Section 106 planning obligations are legally binding agreements made to mitigate the impacts of a proposed development. These obligations are an essential part of the planning system, ensuring that developments contribute positively to their surrounding area and address specific concerns that arise as a result of their implementation.

All contributions under Section 106 must adhere to the three statutory tests set out in regulation 122 of the Community Infrastructure Levy (CIL) regulations. Any contribution must be:

• Necessary to make the development acceptable in planning terms;
• Directly related to the development; and
• Reasonable in scale and kind.

Ultimately, the responsibility for determining whether a planning obligation is necessary to make a development acceptable lies with the local planning authority – including any obligation around to apprenticeships and skills.

Current planning practice guidance encourages local planning authorities to facilitate the process of agreeing planning obligations by using and publishing standard forms and templates. These resources may include model agreements and clauses, some of which have already been published by other organisations. Making these documents publicly available assists both authorities and applicants during the planning application process.

Guidance additionally states that policies regarding planning obligations should be clearly set out in local plans and subject to public examination, ensuring transparency and consistency in their application.