Who gains? The operation of section 106 planning agreements in London

Who gains? The operation of section 106 planning agreements in London PDFWho gains? The operation of section 106 planning agreements in London RTF

Over the next decade, London boroughs will be paid as much as £1 billion by developers, and hundreds of millions more in terms of “in kind” payments through Section 106 agreements. These agreements oblige developers to fund community benefits such as transport improvements, school places and security measures that are needed as the result of new developments. While borough performance in negotiating these agreements is improving, there is still work to do. The Committee found a combination of inadequate negotiation skills, high staff turnover and lack of clear guidelines for developers means some boroughs secure substantially fewer community benefits than they should.

Among its recommendations, the report calls for ring fencing some of the money that is negotiated through the planning agreements. This would allow universities to set up a formal qualification with training specifically aimed at improving section 106 skills. In addition, a system could be set up so that all boroughs could access the local authority planners, valuers and lawyers with the widest range of skills and experience across the capital to match the expertise of the developers in negotiations.