Councils in England Are Holding On To £1.5bn Of Unspent "Community Money" – With Hertfordshire One Of The Worst!

The money is required under Section 106 of the Planning Act and is intended for use in social and community projects.

The scandal is, that at a time of council cutbacks, £421m across the country has not actuallybeen allocated to any local improvements and over the past five years £9.8m has had to be returned to developers, often because it has not been spent within the specified time period.

Local Liberal Democrat Councillors are greatly disturbed that the BBC has now discovered that Hertfordshire County Council holds the most "unspent" money with £56m in the coffers at County Hall.

Section 106 agreements are negotiated between a developer and a planning authority to help pay for new or improved social and physical infrastructure that are needed as a result of the new build. This money can be used to help fund affordable housing and youth services, community facilities and schools as well as to make improvements to roads.

Conservative-run Hertfordshire County Council, which has returned £691,000 and has £58m of unspent Section 106 money, claimed that there are "strict legal limitations" on how the money can be spent. Money provided through Section 106 agreements can only be used for the purposes set out in the agreement and not for other purposes. Agreements often include geographical limitations, and limits round how long the money may be kept for."

Lib Dem Herts County Councillor for Tring and the Villages, Nick Hollinghurst said "This is not good enough. Herts County Council's excuses just don't wash. You can't get any S106 money unless it is based on an expenditure which is practical, relevant and appropriate to the development. So if the Planning Authority does have an agreement with a developer there should be a scheme or schemes on which the money can be spent.

"To give an example, there are two schemes required in the village of Gubblecoteand there are two significant housing developments going ahead in the village. We need a new footway for children to get to school safely on foot. Nearby, a hump-backed bridge over the canal is frequently the cause of collisions and bridge-strikes where we need traffic light control. Buckinghamshire uses S106 money to improve safety and protect canal bridges in this way. I expect Hertfordshire to do the same.

"I shall be furious if these two schemes for the people of Gubblecote are not funded out of S106 money from Gubblecote developments!"