As part of the planning process, in line with current planning guidance - the council (wherever possible) secures either monies towards provide various highway initiatives to improve the adjacent area (typically via a S106 agreement) or mitigation measures in the form of highway improvements (typically via a S278 agreement). Such agreements are dependent upon the size, type and nature of the development, the impact the development has on the road network.  

S278 Agreement

A Section 278 Agreement (of the Highways Act 1980) is an agreement between the council and a developer which describes proposed modifications to the existing highway network to facilitate or service a proposed development (i.e. typically the scope of any off site works are to mitigate the impact of the development on the existing road network).

The S278 Agreement provides a legal basis for the responsibilities (financial and otherwise) of parties involved in constructing works on the public highway, typically including the agreed highway works design, payments associated with the works and possible claims and land provision and dedication. A Section 278 Agreement only applies to works on existing highways.

Examples of such works could be the construction of new access/junction improvement of the highway/junctions, or safety related works such as traffic calming or improved facilities for pedestrians and cyclists.

S106 Agreement

Section 106 (S106) of the Town and Country Planning Act 1990 allows a local planning authority to enter into a legally-binding agreement or planning obligation with a landowner in association with the granting of planning permission. The obligation is termed a Section 106 Agreement.

Typically a section 106 agreement is used to secure financial contributions from a developer, for example to fund improvements to the highway or public transport or to fund education facilities. This type of agreement are a way of delivering or addressing matters that are necessary to make a development acceptable in planning terms. They are increasingly used to support the provision of services and infrastructure, such as highways, recreational facilities, education, health and affordable housing.

Following changes in planning legislation, a new form of process has been developed - referred to as a "Community Infrastructure Levy". Central Government has initially proposed to allow Planning Authorities to introduce a new Community Infrastructure Levy in 2011. This may alter the approach to S106 agreements and result in all contributions being tariff based, set and collected by local authorities. This approach will require a costed infrastructure package to be agreed for each area. The approach will also remove the need to allocate funds to schemes directly generated by the impact of development on a particular local area.