William Eichler 24 October 2018

Councils sitting on £443m of infrastructure funds

Councils sitting on £443m of infrastructure funds image

Local authorities in England and Wales are sitting on £443m that should be invested in local infrastructure, a freedom of information request has revealed.

FOIs sent out by the Association for Consultancy and Engineering (ACE) show that two fifths (40%) of the receipts from a levy on property developers meant for local infrastructure improvements remains unspent by councils.

The Community Infrastructure Levy (CIL) was introduced in 2010 to help local authorities meet the impact of property developments in their areas. The revenue raised enables them to, for example, build transport links or new schools.

However, ACE have found that despite raising £1.1bn using this levy, councils are sitting on £443m rather than investing in infrastructure improvements.

The research also shows that across the board, take-up of the levy remains poor, with only 43% of councils in England and Wales (148 out of 348) choosing to implement it.

‘While councils are deciding not to implement the levy, or sitting on the funds raised, local infrastructure is bearing the brunt of increased strain whenever new homes or retail developments are green-lit,’ said ACE chief executive Hannah Vickers.

‘This means more cars on our local roads, more pupils in our crowded schools and longer waiting lists at the GP. Given the current financial demands on councils this is surprising state of affairs.

‘It’s clear that the original intention of the levy as a means of fairly raising money for supporting infrastructure is failing. The upcoming Budget is an opportunity for the Government to address this imbalance and put in place a system which is simple and transparent. At the moment the system is failing old and new residents alike.’

In competition with the PWLB image

In competition with the PWLB

Christian Wall considers what alternative funding channels are available to local authorities beyond the Public Works Loan Board.
Highways jobs

Children's Services Social Worker - ASYE Programme

Royal Borough of Greenwich
£28,215 - £34,130
You’ll need to demonstrate an interest in working with children and their families, and show us that you can manage the... Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Head of Property and Facilities

Essex County Council
Up to £74K
This role is part of the Capital Investment and Delivery leadership team and has a key role to play in shaping and... Chelmsford, Essex
Recuriter: Essex County Council

Street Population Coordinator

Brent Council
£31,548 - £33,291 p.a. inc.
The ideal candidate will able to demonstrate substantial experience of face to face delivery of services to rough... Wembley, London (Greater)
Recuriter: Brent Council

Mortuary Support Assistant

Brent Council
£33,291 - £35,724 p.a. inc.
As a Human Tissue Authority licensed establishment we have strict legal guidance and procedures and... Wembley, London (Greater)
Recuriter: Brent Council

Accelerated Support Team Manager

Brent Council
£51,450 - £54,597 p.a. inc.
The post holder will be a qualified Social Worker with a proven track record and experience of managing a similar sized... Wembley, London (Greater)
Recuriter: Brent Council

Local Government News

Latest issue - Local Goverrnemnt News

The March issue of Local Government News explores alternative funding channels that are available to councils beyond the Public Works Loan Board, what hurdles merging councils face in coming together, and how local government is handling GDPR.

This issue also has a special highways and street lighting section exploring how councils can use lighting to embark on their smart city journey and using IoT technology to weather the storm.

Register for your free magazine