Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 4
4
Accepted
Strong case exists for Section 106 template clauses to streamline negotiations and reduce workload.
Conclusion
There is a strong case for the introduction of template clauses for aspects of Section 106 agreements across England, as was recommended by the National Audit Office and others. Templates would allow local authorities to focus negotiations on site-specific factors rather than legal wordings. Template clauses would also allow for greater standardisation and clarity of requirements across all local authorities, and in turn reduce the workload of local authorities and Small and Medium-sized Enterprise developers. (Conclusion, Paragraph 36)
Government response summary AI-generated
The government has identified a funding package to support SDS production and expects to make some initial payments in March and to confirm the full package in the summer.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Accepted
HM Government · verbatim extract
Accepted
The Government recognises that negotiating s106 planning obligations can increase costs for LPAs and developers. It is already the case that planning practice guidance on planning obligations encourages LPAs to use and publish standard forms and templates to assist with the process of agreeing planning obligations, for example, through model agreements and clauses. In May 2025, we published a Planning Reform Working Paper on Reforming Site Thresholds which sought views on how s106 negotiations could be streamlined; to improve the process, reduce costs, and increase speed and certainty for SME builders. This included further understanding the specific barriers facing SMEs when agreeing s106 obligations and references to the merits of standardised templates for medium-sized sites. In light of the responses received, we are now seeking views on an updated set of proposals as part of the consultation on the NPPF, published on 16 December 2025 (see Annex C of the NPPF consultation document). The consultation sets out that MHCLG is working in partnership with the Planning Advisory Service (PAS) to develop a suite of resources to support section 106 negotiations, including developing a standardised s106 agreement for medium sites as an immediate priority which would be expected to become the default for applications in the future. This s106 support package will also include training opportunities for LPA officers. Town Legal LLP have been formally awarded the contract following a successful procurement process conducted by the Planning Advisory Service. It is intended that a standardised s106 template for medium sites will be issued as a first priority.
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