Planning obligations can play an important role in making an otherwise unacceptable development acceptable in planning terms in limited circumstances. Both National Planning Framework 4 and Planning Circular 4/2025: Planning Obligations and Good Neighbour Agreements set out that when planning obligations are entered into, they should strictly adhere to the following tests:-

• necessary to make the proposed development acceptable in planning terms
• serve a planning purpose
• relate to the impacts of the proposed development
• fairly and reasonably relate in scale and kind to the proposed development
• be reasonable in all other respects

A Planning Authority has various tools available to it in order to capture planning obligations from developers. These include, section 75 of the Town and Country Planning (Scotland) Act 1997, and section 69 of the Local Government (Scotland) Act 1973. A planning obligation will typically be completed prior to the release of the planning permission by the Planning Authority. Examples of planning obligations that may be required for proposed developments include Education, Transport, Healthcare, Open Space and Affordable Housing.

Falkirk Council have developed suggested template agreements to secure planning obligations through both section 69 Agreements and section 75 Agreements. It is important to note that these agreements will vary according to the particular development that they relate to and any site specific negotiations.

Section 69 agreements are personal agreements between the Planning Authority and the developer and are not registered against title and accordingly are not binding on future owners. In practice, section 69 agreements are generally used to capture one off and up front contributions towards infrastructure. Contributions secured will be paid prior to the planning permission being issued by the Planning Authority.

Section 75 agreements are predominantly used where the Planning Authority wants to attach a planning obligation to the grant of planning permission, but the nature of the obligation means it makes sense for the payments or infrastructure delivery to be phased over the construction period of the development eg where significant financial contributions are required for infrastructure. Section 75 agreements are registered and binding on successors in title so phased payments, and legacy obligations can be used. This means that following the registration of the section 75 agreement, the planning permission can be issued and the planning obligations secured can be paid or delivered on a phased basis as the development progresses.

If a section 75 Agreement is entered into, the agreement will require the developer to give the Planning Authority prior notice of a payment date and then to make payment by that date. Provision may be made for that payment to include indexation.

It is the developer's responsibility to give the appropriate prior notice, to calculate the correct payment (including applicable indexation and late payment interest), to have that verified and agreed by Falkirk Council and thereafter to make payment timeously. It is not incumbent on Falkirk Council to calculate the payment nor to issue a demand for payment.

Prior notice should be made by email to Development Management at dc@falkirk.gov.uk and to obtain the Council’s bank details for payment by bank transfer. The planning application reference (to which the section 75 agreement relates) should be included as the payment reference for all payments.