S106 and CIL Spend for Merging Authorities

RE: S106 and CIL Spend for Merging Authorities

2026-02-02T10:31:46Z

Hi there,

I am watching this with baited breath.

In terms of S106. The contributions are negotiated based upon an underlying policy and would need to be spent in line with this (if the agreement is not specific enough). The new authority would not supersede this.

In terms of CIL I would imagine that anything that has been committed is secure but that it might be open house on other receipts.

RE: S106 and CIL Spend for Merging Authorities

2026-01-22T09:55:45Z

Watching too with interest

RE: S106 and CIL Spend for Merging Authorities

2026-01-21T08:30:38Z

Does anyone have any experience of going through local government reorganisation into a new unitary authority and can advise on their experiences around any 'freeze' on CIL/s106 expenditure in the years before the new unitary authority comes into place?

Does the shadow unitary need to sign off on all CIL & s106 spending? If so, how does this work in practice?

How does it work where there is a clawback date for the spend of s106 money?

RE: S106 and CIL Spend for Merging Authorities

2025-02-12T11:44:59Z

Hi John,

Many thanks for your message, very much appreciated, and makes sense.

RE: S106 and CIL Spend for Merging Authorities

2025-02-07T17:21:02Z

Hi Debbie,

I have some experience of this. As you say, the area within which s106 contributions may be used should be defined in individual s106 agreements. If its not specified then you can expect the new authority to act in accordance with the agreement and in a way that reflects its own priorities and delivery opportunities – which may or may not be in the area that gave rise to the contribution. Local political concerns may influence this, but when councils are hard pressed financially, spending sums ‘out of area’ may in some cases be seen to make sense.

Regarding CIL, I understand that following creation of a unitary Council, CIL can be spent within the overall area – not just within the area from which it was collected. Nonetheless there is a wide recognition that spending CIL funds ‘out of area’ wouldn’t be well received in the area that generated the CIL in the first place. So for CIL spending purposes area boundaries have been respected – but again respecting the priorities of the new authority.

Ahead of a new unitary being set up one can expect there to be a shadow authority that will have oversight of decision making and – in practice a veto on any spending it doesn’t support. Obviously any funding that is spent before then will reflect the priorities of the ‘old’ authority.

My suggestion would be that if you have spending plans/aspirations that cannot be delivered ahead of any new govt arrangements coming into place, that you aim to put those in place in your capital programme. Again, in my experience settled budgets with identified funding tend to be respected and carried forward.

S106 and CIL Spend for Merging Authorities

2025-02-06T11:02:52Z

Hi there,

With the new Governments plan to merge LA's do any of you either know, or have experience (if you've previously merged) what happens to S106 and strategic CIL monies collected by each authority area?

S106 is maybe easier to understand because those funds are usually earmarked for a specific project - but if it is purely for 'affordable housing' with the area not specified for example - could this be spent anywhere within the jurisdiction of the new authority which could be massive and not relate to the area the funds were collected from. Likewise with CIL - a project on the other side of the merged authority that has no bearing on the area the funds were collected from?

Just curious really, and with the CIL aspect, if this is the case is it better to spend the collected levy before any merger takes place so you can ensure the funds are spent within your existing area!

Any advice would be much appreciated.