Home Business and economy Section 106 (S106) agreements and what they mean for Knowsley
For the record

Section 106 (S106) agreements and what they mean for Knowsley

by Gemma Melling

Since 2010, 6765 new homes (of which, 1608 are affordable homes) have been built in Knowsley as part of the Council’s Growth Strategy.

With each new ‘large’ housing development, the Council negotiates with developers to agree a S106 agreement. These legal agreements set out financial contributions or agreed works will be made in a local area, by the developer, as the developments are completed.

From 1 April 2021 to the end March 2022 more than £28 million has been received, agreed or spent through S106 agreements in Knowsley.

What are S106 agreements?

S106 agreements are legal agreements between local authorities and developers, linked to planning permissions. They are drafted and agreed when it is considered that a development (usually because of its size / number of homes) will have a significant impact on the local area.

S106 agreements set out specific projects and areas of investment in local infrastructure and facilities that will accommodate new residents and ensure current residents are not detrimentally impacted in terms of access to facilities in their local area.

Who does S106 money belong to?

S106 contributions are made by developers (private companies) and handed over to the local authority. Often the contributions are made in instalments as developments are completed / progressed.

S106 are not Council funds but are held by the Council to deliver specific projects that have been agreed as part of the planning process for the benefit of the community.

What can S106 agreements fund?

There are specific rules, set out in national policy that determine what S106 contributions can be collected for.

The need for a S106 will vary depending on the nature of the development and its impacts. The most common obligations include:

  • Highway infrastructure
  • Public Open Space, delivery, and future maintenance
  • Off-site tree planting and ecological mitigation
  • Delivery of Social Value
  • Provision of infrastructure to provide additional school places
  • Provision of infrastructure to allow for GP capacity
  • Town centre Improvements
  • Affordable Housing

How do you decide what how the money is spent / allocated?

They can only be spent on facilities where the new development has, at least in part, contributed to the need for new infrastructure or facilities. For example road improvements, enhancements to green space etc.

The content of the S106 agreement is agreed between the local planning authority and the applicant when the planning application is being considered by the council.

Where can I find information about Section 106 agreements in Knowsley?

The Council publishes an annual Infrastructure Funding Statement (IFS) which provides a summary of all financial and non-financial developer contributions relating to S106 agreements.

In summary, the report provides:

  • an overview of s106 agreements
  • the s106 contributions paid to the council in the reported year
  • the s106 contributions spent in the reported year
  • s106 contributions secured for future years
  • projects delivered in the borough via s106 in the reported year

You can download the latest Council’s Infrastructure Funding Statements:

S106 Infrastructure Funding Statement 2021 – 2022 
S106 Infrastructure Funding Statement 2020 – 2021
S106 Infrastructure Funding Statement 2019 – 2020 

 Copies of every S106 agreement can be viewed on the Council’s website. Simply visit the public access site and search for the linked planning application.

Further information on the Council’s requirements for S106 planning obligations are set out in the Council Developer’s Contributions Supplementary Planning Document (SPD).