Developer contributions

When a Section 106 obligation will be sought

Blackburn with Darwen Borough Council will only seek contributions in relation to major planning applications, i.e. where 10 or more homes will be provided, or a proposed residential site has an area of 0.5 hectares or more. For non-residential development this means additional floorspace of 1,000 square metres or more, or a site of 1 hectare or more.

The financial contribution requirement for off-site green infrastructure provision is set via the Green Infrastructure & Ecological Networks Supplementary Planning Document, and the Affordable Housing Developers Guide sets the tariff for off-site affordable housing contributions. These documents can be accessed in the Planning policies, strategies and guides section.

Contributions towards other infrastructure works as a result of new development, such as highways, education or health are agreed on a case by case basis, evidenced by an assessment of the impact the specific development will have. The final decision is usually made by the Planning and Highways Committee in accordance with Council’s Constitution.

The Community Infrastructure Levy (Amendment)(England)(No.2) Regulations 2019 allow Local Authorities to charge a monitoring fee through Section 106 planning obligations, to cover the cost of the monitoring and reporting on delivery of that Section 106 obligation as described above.

Further details on monitoring fees and the process for agreeing and spending Section 106 contributions.

Applicants are encouraged to utilise the pre-application advice service to allow Section 106 requirements to be identified prior to submitting a planning application.

Indexation

For planning applications received from January 2023, Indexation will be included in all new Section 106 (s106) agreements. Indexation will provide the Council protection against inflation for s106 obligations and ensures protection against the cost of delivering infrastructure rising from the time the agreement is signed. Indexation will not be applied to Affordable Housing contributions. The Council will utilise the BCIS All-in Tender Price Index, updates to the indices are published regularly and will be evidenced at the time of invoicing.  The indexation will run from the date the s106 agreement is signed up to the invoice date for the commuted sum when the relevant trigger point is reached. The 1% motioning fee will be added to the invoice based on the indexed amounts.  

Indexation calculation

Where any financial contribution in this Agreement is to be "Indexed" then the amount of the contribution after application of the Index shall be calculated according to the formula:

Amount after indexation = A x B/C

Where:

  • A = the amount of the financial contribution as set out in this Agreement;
  • B = the Index at the date of the invoice raised when the trigger point is reached; and
  • C = the Index [at the date of this Agreement].

Interest

If any payment due to the Council under this Agreement is paid late interest at 4 percent above the base lending rate of Bank of England from time to time will be will be payable from the date payment is due to the date of actual payment.