London Assembly report fails to paint accurate picture of section 106 success 

London Councils has today warned that the London Assembly's report on section 106 agreements fails to paint an accurate picture of how successfully the system is working in the capital.

The Assembly report fails to consider 'benefits in kind' negotiated through section 106 agreements, which means it ignores a large proportion of the benefits negotiated. In 2005/6, the capital's boroughs negotiated £230 million from developers for community improvements - which included just under £80 million in benefits in kind from developers.

Section 106 agreements are funds negotiated by councils from developers to off-set the impact of a new development on the community. These agreements are used by boroughs to fund a range of benefits - from affordable housing to new transport links to youth centres in inner city areas.

London Councils is also concerned that the report does not fully address the issue of the Mayor's role in section 106, negotiations or the likely changes to the system once the government's proposed community infrastructure levy (CIL) is introduced.

The organisation has already argued that the Mayor should be excluded from negotiating section 106 agreements - and demanded an explicit commitment from government that the Mayor will be excluded from negotiations when CIL is introduced.