Surcharge option to avoid section 106 talks

Developers could pay a surcharge rather than waste time negotiating section 106 agreements with local authorities.

Planning minister Keith Hill has proposed the optional charge. Local authorities could spend the money on new community facilities, infrastructure improvements or affordable homes.

Currently local authorities and developers negotiate section 106 agreements where the developer agrees to add something extra to the proposed development, for example affordable housing units or a new bus stop. However, this negotiation can be lengthy.

Local authorities would have set out details of the charge (eg. £ per unit of housing or per square metre of retail floorspace) in their local development plans.

Hill said: "The new optional charge... will give developers a choice. If they wish to negotiate a traditional section 106 agreement, then they can. But if they want greater speed and certainty they can pay the charge, leaving them free to get on with things."

The proposal is out to public consultation until 8 January 2004.