Closer working call on pay outs from builders
£650,000 funds black hole
COUNTY Hall is looking at a £650,000 black hole in funding contributions from housebuilders who have shirked responsibilities to pay back into the community.
The loss of requested revenue from Section 106 contributions has caused so much concern members of Leicestershire County Council’s ruling cabinet will discuss it this week.
They are looking to forge stronger links with district councils, including Hinckley and Bosworth, to ensure the 106 monies asked for actually get handed over.
Councillor Richard Blunt, cabinet member for planning, said: “I want to work with district councils to ensure that public services receive the funding that they are due from developers. Without that funding, we can’t provide the roads, schools and other services that are needed when new housing and developments are built.”
The report before cabinet, which meets on Fri- day, says the council’s reasonable expectation of contributions is not always being met and shortfalls in contributions to education provision are a particular concern.
The report states: “Consequently, it believes that there is room for improvement in the working arrangements between the county council and local planning authorities in the delivery of sustainable and coordinated growth in the county by better collaboration between the authorities on Section 106 developer contributions (s106) and highway matters, particularly in circumstances where developers claim development viability issues.”
Over the past two years, the county council has secured £36 million in relation to 100 developments, to fund public services.
Under agreements called Section 106, developers are usually obliged to contribute towards roads, schools and other public services that may be required due to the construction of new housing and the extra pressure new residents put on services.
District councils decide most development applications and the amount that developers should pay. Some developers call for Section 106 payments to be reduced or waived, to make the development more cost-effective.
The county doesn’t have the resources to check up on every single case and sometimes district councils fail to notify them of 106 changes so on occasion the requested amount is not what the authority gets - hence the shortfall.
The council is now encouraging districts to do more to ensure county services are paid for, to provide the range of services which new communities need and to reduce the strain on neighbouring communities.
The report also recommends that any significant planning decisions made by the districts which don’t reflect the advice of the highways authority on road and transport implications should be relayed back to cabinet.
The cabinet will discuss the report when it meets at 11am on Friday June 17. It will be webcast live on the council’s website. MATTRESSES