Developer contributions

Development Viability

Policy 12 of the Local Plan Part 2 confirms that in setting the level of any financial contribution, the Council will take into account the total contribution liability incurred by developments arising from all policy and site specific requirements. Its objective will be to ensure that the overall level of contribution required will allow developments to remain viable, wherever this is compatible with securing essential works that are fundamental to the acceptability of the proposal.

Furthermore, Policy 7 sets out how the Council will work proactively with developers to identify ways in which their schemes can be made financially viable.

Where a developer seeks to negotiate a reduction in standards that would normally apply to development, or a form of development that would not normally be acceptable, on grounds of financial viability, the Council will require the developer to supply evidence as to the financial viability of the development. This will normally take the form of an open book financial appraisal of the proposed development, demonstrating the full range of costs to be incurred by the development including the initial purchase of the land, the financial return expected to be realised, and the profit expected to be released. The level of detail required in such an appraisal will always be proportionate to the scale and complexity of the development proposed.

Further guidance can be found on the GOV.UK website.

Viability Appraisals which are submitted with planning applications in order to negotiate a reduction in contributions will be independently assessed, with costs borne by the applicant.

The following fees for reviews of viability appraisals apply from 1st April 2021:

Section 106 Viability Appraisals
Appraisal type Fee
Number of Units 1-24 £2,000
Number of Units 25-99 £2,800.00
Number of Units 100-400 £3,800.00
Number of Units 400+ £4,800.00
Non-residential £3,200.00

Following the independent assessment, any further advice required from the Councils appointed Viability Consultant would be charged at a cost of £185 per hour (at the applicants cost).

In assessing the information supplied in a financial appraisal, the Council will always seek to ensure that its decision represents the appropriate balance between the desirability of securing early delivery of the development, and that of providing in full for the standards set out in planning policy.

Following the independent assessment, any further advice required from the Councils appointed Viability Consultant would be charged at a cost of £175 per hour (at the applicants cost).

Once finalised, a summary of the viability appraisal (template attached in the documents section) will be published to the planning application file. The summary template is shown here.

Relevant planning application submission

All applicants should complete and submit the Planning Obligations / Section 106 Statement with their planning applications. In addition, if a reduction in Section 106 contributions is being sought, a Viability Appraisal must be submitted as described above.

Documents