Local Government: Planning
The question
To ask the Secretary of State for Housing, Communities and Local Government, what steps her Department is taking to help councils use unspent Section 106 contributions.
Answered by Matthew Pennycook
While there are a variety of entirely legitimate reasons why local planning authorities may be holding unspent developer contributions, including to facilitate the effective delivery of phased development projects, we recognise the need to ensure that the contributions that developers make to mitigate the impact of development and make it acceptable in planning terms are used effectively and in a timely manner.
Local planning authorities are expected to use all of the funding received by way of planning obligations. Individual agreements should normally include clauses stating when and how the funds will be used by and allow for their return, after an agreed period of time, where they are not.
The Planning Advisory Service (PAS), funded by the Department, provides support to local planning authorities in the governance of developer contributions.
Any local planning authority that receives a contribution from development through section 106 planning obligations must prepare and publish an Infrastructure Funding Statement at least annually. Reporting on developer contributions helps local communities and developers see how contributions have been spent and understand what future funds will be spent on, ensuring a transparent and accountable system.
The government is committed to strengthening the system of developer contributions to ensure new developments provide necessary affordable homes and infrastructure. Further details will be set out in due course.
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