REALWorld Law

Planning / zoning

Statutory agreements

As well as obtaining a permission, is it possible or necessary to enter into agreements with local or governmental authorities or agencies or with utility suppliers in order to facilitate the carrying out of development?

UK - England and Wales UK - England and Wales

UK - England and Wales

Yes, some forms of development will require the entering into of a planning obligation (also known as a 'section 106 agreement') under which the developer agrees to do certain things or make specified payments to mitigate the effects of the development.

Other agreements that may be required include:

  • section 38/278 Highways Act 1980 agreements relating to the provision of new highways or works to existing highways, and
  • section 104 Water Industry Act 1991 agreements relating to the delivery of new drainage infrastructure.

There is also a system of financial levy available to local planning authorities to obtain funds from developers upon implementation of planning permission to be applied towards local infrastructure improvements. This system ("the Community Infrastructure Levy") is being adopted by a number of planning authorities and replaces some payments made under a section 106 agreement.