Why is CIL and S106 money still not being spent? 

I live a deliciously varied life and last week, I was at dinner with a group of councillors from across the South East. Organically, the subject of housing was raised to a resounding response of: ‘We can’t build more. Our towns are stretched. The doctors’ surgery is full. Our roads can’t take any more and we’ve not got enough school places.’ I winced and bit my tongue. Theirs is the classic response to housebuilding, but it also highlights the disconnect between planning permissions and monies collected in CIL (Community Infrastructure Levy) and Section 106 (S106) payments.

S106 payments are currently under review, but they are what developers have to offer in exchange for planning permission to mitigate the impact on the local community of their development and would be used to deliver anything from affordable homes, schools and GP surgeries through to new road infrastructure. By contrast, local authorities use CIL to raise funds for infrastructure, facilities and services and is payable on all development unlike S106, which is only expected on bigger developments.

Whether you’re talking S106 or CIL, it should be in the interests of councils to approve applications in order to raise revenue and support their communities. As Property Week reported in 2019, London Councils alone were sitting on at least £1.29bn in unspent contributions – with this figure excluding seven of the 32 London boroughs including Lewisham, Ealing, Enfield, Kingston and Newham, plus the City of London Corporation and Old Oak and Park Royal Development Corporation.

Through my own digging, I have discovered that Reigate and Banstead Council have collected more than £8m in CIL alone (*figure excludes S106 which will be higher), East Herts collected more than £12m in S106, Derby City Council collected more than £12m in S106 and the list goes on. Monies not spent within 10 years can be reclaimed by the developer, although few do for fear of not receiving planning consent, but this is still money unspent.

In the current climate of the inadequate and chronic undersupply of homes, surely we need to push councils to spend the money available. Having recently accessed a CIL grant from Camden Council to fund a warm space and community kitchen, I can share that it wasn’t too taxing to apply, spend and launch a project – the magic was in the knowing.

Councils and councillors must hold their teams to account, share the knowledge on opportunity and funding – and more crucially do better for their constituents and towns.