The council can enter into a Section 106 Agreement with a developer, otherwise known as a planning obligation, when it is necessary to provide infrastructure or community facilities to meet necessary policy requirements and mitigate the impacts of a development.

These can include provision of a range of infrastructure and community facilities such as village halls, green spaces, recreational facilities and sports pitches as well as affordable housing, schools, health centres, libraries, civic amenity, highways and public transport.

What does a Section 106 Agreement require?

The requirements of a Section 106 Agreement will vary according to the size, impact and nature of a proposed development, but they must meet three statutory tests:

  • necessary to make the development acceptable in planning terms;
  • directly related to the development; and
  • fairly and reasonably related in scale and kind to the development.

If a developer offers any unrelated contribution as an inducement that does not meet the three legal tests, planning officers will disregard this when determining the application. 

Section 106 obligations will usually specify what the financial contribution will be used for and when it should be provided. It will generally be expected that infrastructure and services will be provided on the site where development takes place.

However, there may be instances where the developer's payment of a sum of money towards the provision or enhancement of infrastructure or community facilities off-site may be appropriate so long as it serves the development and meets planning regulations.

Our role

We have adopted a S106 developer contributions supplementary planning document which remains a material consideration in determining planning applications.

This is now supplemented by:

Further information is also available on our Community Infrastructure and Funding page.

Local planning authorities across Leicestershire have also agreed a county-wide protocol which sets out how they will deal with requests for Section 106 Planning Obligations as part of the planning application process.

Last updated: Thu 24th June, 2021 @ 10:52