Local authorities are not making the most of the planning system to secure road and transport benefits from new developments, according to a report by the Audit Commission.
Cash from developers under section 106 agreements can be used to pay for a range of new infrastructure, including roads, transport schemes and town centre improvements – depending on the size of the project.
However, despite the fact that section 106 agreements are more widely used – Birmingham City Council has received £21M for schemes since 1990 – the commission believes authorities are not making the most of what is on offer. The commission’s report Securing community benefits through the planning process finds there is a widespread variation in what councils gain from the agreements.
Overall, the commission concludes that, in order to operate the system most effectively, councils need detailed policies setting out what they expect to achieve through agreements.
Steve Bundred, chief executive of the commission, said: ‘Councils with weaknesses in their approach to section 106 agreements are less likely to secure community benefits. This report aims to help councils implement effective changes, encourage them to adopt a strategic approach, and to test the financial impacts of their policies on developments.’
But, Gordon Chard, Westminster City Council’s director of planning, feared the report meant the Government would push ahead with plans to replace 106 agreements with a planning gain supplement tax.
He said: ‘The remedy is to work with local authorities to encourage best practice. We are of the view that PGS would remove our ability to directly negotiate substantial benefits for communities in Westminster, as well as remove an element of local accountability in the planning process to the detriment of that process.’