Luton council agrees independent investigation into uncollected developer cash
The leader of Luton Borough Council has said it was “worrying that were systematic failings” with the local authority’s procedures in securing planning contributions for development in the town.
An investigation is being organised by the council to establish the facts, which its external auditor Grant Thornton UK is due to lead.
A report to the council’s scrutiny finance review group last night (Monday, October 26) presented an update on its management of Section 106 planning obligations, including the recovery of historic unpaid financial contributions.
The document “set out the significant progress made in identifying and recovering outstanding legal contributions, together with the improvements being implemented to strengthen governance, financial oversight, monitoring and management of planning obligations”.
In a statement to the local democracy reporting service after the meeting, council leader and Liberal Democrat Barnfield councillor Amjid Ali said: “It’s worrying to find there’ve been systematic failings with the Section 106 collections.
“These Section 106 obligations are put in place to mitigate some of the impact of developments within Luton. And these contributions rightfully belong to the people of Luton.
“I’ve made it clear to the council’s chief executive and am satisfied that the scope of the investigation into this will provide a transparent outcome. We need to scope out and get to the real figure of how much is owed to Luton residents.
“I’m hopeful that the situation will be much more clear during the next month or so. In addition, I hope the council will be in a position to answer many of the questions being asked this evening.”
Section 106 planning obligations are used to mitigate the impacts of development, according to a report to the review group.
This provides an important source of funding for infrastructure and other measures required to support sustainable development and local communities, explained the report.
“Effective management of these obligations is essential to ensure that any financial contributions secured through the planning process are collected when they become due, accurately recorded, allocated for their intended purposes and spent within relevant timescales.”
Asked about the investigation at the review group meeting, LBC’s service director of finance Julie Lorraine said: “It’s for the auditors to determine how many days it’s going to take them and when you can expect to see that report back.
“The scope of the investigation has been discussed and agreed with the monitoring officer. It does pick up some of the points (Liberal Democrat Barnfield) councillor David Franks has raised.
“There are three specific areas to be covered, whether or not an alleged instruction was given, denied by the planning team, which will be independently looked at (whether or not to collect amounts under £10,000), the reasons for the liabilities accumulating, and the delay in reporting the matter to the scrutiny finance review group.
“I think the council is taking very seriously the need for transparency, acting swiftly and I’m sure members will be satisfied that a thorough transparent investigation will take place by an independent suitably qualified organisation.”