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Developer contributions

Section 106 Agreements (S106) are legal agreements between a Local Planning Authority (LPA) and the landowner, usually the applicant/developer. The S106 will outline the planning obligations, which the landowner must comply with.

S106 agreements are secured through the planning application process to mitigate specific planning issues and impacts arising from development proposals. They can require developers to pay financial contributions towards infrastructure but can also secure non-financial obligations. For example, providing on-site affordable housing, provide green space, or a park that can be enjoyed by the local community.

Planning obligations are required to meet statutory tests. They must be:

  • Necessary to make the development acceptable in planning terms
  • Directly related to the development
  • Fairly and reasonably related in scale and kind to the development.

The negotiation of a S106 legal agreement is led by a Planning Officer, in discussion with the developer and consultees. There are various consultees the Planning Officer will work with during these negotiations. Some are within the council, such as affordable housing and others are outside of the council, such as Gloucestershire County Council for education and highways.

Planning obligations contained in S106 agreements run with the land to which they relate. As planning obligations run with the land, any outstanding obligations will be transferred with the land if it is sold.

S106 is different from the Community Infrastructure Levy (CIL)

The CIL allows local authorities in England and Wales to raise funds from developers carrying out projects in their area to fund a wide range of infrastructure that is needed to support new development. It does not replace Section 106 planning obligations which continue to be used for affordable housing provision and site-specific mitigation measures which are necessary to make a planning application acceptable in planning terms.

Payments secured under S106 agreements are collected and administered separately to CIL payments. Liability for CIL payments are automatically triggered by the granting of planning permission. Further information can be found on our CIL webpage.

Infrastructure funding statement (IFS)

To increase public awareness of the investment and public goods procured through developer contributions, such as affordable housing, community facilities and other infrastructure, local authorities are required to publish an annual IFS. The IFS must be published on the Council’s website by 31 December each year and include a CIL report, a S106 report and an infrastructure list.

Our Infrastructure Funding Statements are published annually.

Affordable housing

In Tewkesbury Borough, S106 agreements are used to secure affordable housing in accordance with the Tewkesbury borough plan 2011 to 2031. The S106 will confirm if the developer is providing the affordable housing units on site or providing a financial contribution.

When are S106 monies paid

S106 monies are usually paid in instalments at key stages during the construction of a development. The stages at which payments are due are known as ‘trigger points’. The trigger points and the contributions/instalments will be detailed in the S106 agreement.

As developers usually have three years to commence a development once planning permission is granted, it can therefore take a number of years before S106 contributions are received by the Council from the time permission was originally granted. Where a development does not commence at all, the S106 will most likely lapse.

Can I view and obtain copies of the S106 agreement

Yes, you can search for and view electronic copies of completed planning obligations using our Planning Application search facility. Enter the planning application reference number, if known, or the site address.

Monitoring

The Council’s S106 Monitoring Officer will monitor the progress of developments within the Borough. They liaise with developers to ensure we are aware when the triggers identified in the S106 have been reached and obligations are required to be delivered.

Information for Land Owners and Developers

As part of our planning application validation requirements, draft heads of terms are required to be provided when submitting a planning application. Full details of the validation requirements can be found on our planning permission page.

It is vital that all parties understand their obligations so that they know what is required of them and when. It is the developer’s responsibility to let the S106 Monitoring Officer know when specified triggers within the S106 agreement are met. If ownership of the land is transferred, it is important the S106 Monitoring officer is notified.

You can easily update us on the progress of an obligation by emailing s106@tewkesbury.gov.uk

The S106 Monitoring Officer will monitor a development’s progress, and contact developers where updates are required. This is done for both financial and non-financial contributions, to ensure the agreed infrastructure in the S106 is delivered. For financial contributions, invoices are raised with developers once triggers identified in the S106 agreement have been met.

 

Are Section 106 obligations subject to Indexation

Yes, if indexation is required by the S106 agreement then the S106 charges are subject to indexation. The Council will use indices published by the BCIS.

Payment Terms

Strictly 14 days from the date of the Demand Notice.

Late payments

Late payments are subject to interest as outlined in the S106 agreement. This will be calculated for payments received after the 14 days from the date of the Demand Notice.

 

How do I make S106 payments to the Council?

It is the applicant’s responsibility to make payments in accordance with the S106 agreement and to ensure that they are on time. Please contact the S106 Monitoring Officer if you have any questions in relation to the amount due. The most straightforward way to pay, is using the following link:

Payments – Tewkesbury Borough Council

Important: Please ensure the correct invoice reference is used when paying. If you have any queries, please contact the S106 Monitoring Officer using the contact details at the top of the page.