Select committee: Public Accounts Committee
Conclusion 5
46th Report - Improving local areas through developer funding
Published 17 Oct 2025
Addressed to HM Treasury
Public Accounts Committee Improving local areas through developer funding All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
Without updated guidance, local planning authorities will still struggle to challenge financial viability assessments submitted by developers and may fail to receive the amount of developer contributions they are entitled to. Viability assessments are an important tool to ensure that sites are financially feasible for developers and to make sure development takes place. However, there is an asymmetry of skills, capacity and resources between LPAs and developers which means that LPAs often struggle to challenge developers’ claims in viability assessments. The Department acknowledges that existing planning practice guidance on viability needs updating, and states that it will publish reforms to the guidance in 2025. The Department promises that the use of late- stage viability reviews will be considered as part of the wider update of viability guidance. recommendation The Department should ensure that its revised guidance on viability balances the need for site-by-site flexibility in negotiations with the need to dissuade developers from gaming the system. The Department should provide an update on its progress in its Treasury Minute response. 4
From: Public Accounts Committee, 46th Report - Improving local areas through developer funding (HC 886), 17 October 2025
Government response
Latest Treasury Minutes progress report to the Committee of Public Accounts on the Forty-sixth Report of Session 2024-26
The government responded to the whole report on 4 June 2026 (deadline 17 December 2025).
Treasury minutes: Government response to the Committee of Public Accounts on the Forty-sixth report from Session 2024-26
Published 19 January 2026.
Summary written by Accountability Index from the government's response. It is not the government's own words.The government states that it agrees with each of the Committee's recommendations on developer contributions, with target implementation dates ranging from spring 2026 to autumn 2026 and some marked 'Recommendation implemented'.
- On infrastructure funding statements, the department "will therefore explore proportionate and efficient ways of collecting and analysing data from IFSs", with a target date of autumn 2026.
- On local plans, it says it is "committed to taking tough action" and has made clear its "willingness to make full use of available intervention powers", with intervention considered "on a case-by-case basis".
- On viability guidance, it "will be consulting on a revised National Planning Policy Framework before the end of this year" and "intends to publish" updated viability practice guidance alongside it, with a target date of summer 2026.
- On unsold Section 106 homes, it is progressing "a holistic policy package, to be confirmed shortly", with a target date of spring 2026.