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?
Section 106 funds that the Council receives are spent in accordance with the terms of the relevant legal agreement. Details relating to Section 106 income and expenditure can be found in the S106 Financial Reports available to download from this page.
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 City. 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 a similar manner to the model S106 agreement (available to download from this page). This provides an example of how planning obligations may be drafted appropriately.
It should be noted that any site specific matters such as Viability Review Mechanisms in relation to the provision of affordable housing will need to be considered on a case by case basis and therefore do not appear in our model S106 agreement. Additional relevant heads of terms will be drafted and applied where appropriate.
- SPD2 Planning Obligations: A Guide to Section 106 and Developer Contributions 2015
- Model Section 106 Agreement
- S106 Financial Report - 2016-2018 (Q3)
- S106 Financial Report 2016-18 (year end update)
- S106 Financial Report 2017-19 (year end update)
- S106 Financial Report - 2018 - 2020 (Year end update)
Update (September 2019):
The 2019 amendments to the CIL regulations removed the requirement for authorities to publish a CIL Regulation 123 Infrastructure List. By no later than 31 December 2020, this list be replaced with an infrastructure funding statement. However, in the meantime the list remains a useful indication of infrastructure that may be CIL funded and what is likely to be required as part of a Section 106 agreement to be negotiated on a site specific basis. It should be noted that authorities are now able to seek Section 106 contributions for any item, whether it is on the CIL Regulation 123 Infrastructure List or not and whether or not CIL will also be used to fund it.