When new homes are built, they are supposed to bring more to local communities than bricks and mortar. Through Section 106 agreements and the Community Infrastructure Levy, developers contribute millions of pounds each year towards local infrastructure – funding schools, healthcare facilities, transport improvements and affordable housing.
Yet recent figures show that more than £9 billion in developer contributions is currently sitting unspent in local authority accounts. For communities waiting for improved services and infrastructure, that is not just an accounting issue – it is a missed opportunity. Read this week’s blog to understand why rising unspent contributions matter and what the real impact is for local areas.
A new report shows that local authorities across England and Wales have, in their bank accounts, an estimated £2.8 billion of unused contributions from home builders.
This is money that builders contribute through what’s known as ‘Section 106’ contributions to local authorities as part of the planning agreement, the purpose of which is to fund local services and infrastructure upgrades. Find out more about how these important funds are going unspent in this week’s blog.