CIL and S106
Developer Contributions: CIL and Section 106 Explained
When new homes or buildings are built, more people use local roads, parks, schools and community facilities. To help support this extra demand, developers are often required to make contributions towards local infrastructure.
There are two main ways this happens: CIL and Section 106 agreements.
What is CIL?
CIL (Community Infrastructure Levy) is money paid by developers to support local infrastructure and community facilities.
A share of this money is given directly to the parish council where development takes place.
The parish council can use CIL funding for projects that benefit the community, for example:
Improving play areas and parks
Supporting community buildings and sports facilities
Footpath and cycle route improvements
Traffic calming measures
Environmental or green space improvements
What is Section 106 (S106)?
A Section 106 agreement is linked to a specific development. It ensures the developer helps deal with the impact their development creates.
This might include:
Affordable housing
Road or junction improvements
New play areas or open space
Education or community facilities
Sometimes improvements are built directly by the developer rather than money being paid.
What’s the difference?
CIL money can be used on wider community improvements.
S106 contributions must be used to deal with the impact of a specific development.
Both aim to make sure new development supports local communities.
How are decisions made?
The parish council discusses how funds are spent at public meetings, and residents are welcome to suggest ideas for local improvements.