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Planning obligations (also known as section 106 agreements of the Town and Country Planning Act 1990) are private agreements made between local authorities and developers or undertakings offered unilaterally by a developer and can be attached to a planning permission to make acceptable development which would otherwise be unacceptable in planning terms.
Such obligations can prescribe the nature of development (for example, requiring a given portion of housing is affordable), compensate for loss or damage created by a development (for example, loss of open space), or mitigate a development's impact (for example, through increased public transport provision). Planning obligations should be directly relevant to the proposed development.
On 25 March 2010, we published a consultation document seeking views on a new policy document on the use of planning obligations. In its final form, this policy document is intended to replace Circular 05/05: Planning Obligations and form an annex to the new Development Management Planning Policy Statement on which the Government launched a consultation on 21 December 2009.
