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Section 106 Agreements

Volume 456: debated on Wednesday 7 February 2007

To ask the Secretary of State for Communities and Local Government how much was raised for community infrastructure projects by section 106 agreements in each local authority in the last period for which figures are available; and what percentage of total capital projects this represented in each such authority. (118202)

[holding answer 2 February 2007]: Information on individual section 106 agreements in England is held by local planning authorities and not collected centrally. The Town and Country Planning (General Development Procedure) (Amendment) (England) Order 2002 (Statutory Instrument 2002 no. 828), which came into effect on 1 July 2002, requires details of planning obligations to be recorded in both Parts I and II of the local planning authority’s planning register, which should be available for public reference. Responsibility for s106 agreements in Wales rests with the Welsh Assembly Government. The Town and Country Planning (General Development Procedure) (Amendment) (Wales) Order 2004 (Welsh Statutory Instrument 2004 no. 1434 (W.147)), which came into force on 1 September 2004, similarly requires details of planning obligations to be recorded on Parts I and II of the local planning authority’s register.

To ask the Secretary of State for Communities and Local Government (1) what steps she has taken to encourage local authorities to make the infrastructural investments agreed under section 106 agreements with developers; and what the total value is of revenues collected under section 106 agreements that have remained unspent over the past five years; (118457)

(2) what information is collected by the Government offices for the regions on the uses to which local authorities put revenues collected from developers under section 106 agreements.

In May 2006 Communities and Local Government produced guidance for local authorities (in “Planning Obligations: Practice Guidance”) on ensuring the effective implementation and monitoring of agreements made under section 106. The guidance supports policy in ODPM Circular 5/05. The Planning Advisory Service has also produced and disseminated a good practice case study highlighting the need for effective monitoring and implementation of planning obligations contributions, drawing on the experience of Colchester borough council. Copies of both these documents are available in the House Library

The Government do not hold information on the total value of revenues collected under s106 agreements that remain unspent. Information on individual section 106 agreements in England is held by local planning authorities and not collected centrally. The Town and Country Planning (General Development Procedure) (Amendment) (England) Order 2002 (Statutory Instrument 2002 No. 828), which came into effect on 1 July 2002, requires details of planning obligations to be recorded in both parts I and II of the local planning authority’s planning register, which should be available for public reference. Responsibility for s106 agreements in Wales rests with the Welsh Assembly Government. The Town and Country Planning (General Development Procedure) (Amendment) (Wales) Order 2004 (Welsh Statutory Instrument 2004 No. 1434 (W.I47)), which came into force on 1 September 2004, similarly requires details of planning obligations to be recorded on parts I and II of the local planning authority’s register.

To ask the Secretary of State for Communities and Local Government if she will review the appropriateness of the rule that permits developers to be exempt from section 106 agreements in circumstances where they provide fewer than 15 units on a site; and whether she has discussed this rule with the National Housing Federation. (112238)

The Government have not set minimum thresholds for the size of development to which section 106 agreements should apply. Circular 05/2005 requires local planning authorities to consider each development on its merits.

In the case of affordable housing, Planning Policy Statement 3 (PPS3) sets a national indicative minimum site size threshold of 15 dwellings and it makes clear that local planning authorities can set lower minimum thresholds where viable and practical. PPS3 was published in November 2006, following extensive consultation, including with the National Housing Federation.