STORY
Tower Hamlets Council is facing renewed scrutiny over the pace at which money collected from property developers is being spent on local infrastructure. Financial Times analysis found that developers have contributed about £269.3 million through Section 106 agreements, with 54% of that money spent, while the borough has collected £179.8 million through the Community Infrastructure Levy since 2015 and spent £65.1 million.
The figures have prompted criticism as the east London borough continues to experience rapid development around areas including Canary Wharf. One focus is the proposed South Dock Bridge, intended to improve pedestrian access in the area, which remains unbuilt after years of planning. The project has incurred about £2.3 million in planning costs and its expected cost has risen by around a quarter to £25 million, according to the report.
Tower Hamlets said much of the money that has not yet been spent is already allocated to projects and that infrastructure expenditure depends on construction programmes and delivery schedules. Section 106 agreements and the Community Infrastructure Levy are intended to ensure that development contributes towards facilities and infrastructure needed by growing communities. The council publishes annual statements setting out receipts and expenditure from both funding mechanisms.