Council sitting on £33m in unspent funds from developers

By James Kelly

7th Dec 2020 | Local News

Cheshire East Council is sitting on more than £33 million of section 106 contributions from developers, with some money dating back from a planning application 28 years ago.

A freedom of information request by the LDRS has revealed that the authority currently has £33,428,764 in unspent section 106 funds, having collected £39.7 million of such contributions since 2010.

"As a large unitary authority, Cheshire East Council is responsible for many development projects across the borough, a number of which deliver financial contributions of ultimate benefit to local communities," a spokesperson told the LDRS.

"Most developer contributions are linked to a specific development project, in accordance with the legal agreements between the council and the developer.

"Where S106 money is directed towards specific community projects, such as recreational and leisure facilities or more substantial projects, such as associated highways improvements, there are a number of steps to be followed before those projects can be implemented.

"These can include planning applications – outline and detailed – project planning, consultation with residents, town and parish councils and – where work is being carried out by the council – an appropriate timetable for that work to take place."

The oldest known application which still has unspent contributions was an extension to the former Cheshire Building Society offices on Castle Street, Macclesfield.

The application was submitted to CEC's predecessor, Macclesfield Municipal Borough, in 1992 and approved a year later and currently has £35,000 unspent from its agreement.

Other successful applications with contributions left to be exhausted from the 1990s include a 1998 bid to construct townhouses in Handforth, and a medium density housing project off Hamble Way in Macclesfield from the same year.

The Handforth project has £113,000 left to be used, whereas Hamble Way has just over £10,000 remaining.

Although the council has a £33 million pot available, much of this is already tied up in ongoing projects, according to CEC.

The spokesperson added: "In view of the scale of new housing developments and other schemes in Cheshire East, there will always be a pot of S106 contributions which are ring-fenced for specific projects. The sum of £33m may appear to be large but those monies are allocated and will be spent in due course.

"Legal agreements (or legal obligations) fall under Section 106 of the Town and Country Planning Act and can be of benefit to all local authorities and communities affected by housing or commercial developments that call for some mitigation."

     

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