Section 106 (S106) planning obligations are legal agreements between the council and landowners/developers. They ensure that new developments contribute to the infrastructure, facilities, and services needed to support local communities. 

S106 obligations may include financial contributions, delivery of onsite works, or the provision of affordable housing. The planning service monitors these obligations to ensure they are met in accordance with the agreement. 

How the Council manages financial contributions 

As part of some Section 106 agreements, landowners/developers are required to make financial contributions towards local infrastructure or community projects. 
In relation to this, the council is responsible for: 

1. Holding and Administering Funds 

All financial contributions are received and securely held by the council. These funds can only be used for the purposes set out in the relevant legal agreement. 

2. Allocating Funds to Specific Projects 

Some contributions are linked to very specific projects—for example: 

• Expanding a named school
• Providing a particular junction improvement
• Delivering a specified play area 

Other contributions are more general in scope, such as: 

• Cultural wellbeing and public art
• Offsite open space improvements
• Community facilities within the vicinity of the development 

3. Ensuring Timely and Appropriate Spend 

The council is required to monitor the contributions it holds and ensure funds are: 

• Used only for the purpose for which they were secured
• Released to the appropriate teams, services, or external organisations
• Spent within the timescales specified in the S106 agreement (often referred to as “clawback periods”) 

This ensures that local communities benefit from the development in a timely manner. 

Tracking developer contributions received by Milton Keynes City Council 

Each Section 106 (S106) agreement includes specific “trigger points” that set out when a developer must make specified financial contributions. These triggers are usually linked to stages of development, such as the commencement of works, a certain number of dwellings being occupied, or the completion of a particular phase. 

Monitoring trigger points 

As a development progresses, the council actively monitors it to identify when each trigger is reached. This ensures that payments are requested and received at the correct time, in line with the legal agreement. 

Receiving and holding contributions 

Once a developer makes a payment, the funds are received and securely held by Milton Keynes City Council. These monies must be used only for the purpose specified in the S106 agreement, and the council is responsible for ensuring that contributions remain available and are allocated correctly. 

Viewing S106 contributions online 

Information about all S106 agreements monitored by the council—including details of financial contributions received, how much remains available, and what each contribution is intended for is publicly accessible. 

You can view this information through the Public Facing Module of the Council’s Exacom system. 

Planning and programming the use of developer contributions 

The majority of developer contributions are secured to support the delivery of Milton Keynes City Council plans and strategies (such as education, transport and highways, communities and leisure, culture, public realm), or statutory services that the Council must deliver (like waste). It is also the Council that is obligated in the legal agreement to secure the lawful use of contributions. The Council will therefore oversee the use of all contributions. 

The Council has a standard method of planning and delivering projects, controlled by a number of programme boards. The programme boards monitor monies received and programme its use to specific projects, which might include; 

• delivery by Milton Keynes City Council itself; or
• delivery by another body (for example a town or parish council). 

Where contributions have been specifically secured for a body other than Milton Keynes Council (such as for health, emergency services voluntary sector organisations, or Town and Parish councils), then these bodies will plan and programme the use of the monies. 

Funding requests from third parties 

Any other organisation with an interest in using developer contributions can make an enquiry. The process for the release of funds will be administered by the Council’s Planning Service once requested by the relevant Council service or other relevant organisation. 

Monitoring and Accountability 

To ensure transparency and effective use of developer contributions, the council follows national reporting requirements and maintains robust internal monitoring systems. 

Infrastructure Funding Statement (IFS) 

Since December 2020, all local authorities have been required to publish an annual Infrastructure Funding Statement (IFS). This report provides a clear breakdown of: 

• Developer contributions received within the financial year (April–March)
• Contributions that have been allocated or spent
• The types of infrastructure and projects funded through S106 obligations 

Any council service, external organisation, or community group that has received developer funding for a project must report back to the Planning Service. This ensures that accurate information is included in the annual IFS and that the use of funds can be properly monitored. 

Exacom monitoring system 

The council uses a dedicated monitoring platform called Exacom to manage Section 106 obligations. Exacom provides: 

• Up to date records of individual S106 agreements,
• Details of financial contributions received, allocated, and spent,
• Clear tracking of obligations within legal agreements,
• Public access to non-confidential information through the online Public Facing Module. 

This system helps ensure that developer contributions are used appropriately, transparently, and in accordance with the legal agreements.