Which act formalizes the agreements that developers must adhere to for planning benefits?

Section 106 agreements are legal agreements between local authorities and developers that ensure developers provide certain benefits in return for the permission to build. These benefits often include contributions to community facilities, affordable housing, transportation improvements, and environmental enhancements. This mechanism helps to address the social and environmental impacts of new developments, making it a crucial aspect of the planning process in the UK.

The Localism Act focuses on empowering local communities to shape their own environments and make decisions about planning, but it does not specifically deal with the formalization of agreements in the way that Section 106 does. The Environmental Protection Act is concerned with environmental safeguards and standards, while the National Planning Policy Framework provides guidelines for planning policy but does not specifically address the binding agreements made between local authorities and developers. Thus, Section 106 agreements are specifically designed to formalize the commitments developers must adhere to regarding planning benefits.