Bromsgrove District and Redditch Borough Councils: Section 106 developer contributions

Cambridge Econometrics was commissioned by Bromsgrove District and Redditch Borough Councils to produce a tool to estimate the additional healthcare costs arising from new housing developments.

This was in response to a proposed development of over 2,500 homes in the local area. Our work helped to inform the Councils’ position on the ongoing Section 106 negotiations between a local NHS Trust and the developers.

Section 106 agreements are private arrangements made between local authorities and developers that are used to mitigate the impact of a new development on the local community and infrastructure.

Cambridge Econometrics’ tool considered dwelling and household sizes and the characteristics of the potential households moving to the new development to identify the ‘new’ population that was not previously served by the NHS Trust. The households that were not considered ‘new’ to the area and were previously served by the Trust include those that move into affordable housing and those who were previously a concealed household. Our tool was handed over to the Councils to help inform their position on future Section 106 negotiations for other new housing developments.

Shyamoli Patel Principal Economist [email protected]