NEW research estimates that Devon County Council has not spent more than £11 million of housing developer contributions.

Research by the Home Builders Federation (HBF) reveals that, on average, local councils across the country hold £19 million in unspent Section 106 infrastructure contributions. These contributions are made by developers to fund affordable housing, infrastructure and amenities to improve the area and existing communities.

The principal source of funding from builders comes from Section 106 agreements between the developer and the council. The agreements detail what will be provided or paid for, including new social housing, school buildings, GP surgeries, parks and transport.

The total amount of unspent Section 106 monies given to Devon County Council is £11,160,087. This includes £2.8 million designated for roads and highways; £953,519 for schools and education; and £7.3 million for ‘other’ uses.

Neil Jefferson CEO at HBF, said: “Each year developers contribute around £7 billion to local authorities for the provision of local infrastructure, affordable housing and education, recreational and health facilities, but some councils are increasingly failing to invest this cash into the services that so desperately need it.”

“Investment in new housing delivery brings unrivalled economic and social benefits to communities but too many of these advantages are going unseen by local people. With the Government desperate to find money to invest in infrastructure to drive growth, it is nonsensical to have billions sat in council bank accounts.”

"Furthermore, a lack of infrastructure provision is often cited as a reason to oppose development, yet this pipeline of billions of pounds of unspent infrastructure funding is too often underappreciated in debates about the impact of new development.

"Whilst appreciating the pressures and constraints on councils, we simply have to find a better way to ensure this money is spent promptly to benefit local communities, support local services and drive growth.”

Section 106 agreements often stipulate that they can be returned to the payee if the sums have been held too long as projects are deemed unlikely to be delivered meaning that communities do not receive all the benefits of development that local authorities have committed to. House builders very rarely track what happens to their Section 106 payments and few seek reimbursement if it is found to have gone unspent.

A DCC spokesperson said: “Section 106 can be held until we need to deliver the necessary infrastructure.”