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Section 106 contributions from developers continue to play a major role in funding community and infrastructure development in Tower Hamlets, explains David Williams. It is the classic Robin Hood tale of taking from the rich to give to the poor. But this one comes with a modern twist. Tower Hamlets LBC is one of the country's leading boroughs in securing Section 106 contributions from developers to finance a wide range – and long list – of community and infrastructure benefits in one of London's most deprived boroughs. Home to London's vibrant East End and the high-powered banking area of Canary Wharf, Tower Hamlets certainly attracts the interests of developers. But this interest alone hasn't guaranteed our Section 106 success. It has taken a determined decision to embrace growth – and without this positive approach, we wouldn't be able to attract the developers. Section 106 contributions have become an important source of funding for the council – with almost £40m of projects on the go or being planned, and another £250m secured and due for future delivery. The money we've secured over the years has supported a wide range of projects and fundamental pieces of infrastructure, such as stations and roads, new open spaces and public realm improvements, new schools and heath centres, contributions towards London's transport infrastructure, conservation projects, employment and enterprise projects... the list goes on. However, one of the most significant forces behind our success has been the need to deliver affordable housing. The most crucial part of our negotiations with developers centres on this need, and we greatly value contributions towards affordable housing. Although we learned how to embrace development and negotiate – and were eager to secure the money – we didn't realise the pressure this was going to create a bit further down the track. We soon realised that it was not enough just to have the money coming in. We needed to develop some sophisticated processes to manage the payments and monitor the hundreds of legal agreements we were now responsible for. We invested a lot of time and energy into creating these processes which now allow us to track the money, so we don't mis-allocate resources or miss payments which are due to us. Specific positions were created to manage the process, and these are funded by Section 106 funds, allowing Section 106 to remain cost-neutral to the local authority. These staff members develop databases, monitor the schemes, and enforce the legal agreements. They intentionally link in with colleagues from the council's finance and legal teams on a consistent basis, to make sure the process is working and everyone is kept up-to-date. We're currently responsible for around £40m, which is being programme managed by a range of directorates across the council and outside organisations. We rely on and support the capacity of these other groups to help us get the money out of the door and get projects under way. We're developing legal and service agreements with these external parties to ensure they specifically spend the money on what we need it spent on, and within set timeframes. Still, the greatest lesson we have learned is the need to consult with local people as soon as possible. It is important for residents to understand the scale of the development that is being proposed for their area, but also what their area might receive in return by way of Section 106 funding. One of the best ways this can be done is through the framework of a masterplan, so they can see how the development and Section 106 projects will be phased over time. Building this relationship and trust with the community hasn't always been easy. People are keen for the benefits of Section 106, but we've had to take time to explain that there will also be impacts from the new developments that come hand-in-hand with these benefits. We have relied heavily on the council's communications team to tell the story around Section 106, and the relationship between growth and improvements. Tower Hamlets has certainly benefited from Section 106 contributions, and the community will enjoy many more positive schemes in the years to come. But, managing such a large programme has taken time, strategy and communication to ensure all the pieces of the jigsaw fit together to create a valuable financial tool for the council. David Williams is development manager at Tower Hamlets LBC

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WHITEHALL

The pipeline is still running

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