What is a Section 106 agreement
Section 106 (S106) Agreements are legal agreements between Local Authorities and developers; these are linked to planning permissions and can also be known as planning obligations.

Section 106 agreements are drafted when it is considered that a development will have significant impacts on the local area that cannot be moderated by means of conditions attached to a planning decision. For example, a new residential development can place extra pressure on the social, physical and/or economic infrastructure which already exists in a certain area.

A Planning obligation will aim to balance the pressure created by the new development with improvements to the surrounding area ensuring that, where possible, the development would make a positive contribution to the local area and community.

For further information on Planning Obligations, please visit Community Infrastructure Levy & Developer Contributions Guidance

What will be covered within the Section 106?
When a planning application is submitted to the Council, we will assess the application as to whether the development would cause a significant impact to the area and community and thus if a S106 agreement is needed. 

How are planning obligations determined?
S106 agreements are not standardised. The Council will work with the developer to reach an agreement which is tailor-made specifically for each case. This is usually done over a period of time and by negotiation. Often the draft details are agreed prior to the decision being made and then confirmed in detail afterwards. The decision on a planning application will not be released until the S106 agreement is signed.
 

What the legislation and guidance say about planning obligation monitoring fees

Regulation 122 (2A) of the Community Infrastructure Levy (CIL) Regulations 2010 (as amended) permit local authorities to charge a fee for monitoring and reporting on planning obligations.  The Regulation 122 tests do not apply in relation to a planning obligation which requires a sum to be paid to a local planning authority in respect of the cost of monitoring (including reporting) provided:

•    the sum to be paid fairly and reasonably relates in scale and kind to the development, and
•    the sum to be paid to the authority does not exceed the authority’s estimate of its cost of monitoring the development over the lifetime of the planning obligations which relate to that development.
 

Cannock Chase Council monitoring fee

From 1 April 2025, Cannock Chase Council will charge fees for the monitoring of S106 Agreements.  The charges are as follows:-

-         A 5% fee charged for each planning obligation capped at £20,000.

-         A £900 fee charged per non-financial obligation, subject to an officer assessment.

-         £500 fee charged for each additional and/or amended obligation in a Deed of Variation subject to an officer assessment.

There will also be a late Section 106 surcharge equal to 2.5% or £500, whichever is the greater amount, charged against all S106 invoices that are not paid by the due date.

The monitoring fee is to be paid at completion of the s106 legal deed, to enable the council to cover the costs of monitoring the commencement of development or other pre commencement triggers. The fee will be periodically reviewed to ensure the administrative costs associated with monitoring and managing developer contributions are covered by the fee.

Cannock Chase Council monitoring and reporting activities

Cannock Chase Council undertakes a number of monitoring activities in relation to planning obligations including:

•    data entry and maintenance of planning obligations database
•    monitoring of trigger points for obligation actions and for receiving payments
•    site visits, as required
•    monitoring financial obligation time limits and spend
•    calculation of indexation and interest applied to planning obligations
•    processing of s106 invoices and payments
•    chasing unpaid invoices
•    arranging bank transfer of financial obligations
•    gathering and recording of spend data evidence
•    reviewing projects to comply with legal obligations
•    regular reporting and production of the s106 Report, Infrastructure List and Infrastructure Funding Statement
•    responding to S106 Agreement queries

Cannock Chase Council's monitoring fee is based on an estimated number of planning obligations managed by the council annually, the percentage of officer time spent on the above activities per obligation and trigger.  Planning obligations will require some degree of the above activities even if they are triggered prior to commencement, therefore the approach ensures that the monitoring fee is fair and reasonable.