In October’s Vale Matters column, Councillor Craig Reeves, who represents Harvington and Norton as an independent, explains the background of Section 106 funding and why it comes with strings attached.
By Councillor Craig Reeves
Why spend money on a bridge when the town centre is full of empty shops? Why build a cycle path when potholes go unfixed?
I’d like to delve a little into how these questions capture a frustration, and why some projects appear to get funding, whilst other concerns seem to stall.
It’s important to understand that public money isn’t always money that our councils can spend on whatever they want.
Back in May this year, Wychavon announced during a full council meeting that there is about £15m in reserves, ring-fenced as Section 106 funding.
This is money paid by developers when housing estates or commercial sites are built and a legal requirement under the Town and Country Planning Act 1990.
The concept offsets the strain that new developments put on local infrastructure. More houses mean more cars, more school places, more GP appointments, and more pressure on leisure and community spaces. Section 106 is designed to help balance that out.
Councillor Craig Reeves outside Evesham’s controversial Riverside Shopping Centre. s
But it comes with a catch, as the money is ring-fenced. Each pound is allocated to a specific purpose – healthcare, education, transport, sports provision, community facilities, and cannot simply be re-allocated.
So when the public reads about the proposed Hampton Bridge or a new cycle route, it isn’t a case that these projects take precedence over other concerns. Its timeline and costs are interwoven with the developers funding contribution.
So why do we have this complex, legally complicated system? Well, it prevents backhanders and brown envelope deals.
Developers can’t hand a cheque to the local football club unless there’s a proven need. They can’t drop a lump sum into the high street without evidence. It’s directly linked to the impact of their development.
That need is tested against evidence and data at the planning stage by officers and each sum is attributed to each need.
Locally, we’ve already seen these funds at work. Evesham’s Velo Park, Evesham Football Club’s 3G pitch, NHS facilities, and local schools have all benefited.
Upcoming projects of scale include the Greenway project, connecting Common Road through to The Valley and to Norton and Harvington, and yes, the controversial Hampton Bridge.
There is further haste for want of getting these projects off the ground and spent within the community. If Section 106 money isn’t used within seven years, a developer can claw it back.
That means rejecting a project doesn’t free up cash for something better. More often, it means the money simply disappears. This is why it matters to delve a little deeper, beyond the headlines.
When people argue ‘fix the potholes instead,’ or ‘support the high street first,’ it’s sometimes not a choice.
If we’re not careful, in trying to block one community project, we may see our community lose out on investment all together.
Each application on the Wychavon planning portal requiring contributions has a report that details where funds are allocated, so do take a look at the applications within your area.
Visit here for further information on Section 106 funds.
