In the News: Council Leader demands answers over £140m in unspent infrastructure funds

The demand follows findings from the Home Builders Federation (HBF), which reveal that local authorities across England and Wales are collectively sitting on more than £8 billion in infrastructure contributions from developers. Of this, over £6 billion comes from Section 106 agreements, with nearly £2 billion raised through the Community Infrastructure Levy (CIL).

Essex County Council ranks fifth nationally for the highest amount of unspent Section 106 funds, holding £140.4 million. This includes £35 million earmarked for highways and £101.4 million allocated for education provision. Oxfordshire County Council tops the list, with £288 million currently unspent.

Reacting to the figures, Cllr Callaghan said:

"This is a scandal. Residents in Basildon - especially in areas where there are increased housing developments will be outraged to learn that millions meant for improving their roads, schools, and community infrastructure are just sitting in a bank account.

We need urgent answers. This money was secured through planning obligations to benefit our borough, and it should be making a real difference on the ground - not gathering dust."

Section 106 agreements can include clauses requiring funds to be returned to developers if they remain unspent for a prolonged period. Cllr Callaghan is concerned this may already be happening.

"I'm demanding transparency. Essex County Council must disclose how much money, if any, has been returned to developers. Given the pressing infrastructure needs in Basildon, it's vital we get a full breakdown of the figures. I will be formally writing to request this information."

Section 106 of the Town and Country Planning Act 1990 allows local planning authorities to enter legal agreements with developers to secure contributions for local infrastructure and services. These typically include commitments to fund or deliver:

• Community facilities
• Public open spaces
• Transport and highway improvements
• Affordable housing

Cllr Adele Brown, Deputy Leader and Cabinet Member for Housing & Infrastructure, added:

"We hear more about the need for improved infrastructure from residents than anything else. It's their top priority. To learn that Essex County Council are withholding this money and failing to spend it, proves beyond any doubt, why Basildon must become a unitary authority and have full control over deciding when and where to spend developer contributions for infrastructure.

"It's now undeniable, that we should have more roads, better transport, more schools and improved health facilities in our borough but Essex County Council are denying us that opportunity by sitting on this cash and banking the interest on it. It's a disgrace."

Cllr Callaghan is urging Essex County Council to take immediate steps to ensure allocated funds are invested in communities without further delay.

Ends

Published 15 May 2025.