Webinar Summary: Section 106 Contributions: Purpose & Recovery
Section 106 (S106) agreements play a vital role in shaping sustainable communities by ensuring that developments contribute to essential infrastructure and services. However, recent research highlights a growing challenge: billions of pounds in developer contributions remain unspent by local authorities. At Brookbanks, we believe understanding the purpose of these agreements, and how to recover unspent funds, is critical for developers and stakeholders alike.
What Are Section 106 Agreements?
Grounded in the Town and Country Planning Act 1990, S106 agreements are legal obligations designed to mitigate the impact of development. They must be:
- Necessary to make the development acceptable in planning terms
- Directly related to the development
- Fairly and reasonably related in scale and kind
Typically, these agreements cover contributions for highways, education, affordable housing, and community facilities. They are binding on the land and can be modified or discharged under certain conditions.
The Scale of Unspent Contributions
According to recent Home Builders Federation (HBF) research, local authorities in England and Wales are holding over £8 billion of infrastructure payments by developers, including more than £6 billion from S106 agreements and nearly £2 billion from the Community Infrastructure Levy (CIL). Alarmingly, only £20.6 million has been returned to developers in the last five years
.
Why Are Funds Sitting Idle?
Several factors contribute to this issue:
- Limited resources within local authorities to manage and deliver projects
- Delays caused by procurement or political changes
- Poor tracking of obligations across departments
- Narrow or outdated specifications in agreements
- Risk-averse spending approaches
Why Aren’t Developers Claiming?
For many developers, recovery of unspent contributions is not a priority. Reasons include:
- Focus on future developments rather than historic agreements
- Lack of robust documentation and payment records
- Desire for contributions to be used as intended
- Concerns about straining relationships with local authorities
The Benefits of Recovery
Actively pursuing unspent contributions offers significant advantages:
- Improved cash flow and financial flexibility
- Enhanced margins and reinvestment opportunities
- Stronger stakeholder confidence and proactive financial management
- Encourages local authorities to use future contributions effectively
Practical Next Steps for Developers
To maximise recovery opportunities:
- Locate and review all signed S106 agreements
- Note key dates and repayment deadlines
- Create a schedule of contributions made and due
- Submit requests to local planning authorities
- Engage collaboratively with LPAs
How Brookbanks Can Help
We’ve launched a dedicated Section 106 recovery service to support developers in reclaiming unspent contributions. Our team will:
- Review all agreements and identify funds eligible for repayment
- Liaise with developers to prioritise recovery
- Work collaboratively with local authorities to ensure successful outcomes
To learn more watch the full webinar, or contact Ben Wakeling at ben.wakeling@brookbanks.com and connect on LinkedIn.
Head of Cost and Commercial
Ben Wakeling
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Our July 2026 Newsletter
August 17, 2026
This month, we’ve continued to explore many of the key themes currently influencing the built environment, from sustainable drainage and climate resilience through to structural efficiency, site disposal and long-term project performance. A particular highlight from the past month was the publication of our new report, written in conjunction with the Home Builders Federation (HBF), examining Sustainable Drainage Systems and the opportunities we’ve identified in Wales to support greater consistency, certainty and efficiency ahead of guidance becoming legislation across England. This month, we also shared some exciting leadership news as we continue to grow and evolve following our recent partnership with CBPE. Plus, read on to take a look back at our latest thought leadership article covering development viability, as well as three podcast episodes from the past few weeks.