Decision details

To ensure the timely payment of contributions and provision of onsite infrastructure, many local planning authorities seek contributions towards the cost of the monitoring of section 106 agreements.

The South Cambridgeshire monitoring fee, approved by the Planning and New Communities Joint PFH meeting^[1] 5 November 2009, was based on the scale of development:

A High Court Judgement dated 3rd February 2015 determined that on straight forward matters (i.e. one off financial payments), securing a s106 monitoring fee would not meet the CIL tests.

South Cambridgeshire District Council continued to secure monitoring contributions, succesfuly defending this at planning appeals, albeit adopting a more refined approach that would typically secure a contribution of either £500 or £1,000 depending on the nature of the application.

Planning guidance now specifically permits local planning authorities securing monitoring fees to cover the associated cost so long as they are proportionate and reasonable and reflect the actual cost of monitoring.

Officers have undertaken a detailed analysis of the time required to administer section 106 agreements and recommend a new set of fees be introduced across Greater Cambridge as follows:

• A fee of £700 for agreements with no payment of contributions, long term monitoring requirement or solicitor enquiries.
• A fee of £2,200 per standard residential development comprising affordable housing, open space and contributions.
• A fee of £500 where the Council is required to confirm compliance of each obligation
• A fee of £250 per each deed of variation or supplemental agreement
• Monitoring fees associated with strategic developments which should continue to be negotiated on a case by case basis.

Around £111,000 can be expected to be received each year to cover the officer costs associated with the administration and monitoring of section 106 agreements (with a further £8,000 for the cost of software) thereby creating a cost neutral position.

Approve.

The fees charged for section 106 monitoring and administration need to be updated to reflect current working practices.

Not applicable.