Communities missing out on cash from developers because of council delays

A shortage of staff to get capital projects up and running was blamed

A “significant portion” of cash from property developers for new infrastructure was given back to them after council delays. Money set aside to help pay for transport projects like new pedestrian crossings had to be paid back to developers, because it wasn’t spent quickly enough.

Developers have to pay councils to offset the cost of the extra demand on infrastructure, in a rule known as Section 106. This includes paying towards parks and schools. But because Bristol City Council hasn’t been spending this money within certain deadlines, some is returned.

An internal audit found that there were delays in spending Section 106 promptly. Councillors on the audit committee grilled council bosses about the delays on Tuesday, October 1, who blamed a recruitment freeze and staff shortage.

Alex Hearn, director of economy and place, said: “This is a service that went through a very difficult period in relation to a loss of capacity. It’s now being restructured and fundamentally rebuilt, particularly around its ability to deliver capital projects.

“If funds aren’t used within a certain time, then there is the possibility that they can be reclaimed by the applicant, which is why it’s important that we show improvement.”

Mr Hearn was asked how much money has been given back to developers, but did not answer during the meeting, instead promising to reply in writing at a later date. He added that the issue had “come up a lot” since he joined the council in June last year.

Liberal Democrat Councillor Nicholas Coombes, vice-chair of the committee, said: “This is quite concerning. Money that was legally required to offset negative impacts of development has not been spent. Therefore those negative impacts are sustained by our communities.”

An example is Canford Lane is Westbury-on-Trym, a busy road where residents have been campaigning for seven years for a pedestrian crossing. Funding for the project was at risk last year, after inflation issues. Delays affect similar projects in other parts of Bristol too.

Conservative Cllr John Hucker added: “Back in November 2021, area committee six approved £60,000 for road safety improvements in my ward [Stockwood]. We still haven’t got any indication yet when that project is going to be delivered.

“Obviously inflation would have an impact between the time when the funding was approved and when the project will finally be delivered. I’m concerned that the effects of inflation over that time might mean that the project is not fully funded.”