Planning: development taxes must take account of viability: planning tariffs that lack flexibility will deter developers.(In business: Deals, careers and management)

DOZENS OF DEVELOPMENTS ARE BEING SHELVED because section 106 packages agreed in the 'good times' now make them unviable.

Increasingly, developers with existing planning permissions are approaching councils with requests to renegotiate their section 106 agreements. For their part, local authorities are becoming aware of the need to be realistic about their 'shopping list' of requirements if development is to be brought forward.

If a straightforward reduction in the scope of the section 106 package is agreed, it is likely that local planning authorities will want, in return, a commitment from the developer to start on site as soon as possible. With new schemes, this …