Section 106 of the Town and Country Planning Act 1990 allows a local planning authority to enter into a legally binding agreement or planning obligation with a developer in association with the granting of planning permission.
Section 106 agreements are used when it is considered that a development will have negative impacts that cannot be dealt with through conditions in the planning permission. They may require the developer to undertake particular works or provide specific services. Alternatively, they could involve the payment of a financial contribution, also known as a ‘commuted sum', to the city council to deliver agreed works, services or maintenance.