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<p>It is for the local planning authority to determine what is required and seek planning
obligations through a Section 106 agreement in order to make a development acceptable
in planning terms. There are three statutory tests that need to be applied when considering
a planning obligation, that it is: necessary to make the development acceptable in
planning terms; directly related to the development; and fairly and reasonably related
in scale and kind to the development.</p><p>Developers may be asked to provide contributions
for infrastructure in several ways. This may be by way of planning obligations in
the form of Section 106 agreements but can also include contributions through payment
of the Community Infrastructure Levy and Section 278 highway agreements.</p><p>It
is for local planning authorities to decide what provisions they make in Section 106
agreements, and agree these with the interested parties, and therefore any liabilities
would depend on the individual agreement. Local authorities and developers can renegotiate
planning obligations by mutual agreement at any time or under Section 106A of the
Town and Country Planning Act 1990. However, Local planning authorities are expected
to use all of the funding they receive through planning obligations in accordance
with the terms of the individual planning obligation agreement. This is to ensure
that new developments are acceptable in planning terms; benefit local communities
and support the provision of local infrastructure.</p>
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