Dudley Council has millions of pounds stashed for community improvement including cash which has been languishing in its coffers for more than ten years.
Information obtained under the Freedom of Information Act by the Local Democracy Reporting Service revealed, as of May 27th 2025, the council had £2.7m in unspent contributions from developers as part of planning conditions for approved projects.
This money, which is a sum negotiated as part of the planning permission process, was paid under Section 106 of the Town and Country Planning Act to overcome the negative impact of new developments.
On the same date the council also had £667,000 salted away from the Community Infrastructure Levy (CIL) which is fixed amounts paid by developers for improvements to where they are building new homes.
The Home Builders Federation, which represents developers, says while it understands funds cannot be spent immediately, nationally there are billions of pounds sitting in council bank accounts which could be spent on new roads, schools and open spaces
Cllr Adam Aston, Dudley’s Labour opposition leader, said: “Whilst I appreciate that a certain amount of Section 106 and CIL money may be earmarked for specific projects, I am concerned that well over £3 million is unspent in our borough.
“This cash is intended to mitigate against the impact of a development on a local area and improve community infrastructure as well as supporting smaller community projects, there is a real danger of communities losing faith in the planning system if they see no benefit as a result of development.
“I support the call for greater transparency nationally, particularly on Section 106 money. Let’s get it spent!”
Generally S106 agreements have a time limit for councils to spend the cash, however builders rarely claim the money back. Despite time limits it is not unusual for councils to hoard money for many years - and Dudley is no exception.
The council has £1m from developments approved between five and ten years ago plus £804,488 which is still to be spent from projects it gave the go-ahead for more than ten years ago.
Councillor Damian Corfield, Dudley cabinet member for neighbourhoods, said: “The money we receive through Section 106 payments or via the Community Infrastructure Levy (CIL) from a project is rarely sufficient to fund the kind of scheme that would benefit a whole community.
“Therefore it follows that there has to be a natural inevitable delay while we await further contributions, which we can then pool together and spend appropriately.
“A good example of this is at Wordsley Park, where we have combined a number of payments together to fund a £25,000 improvement scheme there which has been welcomed by residents and will benefit everyone who uses it.
“We believe this approach is a smart use of the money we receive.”
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