New research by the Home Builders Federation estimates that local authorities in England and Wales are sitting on over £8 billion of infrastructure payments made by developers, including over £6bn from Section 106 agreements and almost £2bn raised through the Community Infrastructure Levy (CIL). The research is based on a Freedom of Information (FOI) survey, which received responses from 208 local authorities. The responses show that, on average, councils hold £19 million in unspent Section 106 infrastructure contributions. This comes at a time when the central Government is short of money to invest in infrastructure as the new government searches for much-needed economic growth. Developer contributions are paid to the local authority to fund affordable housing, infrastructure and amenities to improve the local area for new and existing communities as part of the process of granting planning permission. The principal source of funding from builders comes from Section 106 agreements between the developer and the council detailing what will be provided or paid for, including new Social Homes, new school buildings, GP surgeries, parks and transport improvements. This research, however, demonstrates that some local authorities' lack of capacity or willingness to spend developer contributions is preventing communities across the country from realising the benefits that the industry has paid for. This further fuels misguided objections to development that cite a lack of infrastructure for local communities. Furthermore, 26% of the unspent contributions have been held for more than five years, suggesting that around £1.6bn of vital funds for Affordable Housing and other infrastructure has been sitting in council bank accounts for more than half a decade. The top 20 councils collectively hold around £2bn, with Oxfordshire County Council holding the most unspent Section 106 monies among respondents (£288m). Recent Committee notes published by Oxfordshire County Council highlight that it has held some funds for more than 20 years - completely severing the link between developer payments and new infrastructure provision for communities.
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