These days developers actually pay huge sums in Section 106 contributions in exchange for planning permission. This money helps top up the council coffers to make up for the government cuts. Foe example on one development of 228 houses the contributions totalled over 2 million pounds split between sustainable travel (based on a rate per bedroom), Education (based on a certain number of primary and secondary school places at £X per place), compensation for loss of green space, and a sum to provide and maintain alternative off site green space. They would also have to provide a certain percentage of affordable homes, which are sold at reduced rates to housing associations.
Averaging it out it came to around £10k per house.
Ultimately the majority of these costs often fall on the landowner because the developer will reduce their offer for the land accordingly.