There are two main types of developer contributions: Section 106 (planning obligations) and Community Infrastructure Levy, which may be required as part of the process of granting planning permission.

Developer contributions are based upon an established principle that developers should mitigate negative impacts created by the developments they bring forward, or where additional infrastructure is required to support this development. They are intended to make acceptable developments which would otherwise be unacceptable by offsetting the impact by making local improvements. This is usually achieved through planning conditions. However, if this is not possible, developers may be required to enter into legally binding agreements which can include financial compensatory measures to mitigate such impacts. Planning obligations may be undertaken unilaterally by the developer, or by agreements between the developer and the Local Planning Authority. 

Further information on the specific types of developer contributions can be found using the pages above, or the National Planning Policy Framework and Planning Practice Guidance

Section 106

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