Is Waverley Council Playing with Fire? The Controversy Over Hidden Infrastructure Funds

Tensions have ignited at Waverley Borough Council as Conservative councillors accuse the council of using funds from community projects as a covert revenue stream. These funds, generated from the Community Infrastructure Levies (CIL) and Section 106 (S106) agreements, are typically dedicated to crucial infrastructure development like schools and roads but are instead flowing into the council’s general fund, which supports various local services. Jane Austin, the Conservative leader, argues that this practice obscures the true financial health of the council, suggesting that other local authorities have rightfully opted to earmark these funds strictly for infrastructure.

In contrast, the Liberal Democrats, who form the governing coalition, defend the council’s management of these funds as responsible and compliant with national norms. They emphasize that the garnered interest from CIL and S106 funds is reinvested into community services, underscoring its significance in maintaining the council’s financial stability.

As of March 31, 2025, Waverley Borough Council reported having £28.3 million in unspent CIL and S106 funds, a significant sum for this authority, raising questions about their allocation and usage. The council plans to establish a cross-party working group to reassess CIL practices, especially after residents faced hefty fees for home improvements while lacking an appeal option.

While Ms. Austin warns of a potential financial ‘black hole’ without these funds, the council counterclaims its status as one of the most financially stable local authorities in Surrey. Despite ongoing debates, with £2.1 million of the £27.5 million collected already spent and £15.2 million earmarked for infrastructure projects, the council maintains a commitment to balancing its budget responsibly, irrespective of its interest earnings. The future of Waverley’s financial strategy hangs in the balance as scrutiny over local government practices sharpens.