Planning Obligations
Understanding Development Contributions
Without the right advice, financial obligations associated with planning approvals can significantly affect the viability and profitability of a development. It is essential to understand and plan for these contributions from the outset to avoid unexpected costs and delays.
When proposing a new development, local planning authorities may require you to contribute towards infrastructure improvements—such as transport links, education provision, public open spaces, or affordable housing. These contributions are designed to mitigate the impact of development and support sustainable growth within the community.
Section 106 Agreements
One common mechanism is the Section 106 Agreement. This is a legally binding agreement between the developer and the local authority that outlines the specific contributions or obligations required as part of a planning permission. These can be financial, such as funding local services, or non-financial, such as delivering on-site infrastructure or affordable housing. Importantly, Section 106 obligations are negotiable, and the final terms depend on both the nature of the scheme and the local authority’s policy priorities.
Community Infrastructure Levy (CIL)
Alternatively, many local authorities have adopted the Community Infrastructure Levy (CIL)—a fixed, non-negotiable charge levied on new developments. CIL rates are set locally and applied per square metre of new floor space, with funds going toward broader infrastructure needs in the area. While CIL is mandatory in many cases, exemptions and reliefs may apply—such as for self-build homes, social housing, or charitable development.
Minimising Costs, Maximising Potential
Whether your scheme is subject to Section 106 obligations, CIL, or both, our expert guidance ensures that your financial liabilities are minimised and your project's viability is protected. We can provide early advice on likely contributions, explore all available reliefs or exemptions, and negotiate on your behalf to achieve a balanced and fair outcome.By drawing on our deep knowledge of local policy and our strong working relationships with planning authorities, we help you plan confidently and unlock the full potential of your site.
Need support navigating developer contributions?
Get in touch with the Coast to Country to discuss how we can help you secure the best outcome for your development.