Tests For S106 Agreements

In September 2017, MHCLG launched a consultation on planning for good homes in appropriate locations. In the consultation paper, MHCLG argued that the simplification, acceleration and transparency of cost-effectiveness assessments could lead to better use of the Section 106 agreements. Over the years, several attempts have been made to improve taxation. The most effective and longest is the implementation of agreements under Section 106 of the Town and Country Planning Act 1990 (TCPA 1990), often referred to as “section 106 agreements” or “planning obligations.” TCPA 1990, s 106 allows local planning authorities (LPAs) to obtain both in-kind services from developers when granting building permits in order to make the proposed development acceptable from a planning perspective. Because section 106 agreements are negotiated on a case-by-case basis between the LPA and the landowner, they provide site-specific mitigation measures and address local effects directly related to the magnitude and nature of each development. For example, a Section 106 agreement could require specifically calculated contributions to fund the additional number of primary school places it has created, due to a number of families occupying new residential construction (see: Planning Obligations (Section 106 Agreements) – summary table). This is often reflected in the text of the committee`s report to members, in which the planning officer both confirms that these tests have been verified and sets out the rationale for the commitments. In some cases, applicants may propose obligations that do not pass these examinations. This may be a risky approach, unless there is clear evidence that members were instructed not to consider the undertaking and did not do so when the application was approved. Even under these conditions, the non-compliant obligation may be threatened by a legal remedy. It is not appropriate for planners to set new programming rates for planning obligations in supplementary planning documents or supporting documents, as they would not be reviewed. While standardized or formal evidence may have characterized the identification of needs and costs and the definition of planning policies, the decision maker must ensure that any planning obligations are consistent with the legal controls under Rule 122. This means that when a formal approach to developer contributions is adopted, the levy can be used to address the cumulative effects of infrastructure in an area, while planning obligations are appropriate for financing a project directly related to that specific development.

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