Developers applying for planning permission can be asked to contribute financially and in other ways to the infrastructure needed to support the new development, including health infrastructure, and to mitigate any impacts arising from the development.
Whilst the cumulative impacts of development in London are addressed through the Community Infrastructure Levy (CIL) system, section 106 planning contributions are secured to address the site-specific impacts of development, which can include healthcare. Section 106 of The Town and Country Planning Act 1990 allows local authorities to enter into a legal agreement with a developer to ensure that appropriate infrastructure and/or a financial contribution is provided. This is subject to satisfying certain statutory tests – see Government guidance
HUDU has developed and maintains a model to calculate indicative health contributions arising from development proposals which is in widespread use across London (and by some NHS organisations outside London).The model can be used to assess both site specific impacts and the impacts of cumulative growth over time. The London Plan (March 2021) encourages the use of the HUDU Model to calculate developer contributions to help fund the cost of new or expanded health facilities in order to meet the increasing demand for services arising from population growth.
(Paragraph 11.1.37)
Contributions in kind
Financial contributions are not the only way in which health benefits can be delivered. Sometimes it is more appropriate for a developer to provide floor space or a facility within a development; and there may be other aspects of the development which have a tangible health benefit such as the provision of play space or facilities that encourage active lifestyles.
For more information on the different ways the planning system can contribute to securing new healthcare infrastructure and improved healthcare services, please see HUDU’s Planning Contributions for Health – Case Study Examples guide.