Developer contributions

Developer contributions may be required as part of the process of granting planning permission, either where additional infrastructure is required, or to mitigate negative impacts.

These include:

• The Community Infrastructure Levy: Introduced in 2010 to allow local planning authorities to raise funds from new development to help fund infrastructure to support the development of their area. For more information see: Community Infrastructure Levy.
• Section 106 Agreements: Negotiated between local authority and developer on a case by case basis to mitigate or compensate for the negative impacts of a development or to prescribe the nature of a development. For more information see: Section 106 Agreements.

The introduction of the Community Infrastructure Levy was expected to result in the scaling back of Section 106 Agreements.

In December 2018, the government opened a consultation on changes to developer contribution rules intended to speed up housing delivery.

This includes proposals to:

• Introduce a new strategic infrastructure tariff, helping fund large-scale projects which benefit multiple communities falling under a combined local authority.
• Widen options for how contributions can be used by councils to benefit their residents, ensuring funds are spent on a wider range of local priorities.
• Increase certainty and transparency by requiring councils to publish details about what has been collected and spent, so communities understand the benefit of development.
• Ensuring the Community Infrastructure Levy responds to changes in land values, so towns and villages get appropriate contributions when planning permission is granted.

The consultation closed on 31 January 2019.

Ref https://www.gov.uk/government/news/plans-to-speed-up-new-homes-held-up-with-new-developer-contribution-rules

The government response to the consultation can be seen at: https://www.gov.uk/government/consultations/developer-contributions-reform-technical-consultation

In June 2019, following the consultation, reforms were introduced requiring that councils report the deals done with developers, and how that money will be spent. Minister of State for Housing Kit Malthouse said: "Communities deserve to know whether their council is fighting their corner with developers – getting more cash to local services so they can cope with the new homes built." In addition restrictions were eased to allow councils to fund single, larger infrastructure projects with contributions from multiple developments.

The government also reported that developers were charged £6 billion in contributions in 2016/17

Ref https://www.gov.uk/government/news/communities-to-benefit-from-new-housing-infrastructure-rules

On 6 August 2020, the government published a white paper, Planning for the future, proposing that the system of charging a Community Infrastructure Levy on developments and imposing planning obligations (Section 106 agreements) should be reformed, to create a nationally set, value-based flat rate charge referred to as the ‘Infrastructure Levy’. For more information see: Infrastructure levy.

[edit] Related articles on Designing Buildings Wiki

• Affordable housing.
• Community infrastructure levy.
• Community infrastructure levy commencement notice.
• Economic viability.
• Localism act.
• Planning permission.
• Planning conditions.
• Planning obligations.
• Review announced of the Community Infrastructure Levy.
• Section 106 agreement.
• Section 106 exemption.
• Strategic infrastructure tariff.
• The Community Infrastructure Levy (Amendment) Regulations 2014.