Council criticised for sitting on £42million

From: EAST ANGLIAN DAILY TIMES – 26 Nov 2011

Essex County Council

Following a freedom of information request made by the BBC in October, it was revealed by the organisation that ECC had collected around £42million as part of negotiations with developers.

It also revealed that around £726,000 had to be returned to developers because the deadline for projects had expired.

Now, former Harwich MP Ivan Henderson is demanding ECC reveal how much of the cash was due to be spent on improving amenities in Tendring.

“This money could have been spent on schools or road improvements. There have been calls to make the A120 safer following several accidents – so why hasn’t it been spent on something like this?” Mr Henderson said.

“The Local Government Association has described it as inexcuseable when there is such a need for that kind of investment at the moment.”

The money, which is gained under the Section 106 Agreement, is sought from developers by local authorities to fund new infrastructure which is needed when new developments are built.

“It is a lot of money that is not being spent so we want to know if any of that £42million will eventually be used. ECC have said they are in the process of spending it but to think how much of that cash could help our district – places like Jaywick – and it’s just sitting there,” Mr Henderson added.

“I am just wondering if it’s down to a squeeze in resources at the council which hasn’t left enough staff to keep an eye on the 106 Agreements and making councillors aware that money is not being spent.”

Mr Henderson, who sits on Harwich Town and Tendring District councils, said he would be writing to ECC and asking if these areas had lost out on funding.

“I’m sure people within the Harwich area and Tendring have some ideas about how the council could spend the money,” he added.

A spokeswoman from ECC said: “Essex is one of the largest counties and therefore it is unsurprising that we are holding around 25 per cent of the regional total of unspent developer contributions as it represents Essex’s approximate share of population in the local government Eastern region.

“The County Council is legally obliged to return any monies left over when we have completed a job, projects are no longer required, or are no longer technically or financially feasible.

“The amount of our returns to developers over the five years from 2006 is around 3.5 per cent which is comparable with other authorities.

“The Council continues to seek value for money through all its activities and the small sum returned demonstrates the commitment to spending contributions on the specific projects for which they have been designated.”

Source: EAST ANGLIAN DAILY TIMES – 26 Nov 2011