Select committee: Public Accounts Committee
Conclusion 21
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)
Viability assessments are financial appraisals submitted to LPAs by developers, that establish whether a site is viable by examining whether the value likely to be generated by the development is more than the cost of developing it, including ‘suitable’ profits for developers. Planning practice guidance states that, for the purposes of plan making and for individual negotiations, a profit margin of 15% to 20% may be considered suitable. Developers can submit a viability assessment alongside their planning application.30 The Department wrote to us after the session, stating that it does not hold any analysis or data on LPAs’ use of the profit margin assumption, because it is important for viability judgements to be informed by engagement between the relevant parties and to reflect local circumstances.31
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.