
On Friday The London Assembly’s planning and spatial development committee published a report on the use of Section 106 Agreements …. so we thought we would take a look at it for you.
Key points:
- The planning system is designed to balance development with the economic, social and environmental effects on the wider community. Section 106 (S106) of the Town and Country Planning Act 1990 ensures local authorities can acquire contributions from developers to both secure the infrastructure needed to support their new development(s) and also to mitigate the impact of the development. These contributions can be both financial contributions and also benefits in kind.
- Direct financial payments to London boroughs could exceed £1 billion in the next ten years with hundreds of millions more in terms of ‘in kind’ benefits such as new affordable homes, improvements to the public transport network and new open spaces provided directly by developers themselves.
- The LA review has found that developers generally support having to contribute to ‘mitigate’ the effects of their proposals. But, they also need to be clear what is likely to be expected of them at an early stage of the process – and even before they apply for planning permission – to calculate whether their development can be viable.
- The skills and resources of the local authorities and their staff involved in negotiating S106 are hugely important, yet one third of boroughs do not think they have enough staff devoted to S106. This problem is compounded by high staff turnover, which is increasing, and means that experience is lost to the organisation: Boroughs need to have not only staff with adequate skills to negotiate S106 – they need to have enough of them devoted to this particular aspect of the planning process.
- The LA recommend that boroughs and universities set up some form of formal post qualification and training specifically aimed at improving S106 skills.
- The LA also recommend the boroughs and Mayor think about pulling together those local authority planners, valuers and lawyers who already have the widest range of experience of the most complex planning agreements and making their skills available to the rest of London when they are needed.
- The LA feels there would be merit in ring fencing some of the S106 monies to direct towards training for planning officers in negotiation skills: Ultimately this could be self-financing if better skilled staff were able to lever in more S106 funds as a result of better training and skills.
- Outside the professionals there is an important role for the local councillor and the communities that they represent. They are the ones who should be aware of potential applications that may have negative impacts for their local area. They should also be involved in developing priorities for any money that S106 may generate and making sure that agreements are upheld and the money is spent.
- Government guidance quite clearly states that councillors and communities should be more involved in devising policies for managing planning obligations through Statements of Community Involvement.
- Boroughs must do more to ensure that councillors and the community have sufficient knowledge of the S106 process and the available information about what is going on. There must be a policy that is in place and clearly communicated to the community that makes the process transparent and accessible for those who want to be involved.
- Boroughs should prioritise the monitoring of S106 agreements. They should also make available, in a simple and accessible format, all details of signed S106 agreements along with the regular monitoring reports of how those agreements are being implemented.
- From now on it is not just the boroughs in London that will decide planning applications and negotiate S106 agreements. The GLA Act 2007 gives the Mayor new planning powers that will allow him to take over and determine small numbers of applications that have potential strategic importance for London. Details of these planning powers are still being finalised but it is expected that they will come into effect in April 2008.
- While there has been no formal statement from the Mayor about exactly how he will exercise his new planning powers, including his policy and priorities for S106 negotiations, the Committee expects the Mayor to act in a way that reflects our calls for boroughs to increase transparency and accountability throughout the process.