Planning obligations and Section 106 agreements

What is a planning obligation?

A planning obligation is a legal agreement between the planning authority and the applicant/developer and any others that may have an interest in the land. An obligation either requires the developer to provide a financial contribution, physical infrastructure or a management plan in relation to their development proposals or restricts what can be done with land following the granting of planning permission.

Planning obligations work in parallel with financial contributions sought through the Community Infrastructure Levy (CIL)

The agreements are made under Section 106 of the Town and Country Planning Act 1990 (as amended), and enable development proposals to meet the needs of the community by securing contributions towards community infrastructure. Section 106 agreements are normally required under Policies CN1 and CN6 of the Basingstoke and Deane Local Plan 2011-2029. National Guidance on S106 planning obligations is set out in the Community Infrastructure Levy (CIL) Regulations 122 and the National Planning Policy Framework (NPPF) and the Planning Practice Guidance (PPG).

When are planning obligations sought?

The borough council has considered the growing impact of all new residential and non-residential development on community resources in the borough and contributions will be sought on planning applications for:

  • Residential development
  • commercial developments of 100 sqm floorspace or more
  • other non residential developments may also require a contribution to transport improvements

A legal, administration and monitoring charge will also be required for all Section 106 agreements.

S106 agreement

All planning obligations/contributions must consider the wording in the Adopted R123 list to ensure that S106 agreements are not used to provide the same form of infrastructure as that which is intended to be funder from CIL. Planning obligations/contributions can include:

  • Affordable Housing;
  • New schools on specific allocated sites in the Adopted Local Plan;
  • Site related transport improvements;
  • Travel Plan measures;
  • Local multi-functional green space, local equipped play areas and local allotments;
  • On or off-site habitat creation, restoration and management to mitigate or compensate biodiversity impacts;
  • Provision, improvements and management of sports and recreational facilities that directly serve a development;
  • New community facilities to serve sites;
  • Community work initiatives;
  • Public art in new developments;
  • Site related flood and water management;
  • Employment and skills training;
  • Restrictions on the development of an area of land, or permit only specified operations to be carried out on it, such as the protection of parks and open spaces.
  • The transfer of ownership of an area of open space to the council with a suitable fee to cover its future maintenance (commuted sum).
  • The developer will plant a specified number of trees and maintain them for a number of years.

Guidance on this issue is set out in the Planning Obligations for Infrastructure SPD which was adopted in March 2018 and came into effect on 25 June 2018. The fees and charge referred to in the SPD are updated on an annual basis and can be download below. Up to date costs for transport and education contributions should be sought from Hampshire County Council.

Community Infrastructure Levy (CIL)

The Community Infrastructure Levy is a levy that local authorities can choose to charge on new development in their area, with the funds raised being used to fund a wide range of infrastructure. Basingstoke and Deane Borough Council is proposing to introduce CIL and more information can be found by visiting our webpage on Community Infrastructure Levy.

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