Select committee: Public Accounts Committee
Recommendation 22
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 ↗
Recommendation (the committee's words)
There is an asymmetry of skills, capacity and resources between LPAs and developers that means LPAs often struggle to challenge developers’ claims in viability assessments. Additionally, land values vary significantly across the country, so in some local areas, particularly less affluent areas, developers can argue that sites are not viable. Viability assessments are 28 Qq 44–45 29 Letter from the Permanent Secretary, 9 July 2025 30 C&AG’s Report, paras 2.9, 2.10 31 Letter from the Permanent Secretary, 9 July 2025 13 known to be difficult for LPAs to challenge as they are not transparent, and as a result, LPAs do not know if costs included by developers are realistic and reasonable.32 Sometimes developers will renegotiate their contributions with the LPA in the middle of a development using viability arguments as way to reduce their Section 106 contributions. This should be restricted to exceptional circumstances.
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.