Shropshire Star

Revealed: Cash-hit councils keep on cutting but have millions in the bank

Cash-strapped councils still have millions of pounds in the bank given to them by developers for projects to improve communities.

Published

Shropshire, Telford & Wrekin and Powys councils are all currently making deep cuts in services but have more than £20 million in payments from developers left unspent, according to new figures revealed today.

The money is kept in funds paid by developers as part of section 106 agreements that are made as part of the planning process.

The figures reveal that:

  • Telford & Wrekin Council has more than £13 million in the bank from section 106 payments.

  • Shropshire Council has almost £7 million left unspent in its account.

  • Powys County Council has more than £1.2 million left to spend.

But council officers today said the money is to be used on certain community or infrastructure projects, which may have to take place at a specific time.

They said the cash, paid by developers under the Town and Country Planning Act 1990, cannot be used to ease cuts in services because it is ringfenced for capital projects.

Telford & Wrekin Council received £5.65 million in contributions in 2015/16.

Some £1.73 million went towards towards the Lawley Primary Academy, £46,722 was spent on floodlights at St George's Sports and Social Club and £5,130 was spent on new play equipment at Snedshill.

Chris Kowalik, spokesman for Telford & Wrekin Council, said: "All this money is ringfenced for particular projects to be spent at a certain time, or by a certain time, in some cases the spending deadline is years away, and that's why it's in the bank until such time it has to be spent.

"If it isn't spent on the project it's ringfenced for, on or by the time stipulated, then it would have to be given back."

Shropshire Council has £6.8 million still waiting to be spent. In 2016 it received £3.1 million, £413,835 of which was spent on affordable housing, £186,757 on improvements to highways, car parks and the environment, £259,101 on play areas and open spaces and £32,427 on education.

Over the past five years, Powys County Council has received £1.65 million from developers under section 106 and has £1,261,918 still unspent.

The council said the sum associated with an application is dependent on the project taking place, the application may be granted for a development in a particular year but the project may not start immediately and it could be some years before work starts.

Sorry, we are not accepting comments on this article.