Bolton Council hears developers 'reneging' on 106 funding

This comes after questions at Bolton Council about developers behind large housing and building projects have “getting away” with not honouring commitments under “106 agreements.”

These agreements refer to pledges made by developers to supply money for useful community projects like parks and greenery.

Cllr Neil Maher, of Westhoughton South, said: “There have been numerous occasions in Westhoughton, and no doubt all other wards across the borough, where developers have been allowed to partially or fully renege on their promises made under Section 106, which have led to a variety of problems for the local community and has also given rise to the perception among residents that developers can get away with not honouring their commitments.

Questions were heard at Bolton Town Hall (Image: Newsquest)

“Section 106 relies on negotiation and discretion and as a result it is entirely down to the Planning Department’s ability to squeeze out as good a deal as they can get, but this is a battle that all too often ends in the developer’s favour.

“Increasingly, we are seeing developers re-negotiating the S106 after they have secured planning permission.

“In most cases, using the dark art of viability reports, they manage to prove that they can no longer afford to carry out the work set out in the S106.”

Cllr Maher asked the council leadership if they would consider different ways of raising money instead.

He asked if they would consider using the Community Infrastructure Levy, which would mean charging agreed levies at a flat rate before developments begin.

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But Bolton Council leader Cllr Nick Peel said that the Community Infrastructure Levy would mean that the opportunity to negotiate would be lost.

He said: “Section 106 is governed by legislation and the council is required to show that any funding secured is compliant and lawful.

“It also needs to be noted that when a developer enters into a 106 agreement it can only be amended with the agreement of the council and if it is refused there is no right of appeal for five years after the section 106 agreement is signed.”

He added: “Please be assured we are committed, quite naturally, to ensuring that the borough benefits from as much external funding as is possible with the planning process.”