General practices are essential to local communities, yet securing funding for renovations or expansions can often be challenging. Section 106 agreements present a valuable opportunity for healthcare providers to access funding to make these infrastructure improvements, which can significantly enhance the experience for staff and patients alike.
Whether this is the first time you have heard about Section 106 agreements or you want to grow your existing knowledge further, this article will outline the key ideas you need to know. Continue reading to find out more.
What is a Section 106 agreement?
Sometimes referred to as a planning obligation, Section 106s are legally binding agreements between developers and local authorities in England. They are designed to ensure developers contribute to the infrastructure needed to support their projects, such as schools, roads or healthcare facilities.
When does a Section 106 apply?
Typically, it applies when a new development is expected to impact nearby services significantly. The financial obligation will be agreed upon with the local authority during the planning process to ensure the needs of the people close by are sufficiently met.
For your practice, this could mean receiving capital to renovate or expand existing premises to accommodate a growing patient population.
How long do Section 106 agreements last?
A Section 106 agreement is usually time-sensitive. The funds outlined must be spent within a specific period, often five to 10 years. If the money is not used within the timeframe, it may be returned to the developer.
Why Section 106 agreements matter to GPs
Public healthcare in the United Kingdom is notoriously underfunded, which makes finding other ways to pay for critical projects essential. GPs should care about securing this capital because it allows them to:
- Modernise outdated facilities
- Add additional consultation rooms or waiting areas
- Improve accessibility for disabled patients
- Enhance the overall experience for anyone who enters
- Provide better care while meeting the demands of a growing population
How are Section 106 contributions allocated?
Local authorities manage the allocation of Section 106 funding. They assess the impact a development could have on services and decide how the money should be distributed. Key factors influencing this include:
Local need – Funds are directed to the areas that will be impacted most
Priority projects – Certain projects may align with broader community requirements
Developer negotiations – The scope of the agreement depends on what is decided between the development firm and planning officers
How can my GP access Section 106 funding?
To access this opportunity, you should first engage with your local authorities. Try to establish relationships with key figures and stay informed about upcoming developments in your area. Next, provide evidence of how your practice is impacted by population growth and service demand. Finally, submit proposals that outline how this additional income can be used to improve patient care.
We understand that this may seem like a lot, especially when you are focusing on meeting the needs of your community. Fortunately, this is just one of the many healthcare property services that Eddisons can help with. Get in touch today and our experts can guide you through the entire process.
Common Section 106 agreement challenges
Despite the benefits, these agreements can come with challenges, such as:
- Administrative complexity – The application process can be bureaucratic and time-consuming
- Competition – With limited funds available, GPs will be competing with other services in the area
- Legal and financial risks – Delays or disputes can jeopardise access
The future of Section 106 agreements
According to the Department for Levelling Up, Housing and Communities (DLUHC), the government plans to phase in the Infrastructure Levy as a replacement for Section 106 agreements over the next decade. The new system aims to simplify the process and increase transparency.
Get Section 106 assistance today
Eddisons is here to help you secure vital funding for your practice. We aim to ease the burden while allowing you to focus on what matters most: helping your patients. Our 30 offices are all over the country, ensuring a local specialist is never far away. We are also highly rated, with 100% of reviewers recommending us on Reviews.IO.
Please call 0800 051 2593 or fill in the form below to get started. If you want to learn more about our work or the property industry, check out the articles on our news and insights page.
