MPs are set to be alerted to £5.3bn in unspent developer contributions currently held in local authority bank accounts, according to a new report from the Urban Mobility Partnership.
The research focuses on funds collected through Section 106 agreements, payments made by developers to mitigate the impact of new developments on local infrastructure and communities.
The group says the money could be used to support transport improvements, public realm projects and other local infrastructure without requiring new taxation or borrowing.
Analysis based on Freedom of Information requests and council accounts found significant sums sitting unused, with at least £700m earmarked specifically for transport schemes such as cycling routes, bus infrastructure and road improvements.
The report calls on the UK Government to provide targeted support to help councils self-audit their Section 106 accounts and recoup funds from stalled projects.
It also urges the Government to clarify guidance and allow greater flexibility for councils to reallocate funds where projects stall.
Julian Scriven, chair of the Urban Mobility Partnership and managing director of Brompton Bike Hire said the amount of unspent Section 106 money was ‘truly astonishing’.
‘This money is not hypothetical – it already exists and wouldn’t require a single penny of extra tax. Spending it better and faster does not require new taxes or an Act of Parliament. As our report shows, a handful of common-sense clarifications to central government guidance could unlock billions for local infrastructure almost immediately,’ he said.
