Last edited 08 Jan 2021

Developer contributions


Developer contributions may be required as part of the process of granting planning permission, either where additional infrastructure is required, or to mitigate negative impacts.

These include:

The introduction of the Community Infrastructure Levy was expected to result in the scaling back of Section 106 Agreements.

In December 2018, the government opened a consultation on changes to developer contribution rules intended to speed up housing delivery.

This includes proposals to:

The consultation closed on 31 January 2019.


The government response to the consultation can be seen at:

In June 2019, following the consultation, reforms were introduced requiring that councils report the deals done with developers, and how that money will be spent. Minister of State for Housing Kit Malthouse said: "Communities deserve to know whether their council is fighting their corner with developers – getting more cash to local services so they can cope with the new homes built." In addition restrictions were eased to allow councils to fund single, larger infrastructure projects with contributions from multiple developments.

The government also reported that developers were charged £6 billion in contributions in 2016/17


On 6 August 2020, the government published a white paper, Planning for the future, proposing that the system of charging a Community Infrastructure Levy on developments and imposing planning obligations (Section 106 agreements) should be reformed, to create a nationally set, value-based flat rate charge referred to as the ‘Infrastructure Levy’. For more information see: Infrastructure levy.

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