The development of new homes, commercial buildings, and public spaces plays a vital role in shaping towns and cities across England. Growth brings clear benefits, including new jobs, improved housing supply, and increased economic activity.

However, development also places additional pressure on local infrastructure such as roads, schools, healthcare services, drainage systems, and public spaces.

To ensure that growth remains sustainable, the planning system uses two key mechanisms: the Community Infrastructure Levy (CIL) and Section 106 Agreements.

While both are technical planning tools, their purpose is simple to ensure that new development contributes fairly to the infrastructure and services it relies on.

What is the Community Infrastructure Levy (CIL)?

The Community Infrastructure Levy (CIL) is a planning charge introduced under the Planning Act 2008. It allows local authorities to raise funds from eligible developments to support infrastructure needed to accommodate growth.

CIL is typically applied to developments that:

  • Create more than 100 square metres of new floor space, or
  • Involve the creation of a new residential dwelling

Each local planning authority sets its own CIL rates, which are based on local development viability, land values, and infrastructure requirements.

Because of this, CIL charges can vary significantly between different regions and development types.

What Does CIL Fund?

CIL contributions are used to fund wider infrastructure that supports the long term development of an area, including:

  • Road improvements and transport networks
  • New or expanded schools and educational facilities
  • Healthcare infrastructure such as GP surgeries
  • Parks, leisure spaces, and community facilities
  • Flood defence systems and drainage improvements
  • Utility upgrades to support increased demand

A key benefit of CIL is that funds from multiple developments can be pooled together. This enables local authorities to deliver larger infrastructure projects that would not be viable through individual planning agreements alone.

Understanding Section 106 Agreements

Unlike CIL, Section 106 Agreements (often referred to as S106 agreements) are legal planning obligations negotiated between a developer and the local planning authority.

They are made under the Town and Country Planning Act 1990 and are used to mitigate the specific impacts of a particular development.

Section 106 agreements are site specific and tailored to the individual circumstances of each project.

What Can a Section 106 Agreement Include?

A Section 106 agreement may require developers to provide or contribute towards:

  • Affordable housing provision
  • Highways improvements and transport mitigation
  • School expansions or education contributions
  • Public open spaces, parks, and play areas
  • Environmental enhancements and biodiversity improvements
  • Community facilities or local infrastructure upgrades

Because each development has unique impacts, Section 106 agreements provide flexibility for local authorities to address specific needs within the surrounding area.

Key Differences Between CIL and Section 106

Although both mechanisms are designed to support infrastructure and community benefits, they operate in different ways.

Community Infrastructure Levy (CIL)

  • Standardised charge based on development size and location
  • Used to fund wider strategic infrastructure
  • Applies automatically if adopted by the local authority
  • Less negotiation required

Section 106 Agreements

  • Individually negotiated for each development
  • Focused on site specific impacts
  • Often includes affordable housing and local mitigation
  • More flexible but more complex

In many cases, developments are subject to both CIL and Section 106 obligations, depending on local policy and project type.

How CIL and Section 106 Work Together

CIL and Section 106 are designed to complement each other rather than overlap.

  • CIL supports strategic, large scale infrastructure across a wider area
  • Section 106 addresses direct, localised impacts of a specific development

Together, they ensure that growth is properly supported at both a local and regional level.

This combined approach helps create developments that are not only deliverable but also sustainable in the long term.

Why These Planning Mechanisms Matter

As development continues across England, pressure on existing infrastructure increases. Without proper planning contributions, communities can experience:

  • Overcrowded schools and healthcare services
  • Increased traffic congestion
  • Insufficient green space and public facilities
  • Strain on utilities and drainage systems

CIL and Section 106 ensure that growth contributes positively to the areas it affects, helping maintain quality of life for existing and future residents.

How Woodhart Construction Limited Can Help

Navigating planning obligations such as CIL and Section 106 can be complex, particularly for developers managing budgets, timelines, and compliance requirements.

Woodhart Construction Limited has extensive experience supporting clients through planning, preconstruction, and delivery stages where these obligations apply.

Their expertise helps ensure developments are:

  • Fully compliant with planning requirements
  • Efficiently managed from a cost perspective
  • Aligned with local authority expectations
  • Delivered with minimal delay or disruption

By understanding both the technical and practical implications of planning obligations, Woodhart Construction Limited supports clients in moving projects forward with confidence.

Building Stronger and More Sustainable Communities

CIL and Section 106 agreements play a crucial role in shaping the future of towns and cities across England. They ensure that development does more than deliver buildings it actively contributes to the creation of well connected, sustainable communities.

When managed effectively, these planning tools help deliver:

  • Improved infrastructure
  • Better public services
  • Enhanced community facilities
  • Long term sustainable growth

With the right planning and experienced construction support, development can have a lasting positive impact on both current and future generations.