Q&As

In what circumstances is a local authority required to repay a developer their section 106 contributions?

read titleRead full title
Produced in partnership with Sarah Fitzpatrick of Norton Rose Fulbright
Published on LexisPSL on 21/10/2020

The following Planning Q&A produced in partnership with Sarah Fitzpatrick of Norton Rose Fulbright provides comprehensive and up to date legal information covering:

  • In what circumstances is a local authority required to repay a developer their section 106 contributions?

A section 106 agreement is a contract entered into under statutory powers pursuant to section 106 of the Town and Country Planning Act 1990. It must be entered into by deed. It is, nonetheless, a contract between parties and the terms of the contract will govern both the payment and repayment of financial contributions. A developer has no statutory right to repayment of section 106 contributions, so it must be specifically negotiated as a term of the contract.

A section 106 agreement will usually include two principal obligations on a local planning authority (LPA) to repay contributions. These are as follows:

  1. in circumstances where the planning permission has been quashed, revoked, modified or varied (except with the developer’s consent), or has expired prior to implementation/commencement

  2. if the contribution has not been spent or committed for expenditure within X y

Related documents:

Popular documents