Provides revised guidance to local authorities in England on the use of planning obligations under the Town and Country Planning Act 1990 s106 as substituted by the Planning and Compensation Act 1991. It does not concern the powers given to the SoS to make regulations to replace s106 in the Planning and Compulsory Purchase Act 2004 ss46-47. It replaces and cancels DoE Circular 1/97. The changes in this Circular concern only the negotiation of planning obligations and do not introduce an optional planning charge as proposed in the November 2003 consultation paper " Contributing to sustainable communities: a new approach to planning obligations". Annex A sets out the statutory framework for planning obligations including arrangements for the discharge or modification of planning obligations. Annex B explains the policies of SoS and provides guidance on the use of planning obligations.