UK Inquiry Tracker

Improving local areas through developer funding

Public Accounts Committee Closed Inquiry

Opened: 6 May 2025 Closed: 15 Dec 2025 Parliament page

The Ministry of Housing, Communities & Local Government (MHCLG) has overall policy responsibility for planning in England, while frontline decisions are made by Local Planning Authorities (LPAs). When a development is due to take place, developers make financial contributions to the LPA as part of the process of granting planning … Read more The Ministry of Housing, Communities & Local Government (MHCLG) has overall policy responsibility for planning in England, while frontline decisions are made by Local Planning Authorities (LPAs). When a development is due to take place, developers make financial contributions to the LPA as part of the process of granting planning permission. These contributions go towards infrastructure, such as affordable housing, schools and roads, to offset extra pressure created by the development on the local community. Contributions are made via Section 106 agreements (private agreements negotiated between developers and LPAs) and the Community Infrastructure Levy (CIL) (a charge that local authorities can choose to apply to new developments). The CIL cannot fund affordable housing, but in 2022-23, some 44% of affordable housing was provided through Section 106 agreements. The Public Accounts Committee has previously examined Government progress on targets set to deliver the affordable housing stock. In 2022 the Committee found that the Government was likely to fall short of targets and had failed to set a target outlining what percentage of new-build housing must be affordable. The Committee had previously warned that targets were likely to be missed in a 2019 report, which found that inherent problems at the heart of the housing planning system were likely to jeopardise the Government’s ability to meet targets. A recent investigation by the National Audit Office (NAO) focused on MHCLG’s ability to oversee the current developer contribution system and whether this was having the intended benefits for local authorities and communities. The NAO’s work will inform the Committee’s inquiry, as it hears evidence from senior MHCLG officials, on topics likely including: Asking if the current system is understandable and accessible to stakeholders; Questioning if LPAs are receiving the correct support from MHCLG to ensure they are able to efficiently and effectively collect and spend developer contributions and; Examining MHCLG’s oversight of the system and its ability to learn and apply lessons to the process. If you have evidence on these issues please submit it here by 23:59 on Monday 16 June 2025. Please look at the requirements for written evidence submissions and note that the Committee cannot accept material as evidence that is published elsewhere. Please note that the Committee’s inquiry cannot assist with individual cases. If you need help with an individual problem you are having, you may wish to read the information on Parliament’s website about who you can contact with different issues . Show less

14 Recommendations

16 Conclusions

1 Report

1 Oral session

2 Letters

1 Event

Activity timeline 6 events

19 Jan
2026

Report published

Treasury minutes: Government response to the Committee of Public Accounts on the Forty-sixth report from Session 2024-26

13 Nov
2025

Correspondence

Letter from the Permanent Secretary of the Department for Education relating to Treasury Minute Response – Improving Educational Outcomes f…

17 Oct
2025

Report published

46th Report - Improving local areas through developer funding

14 Jul
2025

Correspondence

Letter from the Permanent Secretary of the Ministry of Housing, Communities and Local Government relating to the oral evidence session held…

30 Jun
2025

Oral evidence

Oral evidence session

30 Jun
2025

Formal meeting (oral evidence session) · The Grimond Room, Portcullis House

Committee event

Oral evidence sessions 1 session

30 Jun 2025

View on parliament.uk

Dame Sarah Healey DCB CVO · Ministry of Housing, Communities and Local Government Joanna Key · Department for Levelling Up, Housing and Communities William Burgon · Ministry of Housing, Communities and Local Government

Reports 1 report · click to expand

Title	HC No.	Published	Items	Response
46th Report - Improving local areas through developer funding	HC 886	17 Oct 2025	30	Responded

Recommendations & Conclusions

3 results

3 Conclusion Acknowledged

46th Report - Improving local area…

Identify viable local planning authorities for CIL and encourage wider adoption of the levy.

There are additional local planning authorities for whom starting to operate the Community Infrastructure Levy would be both feasible and beneficial. In November 2024, only 52% of all LPAs were operating the CIL. The CIL was intended to make getting … Read more

Government Response

The government agrees and states it will continue ongoing work with the Planning Advisory Service (PAS) to consider how to support local authorities in making best use of tools like the Community Infrastructure Levy (CIL). It expects more areas to consider CIL adoption following the English Devolution and Community Empowerment Bill, which empowers Mayoral Strategic Authorities to raise a Mayoral CIL.

HM Treasury

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1 Conclusion Acknowledged

46th Report - Improving local area…

Committee took evidence on improving local areas through developer funding.

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Ministry of Housing, Communities and Local Government (the Department) on improving local areas in England through developer funding.1

Government Response

The government agrees (with an unstated recommendation) and will explore proportionate and efficient ways of collecting and analysing data from Infrastructure Funding Statements (IFSs) to improve understanding of developer contributions. It also reminded Local Planning Authorities of their statutory duty to publish IFSs.

HM Treasury

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15 Conclusion Acknowledged

46th Report - Improving local area…

Financial viability and past policy uncertainty hinder wider adoption of Community Infrastructure Levy

Given that it can provide benefits for the local community, we asked the Department why more authorities were not operating the CIL, as only 52% of local authorities operate them. The Department explained that 16 Q 30 17 Q 31; … Read more

Government Response

The government agrees with the committee's recommendation that more local authorities should operate the CIL and supports LPA capacity through the PAS and funding, and will work with PAS to support local authorities in using CIL effectively and implementing planning reforms.

HM Treasury

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Government Response AI assessment · 28 of 14 classified

Accepted 25

Acknowledged 3

Total 14 recs + 16 conclusions

Correspondence 2 letters

13 Nov 2025 To committee Letter from the Permanent Secretary of the Department for Education relating to Treasury Minute Response – Improving Educational Outcomes for Disadvantaged Children, 30 October 2025

Parliament page

14 Jul 2025 To committee Letter from the Permanent Secretary of the Ministry of Housing, Communities and Local Government relating to the oral evidence session held on 30 June 2025 on Improving local areas through developer funding, 09 July 2025

Parliament page