent on infrastructure to support growth, but their use is not tied to a specific development or the provision of specific infrastructure. CIL can be spent anywhere within the Borough. We can also pass money to bodies outside the area to deliver infrastructure which will benefit the development of the area, such as the Environment Agency for flood defence. We are also able to collaborate with others to pool revenue and support the delivery of sub-regional infrastructure.
What happens if planning obligations are required?
Our Legal Services Team will draft a S106 agreement to be signed by the Council and the developer/landowner. On submission of a planning application, if it is considered that a S106 agreement is likely to be necessary, you will be required to confirm that you are content for it to be drafted in accordance with the model S106 agreement available to download from this page. This provides an example of how planning obligations may be drafted appropriately.
- SPD2 Planning Obligations: A Guide to Section 106 and Developer Contributions 2015
- Model Section 106 Agreement
Page last updated: 20/06/2017