Developer contributions in the OPDC area

A section 106 agreement is a legal agreement between a local planning authority and a landowner or developer which is entered when planning permission is given. The agreement sets out the obligations the developer must satisfy to mitigate any negative impact that could be linked to the development. These are known as section 106 planning obligations.

Section 106 planning obligations can cover a range of matters such as:

• the amount of affordable housing to be provided
• infrastructure to be delivered
• appropriate financial contributions necessary to support the impact of the development 

Where planning obligations are secured, these must satisfy the three tests that are set out in the National Planning Policy Framework (NPPF). They must be:

• necessary to make the development acceptable in planning terms
• directly related to the development
• proportionate to the scale and type of development being proposed

OPDC adopted the revised Planning Obligations Supplementary Planning Document (SPD) in February 2024. This sets out the range of obligations we will look to secure through section 106 agreements.

Community Infrastructure Levy (CIL) is a levy that can be charged on new development at a set amount per square metre. The levy is charged at a different rate dependent on the type of development.

OPDC adopted the CIL Charging Schedule on 28 February 2024. It comes into effect from 1 April 2024 and will apply to developments given planning approval from this date.

• OPDC Community Infrastructure Levy (CIL) Charging Schedule
• OPDC CIL In kind and Infrastructure Payments Policy

CIL is subject to indexation which allows the rates to be adjusted annually to reflect inflation.

The Annual CIL Rate Summary for 2025 is available here.

OPDC has a CIL Instalment Policy which applies to OPDC CIL and Mayoral CIL payments and requires payment in two instalments:

• CIL payments of <£100,000: payment is due in full within 60 days of commencement.
• CIL payments of £100,000 or more: the greater of £100,000 or half the value of the total amount payable within 60 days of commencement of development the remainder within 240 days of commencement of development

If your development is liable then you will need to complete a Form 1: CIL Additional Information and submit this with your application before we can process it. Further information on this, together with a copy of the form can be found on the Planning Portal website.

The CIL Charging Schedule was subject to an independent examination. The Examiner’s Report recommending adoption can be found on the examination website.

 

Neighbourhood Portion of CIL

We will engage with the local community to agree how best to spend the ‘neighbourhood portion’ of the levy. The neighbourhood portion is 15% of the overall CIL levy charged on development (capped at £100 per dwelling).

Where a development is granted planning permission within the boundary of an area with an adopted neighbourhood plan, the neighbourhood portion is increased to 25%. 

Mayoral Community Infrastructure Levy (MCIL)

In additional to CIL charged by local planning authorities, the Mayor of London also charges a levy on development across London, known as Mayoral CIL (MCIL). Funds raised from MCIL are used to fund strategic infrastructure projects, including Crossrail.