CIL and Section 106s
When will CIL be used?
Once implemented, payment of CIL is mandatory on on all planning applications where the conditions for CIL liability are met.
When will planning obligations be used?
Upon implementation of CIL, the use of planning obligations (Section 106s, or S106s) will be scaled back. However, planning obligations will still be used on applications where are site specific impacts that cannot be addressed through a planning condition.
S106s will be primarily used to deal with affordable housing and with site specific measures which are required to mitigate the impact of development. They may also be used in circumstances where a development proposal results in the loss of an existing facility or site feature, and we require the replacement of that facility/feature either directly by the developer or through a financial contribution set out in a S106.
How will we use planning obligations?
Section 106 monies must be spent in accordance with the wording in the legal agreement. Usually this is for a specific purpose and tied to the area local to a specific development.
We cannot request S106s for anything which is set out in the CIL R123 list.
How will we use CIL?
CIL monies must be spent on infrastructure, but their use is not tied to a specific development or the provision of specific infrastructure. CIL can be spent anywhere within the Borough. Indeed, we can also pass money to bodies outside the area to deliver infrastructure which will benefit the development of the area, such as the Environment Agency for flood defence, or Lancashire County Council for education and transport infrastructure. We are also able to collaborate with others to pool revenue and support the delivery of sub-regional infrastructure.
What will happen with existing Section 106 funds that have already been collected?
These will stay within the Council and must be spent in accordance with the wording in the legal agreement.