£1.5m in planning money goes unused
A cash pot of £1.5m is waiting to be spent on projects to improve Preston, the Evening Post can reveal today.
There are also millions of pounds yet to be claimed from developers looking to build in the city because work has not yet started as they wait to see how the £800m Tithebarn scheme pans out.
The cash, brought in by legal agreements struck with developers before they are given permission to build in the city, is waiting to be spent on more than 50 projects, ranging from public transport to new CCTV coverage.
It is now sitting in the authority's account building up interest which is being ploughed back into council coffers.
Among the projects for which cash is outstanding, according to figures obtained by the Evening Post under the Freedom of Information Act, is public transport enhancements funded by a £500,000 payment from the owners of the Fishergate Shopping Centre.
Also due is £454,000 from an agreement with supermarket chain Booths, part of which is to be spent on improvements to local roads.
The figures show that, since 1990, the council collected a total of £27.3m in Section 106 agreements. It collected £2.83m last year, spent £1.3m, leaving it with a balance of £1.44m.
Nicholas Watson, joint chief executive of the Preston Chamber of Trade, said he believed the thousands of pounds being accrued in interest could be put towards preparing for the 2012 Guild celebrations.
He said: "The rules on spending this money are very tight, but rather than the interest from these balances going straight back into council coffers, I would prefer them being spent on the Guild."
Frank McKenna, chairman of business group Downtown Preston in Business, said the council should "be given a pat on the back" if the interest from accounts was being used to keep council tax down.
But, he said the authority could not expect developers to press forward with their outstanding developments until serious progress was made on the £800m Tithebarn regeneration.
The former deputy leader of Lancashire County Council said: "Someone has to make the first move on this one.If the council has 50-odd applications outstanding, it cannot expect people to get moving when they are still waiting for Tithebarn.
A council spokesman said: "Monies are only received once the development has been completed and there are still a number yet to be started, as such the monies are yet to be received.Money is ring-fenced so that it can only be spent on the improvement that it is supposed to pay for."
| Created: | 24th April 2008 |
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| Last Updated: | 30th April 2008 |
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