New development charge offers section 106 alternative

Nov. 6, 2003
Housebuilders will have the option of paying a charge instead of entering into lengthy section 106 agreement negotiations with local authorities, under proposals put forward by planning and housing minister Keith Hill. “We need a radical solution to simplify and speed up the process,” said Hill. “This new optional charge is the solution. It will give developers a choice. If they wish to negotiate a traditional section 106 agreement then they can. But if they want greater speed and certainty they can pay the charge, leaving them free to get on with things and the local authority the resources to spend on community projects – green travel plans, education facilities or road improvements. That’s good news all round.” The charge will be set out by local authorities in their development plans, and will be payable per unit of housing or sq.m of retail floorspace. The draft document, “Contributing to Sustainable Communities – a new approach to planning obligations” is out for public consultation until January 8 2004. It is available on the ODPM website.

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