Many Welsh councils are apparently owed money from private developers who have failed to pay them under section 106 agreements of the Town and Country Planning Act 1990.
Such agreements state that anyone with an interest in the land can enter into an agreement with a local planning authority which can involve, amongst other things, sums to be paid to that authority. This is to lessen the impact of development on a community.
However, it is reported that over half of Welsh councils are still owed money through those agreements, with bills of almost £2.3 million remaining outstanding in December 2011. Whilst the Welsh Local Government Association maintain that section 106 agreements could be renegotiated and that councils were "trying to be flexible and realistic" with developers, some councils may seek interest on late payments.
The Welsh planning system is, however, due to be changed when the Community Infrastructure Levy is used. It is a system that allows local planning authorities to raise a levy from developers developing in their area. This money will then be used directly to help fund infrastructure, such as roads and schools, in the authority's area.
Peter Cox from Cardiff Civic Society said that setting a levy would make things more transparent, adding, "It will be much easier for someone to look up and see who has got to pay what - and when have they paid it".
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