Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 5
5
Rejected
Develop and publish Section 106 template clauses to streamline negotiations for local authorities.
Recommendation
As part of the site thresholds consultation that will take place later this year, the Ministry must seek views on how standardised Section 106 templates could most effectively streamline the negotiation process across sites of all sizes. Based on the consultation responses, the Ministry must work with the Planning Advisory Service to develop a suite of Section 106 template clauses and publish these within six months of the consultation closing. Alongside their publication, the Ministry must also update its guidance to local authorities on Planning Obligations to encourage local authorities to adopt these template clauses. (Recommendation, Paragraph 37)
Government response summary AI-generated
The government does not consider it appropriate to fund local plan-making through planning application fees.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Rejected
HM Government · verbatim extract
Rejected
30. 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. 31. 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. 32. 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). 33. 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. 34. 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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