East Lancashire councils sitting on £4m to improve neighbourhoods

5:10am Monday 4th August 2008

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By Tom Moseley »

COUNCILS across East Lancashire are sitting on more than £4million that is supposed to be spent to improve neighbourhoods.

A freedom of information request has shown that town halls have only spent half of the cash they were given by developers as a condition of planning permission.

In the past 10 years, they have amassed £8.2million under s106 of the Town and Country Planning Act.

The so-called “section 106 agreements” are used by developers to get the green light for building work.

They include improvements to local highways and creating green spaces.

And according to figures released under the Freedom of Information Act, £4.1million of this has yet to be spent.

Town hall bosses say much of the cash is earmarked for ongoing projects or long-term maintenance of land.

But Hyndburn MP Greg Pope said: “Hyndburn Council is pleading poverty and cutting services, so I am surprised to see there is this money sloshing around unspent.”

Mark Wallace, of the Taxpayers’ Alliance, said: “If councils insist on placing this financial burden on companies wanting to develop in the area they should at least use the money, either for services or preferably for tax cuts for everyone else, particularly at the moment with people struggling to make ends meet.”

Andy Yuille, of the North West Campaign to Protect Rural England, said s106 agreements were not always used as effectively as they could be.

Recently Tesco agreed pay £1.5million after winning planning permission to build a supermarket in Accrington.

But Coun Andy Kay, Labour’s regeneration spokesman in Blackburn with Darwen, said the cash was allocated specifically to projects so councils could not choose what it is spent on.

Blackburn with Darwen, Burnley, Pendle and Hyndburn Councils responded to the Lancashire Telegraph’s Freedom of Information request.

Rossendale and Ribble Valley did not, and Lancashire County Council refused, claiming it would cost tmore than £450 to give figures.

Hyndburn Council said the outstanding amount would be fully committed once spending had been agreed by councillors.

* Blackburn with Darwen Council has received £2,145,000 in the last 10 years and has £748,000 still outstanding; Hyndburn Council received £1,923,350 but has £1,300,000 outstanding; Burnley Council has received £2,700,000 with £1,200,000 outstanding; Pendle Council has received £1,486,000 and has £1,300,000 outstanding.