Growing:MK Planning Obligations
What are Planning Obligations?
Under national Planning regulations the Council can ask a developer to contribute towards providing infrastructure (these are called Planning Obligations). These obligations are contained in legally binding agreements, often referred to as Section 106 or S106 Agreements (after the relevant section in the Town and Country Planning Act). There are rules around what sort of contribution we can ask for and we need to clearly show why we are asking for something and be prepared to defend it.
Planning obligations assist in mitigating the impact of development to make it acceptable in planning terms. Planning obligations may only constitute a reason for granting planning permission if they meet the tests that:
- They are necessary to make the development acceptable in planning terms;
- Directly related to the development; and
- Are fair and reasonable in scale and kind to the development.
Why are they necessary?
These contributions help to provide the infrastructure required to mitigate the impact of new development, making it acceptable when it otherwise may have been unacceptable.
How are they decided?
In most parts of the Borough we negotiate planning obligations with developers, considering our relevant policies, legislation, the specific needs of the community and planning requirements.
We have also agreed a tariff-based infrastructure obligation with developers in the ‘expansion areas’ of Milton Keynes. The Tariff secured a commitment from landowners and developers within the Expansion Areas (where 15,000 dwellings will be accommodated) to Section 106 contributions in excess of £310m (at 2005 values), based on a standard tariff charged for each home and each square metre of employment floor space. With approval from HM Treasury, MKC is now acting as banker providing advance funding where required for roads, education, health, community services, parks and attracting inward investment, amongst a range of 18 portfolios, maintaining infrastructure investment in tandem with new homes. You can find more information in the Local Investment Plan.
Section 106 funding for projects
The current S106 spreadsheet (XLSX, 105KB) details funds that the Council currently holds and what those funds are identified for in the associated legal agreement. The spreadsheet is searchable by parish and ward area.
Please note: the spreadsheet indicates the position of individual agreements at the date it was uploaded (monthly). If you are seeking to apply for section 106 funding for a project please be aware of the current S106 Spending Guidance (PDF, 48KB).
To obtain approval for funding a S106 Release Form (DOC, 73KB) is required.
Some monies shown in the latest S106 spreadsheet may be already earmarked for projects so please ensure you discuss your specific requirement with the Milton Keynes Planning Obligations Team (email@example.com) before committing to or incurring any expenditure.
Community Infrastructure Levy (CIL)
The Community Infrastructure Levy is the Government’s preferred mechanism for funding strategic infrastructure investment from development. It is similar to the Milton Keynes Tariff in the sense that it levies a standardised charge towards infrastructure from new development. For more details on the principles that sit behind CIL please see the Government’s guide here.
Currently Milton Keynes Council does not operate a CIL but regularly reviews this position.
Last Updated: 14 August 2019