Section 106: let councils decide, by Andy Sawford

29 Jan 10
Councils should be allowed to use Section 106 money to undertake repairs and improvements to existing properties and not just to improve new developments.

Liberal Democrat MP Simon Hughes will today debate his Private Members’ Bill, an amendment to the 1990 Town and Country Planning Act, which would allow councils to use Section 106 money to undertake repairs and improvements to existing properties. Under current Whitehall rules, councils can only use Section 106 cash to provide amenities to serve new developments.

As part of a series of proposals to free up councils and communities to regenerate and improve existing social housing, the Local Government Information Unit is calling on the government to support the Bill. We argue that current regulations are far too restrictive because they prevent councils from improving existing social housing and do not allow town halls the freedom to act as they see best.

This issue has been highlighted in our report with the London Borough of Southwark. This showed that councils across the country are failing to meet the decent homes standard, in part due to the massive repayments of around £18bn they owe to the Treasury to pay for the erection of post-war social housing. In Southwark’s case these tower blocks, built to replace bomb-damaged housing and slum dwellings, are now in the process of being pulled down.

In a National Audit Office report released last week it was estimated that the decent homes standard would not be met until 2018-19. Private housing developments containing affordable housing have also slowed following the recession.

A lack of new-builds and slower-than-predicted renovations mean that other solutions are desperately needed to solve the problem of families living in uninhabitable accommodation, which contributes to further social deprivations. From educational attainment and the likelihood of gaining employment, to mental and physical health, the conditions people live in affect the rest of their lives. People need, and deserve, at least a minimum standard of living.

That’s why we are supporting Simon Hughes’ Bill. Councils should have the freedom to act to use Section 106 money as they see best for their communities. Many councils will rightly use funding from developments to improve these new communities, whilst others such as Southwark would like to be able to use some of the resources to bring existing social housing up to a habitable standard. The fundamental point is that the decision should be in the hands of local communities and not proscribed by Whitehall rules.

Britain faces the biggest social housing crisis since the 1940s with a huge shortage of homes. Many of them are crumbling and need major repairs or regeneration. Councils desperately want to improve local social housing but are seriously hampered by a combination of central government restrictions and old post-war debts. As landlords, planners, community leaders, and elected representatives, town halls should be allowed the freedom to make these decisions without interference.

Andy Sawford is chief executive of the Local Government Information Unit

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