Planning Obligations

Planning obligations [agreements between developers and local planning authorities] will continue to play an important role in helping make individual applications acceptable to local authorities and local communities.

A number of changes have been made by CLG to align the CIL and planning obligations regimes.

The scope of planning obligations in practice has been narrowed since April 2010.  CIL regulation 122, places into law the Government’s three policy tests on the use of planning obligations.  From April 2010 it became unlawful for a planning obligation to be taken into account when determining a planning application if the development is capable of being charged through CIL and the obligation does not meet all of the following tests:

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

For all developments not capable of being charged under the levy, the provisions of Circular 5/05 Planning Obligations continue to apply until a new local policy on planning obligations is approved.

In order to make a development acceptable in planning terms planning obligations can still be used to ensure replacement provision is provided should a development propose the loss of a sporting facility.

Maintenance contributions

Maintenance payments for sports facilities can still be secured, and pooling can still occur, under section 106 agreements in accord with the guidance in Circular 5/05. 

Previously maintenance payments were regarded by CLG as ‘provision not capable of being funded by the levy’. This situation however has changed through the provisions in the Localism Bill which is currently going through Parliament.

Within the Bill, the section on the Use of Community Infrastructure  makes it clear that the Community Infrastructure Levy ( CIL) can be spent on the ongoing costs of infrastructure, as well as the iniital costs of new infrastructure. This will increase flexibility to fund maintenance, operational activity and measure to promote or secure the efficient and effective use of infrastructure.  .

CLICK  HERE for the CLG Practice Guidance on Planning Obligations

CLICK HERE for the latest Government proposals to amend Circular 5/05