Negotiation vs. Standard Charge: Section 106 Agreements vs. Community Infrastructure Levy (CIL)

  • Negotiation vs. Standard Charge: S106 agreements are negotiated and site-specific, whereas CIL is a non-negotiable, standard charge.
  • Scope: S106 is typically used for site-specific mitigation and affordable housing, while CIL is used for broader infrastructure improvements benefiting the wider area.
  • Flexibility: S106 offers flexibility to tailor obligations to specific developments, whereas CIL provides a predictable and streamlined funding mechanism.


Both mechanisms are essential tools for local authorities to ensure that new developments contribute to the infrastructure and services required to support growing communities.

Negotiation vs. Standard Charge: Section 106 Agreements vs. Community Infrastructure Levy (CIL)
Section 106 Agreements
A Call for Reform: Implementing a Profit Cap Mechanism in Section 106 Agreements