Section 106 of the Town and Country Planning Act 1990
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| Section 106 of the Town and Country Planning Act 1990 | |
|---|---|
| Name | Section 106 of the Town and Country Planning Act 1990 |
| Jurisdiction | United Kingdom |
| Enacted | 1990 |
| Related legislation | Town and Country Planning Act 1990 |
| Status | current |
Section 106 of the Town and Country Planning Act 1990 provides the statutory basis for planning obligations attached to land use permissions in England and Wales. It operates within the framework of the Town and Country Planning Act 1990 and interacts with national policy instruments and case law shaping development management. The provision is central to negotiations between local planning authorities, developers and interested parties concerning obligations to provide infrastructure, affordable housing and mitigation measures.
Background and legislative context
Section 106 was enacted as part of the Town and Country Planning Act 1990 alongside reforms introduced under the Thatcher ministry and successive Cabinets, and it followed earlier statutory frameworks such as the Town and Country Planning Act 1947 and the Planning and Compensation Act 1991. The provision must be read in the context of national planning policy instruments including the National Planning Policy Framework and statutory plans produced by local authorities such as Greater London Authority and unitary authorities like Manchester City Council. Implementation has been influenced by judgments from courts including the House of Lords and the Supreme Court of the United Kingdom, as well as guidance issued by the Ministry of Housing, Communities and Local Government and successor departments.
Legal provisions of Section 106
Section 106 permits local planning authorities to enter into agreements or impose unilateral obligations to mitigate the impacts of development. The text empowers collecting authorities such as Camden Council, Bristol City Council and Islington Council to secure contributions for highways improvements near developments like Canary Wharf or schemes in Birmingham. Obligations can require affordable housing provision, contributions to education authorities such as Westminster City Council or transport bodies such as Transport for London, and management of open space linked to places like Hyde Park or Richmond Park. The statutory instrument interacts with planning consents, deeds and land charges processes overseen by the Land Registry and enforced through mechanisms in the Planning and Compulsory Purchase Act 2004.
Purpose and scope of planning obligations
The purpose of Section 106 obligations is to make development acceptable in planning terms by securing mitigation, infrastructure and community benefits. Typical scope covers affordable housing provision consistent with schemes developed in boroughs like Tower Hamlets, highways mitigation for schemes affecting routes such as the M25 motorway, educational provision in localities like Leeds and environmental measures near protected areas including Greenwich Park and Peak District National Park. The obligations have spatial implications for Local Plans prepared by planning authorities including Bristol City Council and strategic authorities such as the Greater London Authority, and financial implications for developers including property companies and institutions like Legal & General and Barclays when negotiating viability.
Procedure for negotiation and enforcement
Negotiation of Section 106 obligations typically occurs during the planning application process handled by planning departments at authorities such as Liverpool City Council and Newcastle City Council and involves applicants, statutory consultees like Historic England and third parties such as registered providers including Peabody Trust. Agreements are recorded as planning obligations and entered on the Land Charges Register and title deeds held at the HM Land Registry. Enforcement may be pursued by local authorities through injunctions in courts including the High Court of Justice and remedies available under the Town and Country Planning Act 1990 and the Planning and Compulsory Purchase Act 2004, with case management involving the Planning Inspectorate for appeals and disputes.
Case law and statutory interpretation
Judicial consideration has clarified the limits and tests for Section 106 obligations, with landmark decisions from courts including the Court of Appeal and the Supreme Court of the United Kingdom. Key principles have been articulated concerning the statutory tests later codified in circulars and guidance from ministers and departments, and have been applied in disputes involving major developers and public bodies observed in cases touching on developments in Birmingham, London and Edinburgh. Courts have addressed issues of reasonableness, nexus and proportionality in a manner akin to jurisprudence from the European Court of Human Rights on property rights, and their reasoning has influenced guidance issued by the National Planning Policy Framework and advice from the Local Government Association.
Criticisms, reforms and policy developments
Section 106 has attracted critique from campaign groups, local authorities and industry bodies such as the Royal Institution of Chartered Surveyors and the Royal Town Planning Institute for complexity, unpredictability and impacts on viability for projects backed by institutional investors including Aviva Investors and Zurich Insurance Group. Reforms have been pursued through statutory changes including the introduction of the Community Infrastructure Levy and amendments under the Localism Act 2011, and policy developments continue under ministries such as the Department for Levelling Up, Housing and Communities. Ongoing debates involve balancing developer contributions against housing delivery targets like those in Camden, Bromley and Sheffield, and proposed reforms are scrutinised by select committees of the House of Commons and stakeholders including planning consultancies and charities such as Shelter.