Information on Section 106 and Community Infrastructure Levy
The Government viewed S106 as providing only partial and variable response to capturing funding contributions for infrastructure. As such, provision for the Community Infrastructure Levy (CIL) is now in place in the 2008 Planning Act.
In terms of developer contributions, the Community Infrastructure Levy (CIL) has not replaced Section 106 agreements, but the introduction of CIL resulted in a tightening up of the s106 tests.
S106 agreements, in terms of developer contributions, should be focused on addressing the specific mitigation required by a new development. CIL has been developed to address the broader impacts of development.
There should be no circumstances where a developer is paying CIL and S106 for the same infrastructure in relation to the same development.
The balance between the use of S106 and CIL will be different depending on the nature of the area and the type of development being undertaken.
There is further guidance on the balance between s106 and CIL set out in the CIL Guidance below.