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Developers’ millions wait to be spent
TOWN Hall finance chiefs are sitting on a multi-million pound pot of cash gained from planning deals, the Tribune can reveal.
Less than half of the money developers have given to the council in return for permission to build in Islington has been spent on projects it was destined for, according to figures released through the Freedom of Information Act.
Over the past three years, the council has won £16million from developers for projects to benefit the community, which can include building new public swimming pools or providing street lighting.
But so far only £7million has been spent, leaving nearly £9million sitting in the bank.
Another £18million is outstanding, and will only reach the public purse once developments have progressed to a pre-agreed stage, which triggers the payment. The cash sum, which developers commit to during the planning process, is enshrined in a document known as a Section 106 (S106) agreement.
Labour councillor Martin Klute said: “The allocation of S106 money is at best sloppy. On occasions when I have tried to insist on precise allocation the Lib Dems always resist it.
“Funds seem to appear and disappear as suits their convenience, as happened with Finsbury Square and Cluse Court. There is no system to make sure money is spent on the right thing. In reality, there is nothing to stop the Lib Dems using the money as a slush fund.”
But Lib Dem council leader Councillor James Kempton said: “Section 106 is a way of ensuring developers contribute towards the costs and consequences of the development. We can’t expect them to cough up anything until they start building and a lot is only available when the whole scheme is completed.”
He added: “We wouldn’t be sitting on cash like that. It doesn’t disappear [into general funds]. We keep track of it.”
A Town Hall spokesman said: “Monies received but not yet spent have been earmarked for a significant number of environmental, streetscape and community projects which will be delivered this year and in subsequent years depending on the size and complexity of these projects.”
Schemes to benefit from the cash include new public open space at City Road Basin and Arundel Square, in Barnsbury, improved parks and open space at Kings Square, St Luke’s Gardens and Fortune Park, in Finsbury, and improved sports facilities at Finsbury Leisure Centre, Sobell Centre, Whittington Park and Elthorne Park, in Holloway. |
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