Property Development: Infrastructure

(asked on 26th March 2026) - View Source

Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, what assessment he has made of the adequacy of the time taken to finalise infrastructure agreements for residential planning permissions.


Answered by
Matthew Pennycook Portrait
Matthew Pennycook
Minister of State (Housing, Communities and Local Government)
This question was answered on 24th April 2026

Developers may be asked to provide contributions for infrastructure in several ways. Planning obligations, in the form of S106 agreements, should only be used where it is not possible to address unacceptable impacts through a planning condition.

The government is aware that the negotiation of S106 agreements can create delays in the planning process and increase costs for developers and local planning authorities. As per the Written Ministerial Statement made on 28 January 2026 (HCWS1286), the government intend to work closely with local planning authorities, registered providers and developers to deliver a series of measures that will provide for a simpler, more transparent and more resilient S106 system. These include a standardised template S106 agreement to speed up the process of drafting and concluding new S106 agreements.

Section 278 agreements may also be required where developers need to carry out essential highways improvements to facilitate their projects. It is important that both developers and highways authorities engage early on the works needed to support development proposals to ensure timely decisions

The Community Infrastructure Levy (CIL) is a charge which can be levied by local authorities on new development in their area. The levy only applies in areas where a local authority has consulted on, and approved, a charging schedule which sets out its levy rates and has published the schedule on its website. Where CIL is in place for an area, charging authorities should work proactively with developers to ensure they are clear about the authorities’ infrastructure needs. My Department’s published guidance on CIL can be found on gov.uk here.

Any local planning authority that receives a developer contribution through CIL or S106 planning obligations is required to publish an Infrastructure Funding Statement at least annually, ensuring a transparent and accountable system.

To support local planning authorities in negotiating and concluding agreements in a timely manner, the government is investing in their capacity and capability. At the Autumn Budget 2024, the Chanceller announced a £46 million package of investment into the planning system as a one-year settlement for 2025-2026. At the Budget on 26 November 2025, the Chancellor announced a further £48 million of investment over three years to support local planning authorities to attract, retain and develop skilled planners over a sustained period.

Of this, £28.8 million has been allocated to MHCLG’s Planning Capacity and Capability Programme, equating to £9.6 million additional per year for the next three years. This allocation will supplement existing budgets. This funding supports the recruitment of new planners and targeted skills development through the Planning Advisory Service, helping local authorities manage S106 and CIL processes effectively and accelerate infrastructure delivery.

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