Planning circular 4/2025: planning obligations and good neighbour agreements

1 Introduction

1. Planning is a powerful tool for delivering change in a way which brings together competing interests so that decisions reflect the long term public interest. Those decisions include where development should be located and whether it should be subject to additional requirements or constraints, in order to create and maintain successful places.

2. Planning obligations can support planning policy by removing obstacles to the grant of planning permission and facilitating the delivery of necessary infrastructure alongside other development.

3. This Circular sets out the circumstances in which planning obligations can be used, the tests to be complied with, and how planning authorities should demonstrate that the tests are met. It provides guidance on how agreements creating planning obligations can be concluded effectively and efficiently, and sets out the procedures for modification or discharge of planning obligations, and for appeal to the Scottish Ministers.

4. The Circular should be read alongside other guidance on relevant issues, such as local development planning, local place plans, and housing land audits, as well as the National Planning Framework (NPF4). Different areas of guidance will be relevant depending on the issues which planning obligations are intended to address in individual cases.

5. This Circular also provides guidance on good neighbour agreements, including arrangements for modification or discharge and appeal.

6. This Circular revokes and replaces Circular 3/2012, which was last updated in November 2020.