Millions spent and millions left in developer contribution pot

A new report reveals how the many millions of pounds received from developers is being allocated to provide new infrastructure across Telford and Wrekin.

The Infrastructure Funding Statement (IFS) sets out how all financial and non-financial developer contributions have been used to provide school places, ‘affordable’ housing, road schemes, and environmental improvements.

Telford & Wrekin Council’s cabinet has been told that the council received £10.531 million in 2024-25, and secured another £3.079 million from agreements in the year. It spent £2.289 million.

It also has kept hold of another £29.431 million for agreed projects, and has another sum for longer-term maintenance. Some of this sum may have been spent during 2025 after the end of the financial year reporting period. 

The council has not had to return any money to developers during the year and says every penny has been allocated to projects even if the cash has not yet been spent.

Telford & Wrekin Council seeks developer contributions through section 106 agreements, unilateral undertakings and various other contributions, including from the local authority itself.

The report read: “To date the council’s proactive approach to monitoring S106 obligations has ensured monies are not returned.”

The money is used to provide infrastructure for new development which cannot go ahead until contributions are agreed.

Contributions can include building ‘affordable’ homes. During 2024/25 the number secured by agreements was 156, with 279 actually provided and occupied.

The report says that section 106 agreements are “prepared and signed between all interested parties, and only then can the planning decision be released.

“The obligations will only be required if the planning permission is implemented, and requested when the triggers for point of payment are reached, for example the commencement of development or prior to first occupation,” the report read.

“When planning permission is granted, the S106 agreement is registered as a land charge which stays with the land, obliging any future owners until the terms are met.”

Agreements also provided 34 school places and secured another 73 during the year.

Of the more than £2 million spent, some £194,912 went on road improvements in Station Quarter, with another £120,514 on Telford town centre connectivity.

Of the outdoor projects there was a £6,300 contribution to Telford Town Park Adventure Golf, a £17,292 contribution towards Burton Borough School 3G pitch improvements and £96,654 on new play facilities at Dale End Park, Ironbridge.

Another £37,784 went on upgrades to Severn Drive Play Area including the removal of old equipment and replacement with new equipment.

Another £37,127 went on a contribution towards the seven-classroom expansion of Lawley Village Academy, and £212,429 on improvements to Ercall Wood.

More than £267,000 was a contribution towards roofing works at The Burton Borough School and £181,576 on improvements to Millbrook Primary School classroom expansion.

Money was also spent on ‘enhancing’ the natural environment.

These schemes included £64,800 on assessing the borough’s trees and £19,310 on the creation of hedgerows at Dothill and Granville.

The council also received £47,460 for a Great Crested Newt licence, and transferred £31,478 to the Severn Gorge Community Trust from a solar farm at New Works.

Money is also used on footpath and bridleway projects, including £112,400 for improvements at Granville Country Park.

An extra £350,955 was used for bus subsidies, and £49,344 for monitoring planning obligations.

The report also points out that none of the money received through planning obligations before 2024/25 had not been allocated.

Of the £29.4 million allocated to projects but not spent yet, some £887,941 remains available for sports pitches at a 3,300-home development in Lawley.

The plan was approved in 2005 but the final section 106 agreement was not approved until 2021. Among the conditions are for seven junior-sized football pitches with changing rooms plus car and coach parking at Overdale.

Another £137,794 is available to spend on improvements to local play facilities related to a development at Audley Avenue in Newport, and £63,203 for the enhancement of children’s play facilities related to a development between Colliers Way and Park Lane, in Old Park, Telford.

Some £2,188,623.49 is yet to be spent on outdoor recreation projects including £223,054 on new sports pitches near Burton Borough School.

More than £1m is in the bank for highways projects including £104,461 for work at the Brockton Interchange.

There is also £124,666 to be spent on community facilities, including £43,615 for CCTV cameras along Nedge Lane.

£5,260,105 is available to spend on strategic highways projects including £536,362 for junction improvements near to Haygate Road and £1,237,480 available for junction four of the M54.

Some £286,456 of money for transport is also in the bank, and £1,907,120 has been provided for affordable housing, with the vast majority of it allocated to Newport.

A huge £16,422,601 for education projects had yet to be spent including £7,002,944 for a new primary school at Priorslee and another £1,906,290 for facilities at Millbrook Primary School and Charlton School.

Ecology contributions of £816,658 are also yet to be spent including £46,042 on improvement and maintenance of Dothill nature reserve.

There is also £164,654 to spend on public rights of way, including £49,372 on improving footpaths around Apley Pool.

Money has also been allocated for trees with £265,887 of the total of £747,578 earmarked for maintenance at Redhill Ecological Park.