Section 106 monitoring fees

With effect from 1 April 2025, Shropshire Council introduced Section 106 monitoring fees.

The legislation and guidance says:

Regulation 122 (2A) of the Community Infrastructure Levy (CIL) Regulations 2010 (as amended) permit local authorities to charge a fee for monitoring and reporting on planning obligations. The Regulation 122 tests do not apply in relation to a planning obligation which requires a sum to be paid to a local planning authority in respect of the cost of monitoring (including reporting) provided:

• the sum to be paid fairly and reasonably relates in scale and kind to the development, and
• the sum to be paid to the authority does not exceed the authority’s estimate of its cost of monitoring the development over the lifetime of the planning obligations which relate to that development.

The aim of the planning system is to contribute to the achievement of sustainable development. The introduction of Section 106 monitoring fees will assist in actively monitoring the collection and spend of developer contributions. These contributions help deliver the Council’s Local Plan supporting planning issues such as housing, employment, retail, the environment and transport, ensuring the timely delivery of infrastructure and delivering the homes and jobs communities need as outlined in the Shropshire Plan.

The fees were introduced on planning applications received from 1 April 2025. They're not applied retrospectively for historic agreements.The fee and trigger point for payment will be written into the Section 106 agreement.

Please note:

• Payment of the Registration Fee is required upon completion of the agreement – this covers reviewing and recording of the details of the Section 106 agreement, including identifying all obligations and trigger points.
• Monitoring Fees are payable upon commencement of the development. The fees are not refundable if the development is not implemented or stalls.
• Increase in Registration and Monitoring charges reflects the level of the increased monitoring work required in relation to the size and scale of the development.
• For larger scale developments (500+), the monitoring fee will be negotiated outside of this charging scale, as consideration would need to be given to the size/scale of the development, number of obligations and trigger points within the agreement and build-out period.
• Upfront Payments incur a flat fee to cover administration costs for processing the payment and notification to recipient service areas.
• All fees will be reviewed annually and will be included in the Fees and Charges Schedule agreed by the Council.