Councillor Lee Watson, as Portfolio Holder for Good Growth, presented the Report.

It was reported that since 2016, the Council’s internal governance arrangements regarding the use of Section 106 have not been effectively implemented. This was highlighted in the 2023 Planning Advisory Review as a risk to Thurrock Council. This review found that the potential for development contributions/planning obligations through Section 106 agreements were being compromised, with the contributions received under-utilised, due to the lack of a strategic approach to investment via this route.

The following key points were noted and discussed:

·       The latest position with respect to Section 106 receipts stood at: 

o   Total in pot £12,688,683 

o   Committed £11,042,919 

o   Uncommitted £1,625,765 

• Members were advised meetings were being arranged with Forum chairs and a report would be produced showing how much Section 106 monies were in that ward, how much had been committed to a certain project, how much had been spent and how much was ready to be spent.  This information will then be provided to ward members.

• Members were advised and noted that a Board had been set up, with internal Directors and Officers to review the process of how the Section 106 monies were being allocated and spent.

• Members asked for clarification of the term “committed”.  It was queried if a scheme was approved but did not go ahead, although they had committed the money, the Council would not receive this money if the scheme failed to proceed.  Therefore, was the money only classed as committed when it was in the council’s possession.  Clarification was given to the members.

Action Point a breakdown to be brought back to committee, on a quarterly basis, for scrutiny showing what the projects were and how much had been allocated to each project.

• Members asked what were the legal requirements of where committed Section 106 money should be spent.  The Chief Planning Officer explained this would depend on what was written in the Section 106 Agreement and how this was defined.  If the description of where monies should be spent was specifically defined, then the monies could not be spent on anything else.

• Members asked if monies that were committed were earning interest if they were unspent.

Action point the Portfolio Holder would liaise with the finance team and advised she would bring this information back to committee.

At 19.48 the Assistant Director Counter Fraud, Enforcement and Community Safety left the meeting.

The Chair agreed a councillor sitting in the public gallery could ask a question. 

• Councillor Jones enquired, how long did unspent money sit in the Council’s bank accounts if the project that it had been allocated to was no longer required and could this money be reallocated within the ward.  The Chief Planning Officer explained everything was defined within the Section 106 agreement and if the Council wanted to repurpose the monies, this would have to be agreed with the developer and must follow a legal process.

• The Chief Planning Officer explained every endeavour was made to negotiate a flexible Section 106 Agreement but advised there were strict legal constraints that were rigid and had to stay within the legal parameters of the Act.

• Members enquired how they feed into the board that had been set up to review Section 106 monies.  The Portfolio Holder agreed minutes of the Board Meetings could be shared with ward members.  It was advised the first meeting to look at allocations would be held on 26 September 2024.

• Members discussed whether a Task and Finish Group should be set up to discuss this further.  It was agreed that at the present time the committee were satisfied with the information being given to them and would decide at a later date if a Task and Finish Group would be needed.

• Members agreed that updated information should be provided to the committee on a quarterly basis.

RESOLVED:

1.     The Membership approved the proposed Thurrock Strategic Infrastructure Board arrangements.

2.     The Membership approved the draft Terms of Reference (Appendix A to the Agenda).