If, for any reason, a developer fails to meet its obligations in an agreement entered into or binding on it under section 106 of the Town and Country Planning Act 1990 (TCPA 1990) (referred to as a planning obligation/section 106 agreement), the relevant local planning Authority (LPA) can take action to enforce the performance of the obligations in the section 106 agreement.

As soon as a developer realises that it is unable to meet obligations in a section 106 agreement it should liaise with the LPA and seek to discharge or modify the obligation. For example, it could seek to reduce or otherwise modify a required contribution or negotiate a later trigger date for payment/Delivery/compliance. See Practice Note: Renegotiating planning obligations/section 106 agreements.

Where this is not possible, and the developer fails to comply with an obligation in a section 106 agreement, the LPA has discretion in deciding whether, and how, to enforce a planning obligation.

There is a general willingness of the courts to enforce section 106 agreements. As was noted in J A Pye (Oxford) Ltd v South