Conservative Claims on Use of CIL Payments ‘Political Theatre’ Say Lib Dems

Published on: 29 May, 2025
Updated on: 29 May, 2025

By Martin Giles

Conservative councillors at Waverley Borough Council (WBC) are demanding answers from the council’s Liberal Democrat-led Executive over the use of the estimated £2.9 million of interest income generated from unspent Community Infrastructure Levy (CIL) and Section 106 (s106)
funds over the past five years.

CIL payments have become a contentious issue in Waverley, where some residents are facing demands for payment of tens or even hundreds of thousands of pounds because they were unaware of the need to complete the paperwork needed to claim an exemption.

Excerpt from Private Eye’s Rotten Boroughs column

So far, over 20 homeowners across the borough have reported being aggressively pursued for high CIL levies, which they say should not have been charged, causing significant emotional and financial strain. The issue has been included as the lead story in this week’s Private Eye “Rotten Boroughs” column.

Sources within WBC have told The Guildford Dragon NEWS that the CIL payments issue was not well handled by some senior council officers, progress has been too slow and a resolution, with due reimbursement to those residents affected, has not been reached as quickly as expected by the WBC Executive. It is anticipated that any reimbursements might still take around two months.

Now Conservative councillors say WBC has confirmed that  interest earned on infrastructure funds has been diverted into the council’s General Fund and not reserved for the infrastructure projects those funds were collected to support.

Cllr Jane Austin

Cllr Jane Austin (Con, Bramley & Wonersh), leader of the opposition at WBC, said: “Interest earned on CIL and s106 funds has quietly become a hidden revenue stream for the council.

“In the year to March 2025, Waverley is projecting a surplus of £428,000 – but this includes over £1.36 million in estimated interest from CIL and s106 money. Without that, the council would be facing a deficit of more than £900,000. That’s a huge black hole.

“Meanwhile, £28 million sits in the council’s bank account, with over £10 million in unallocated CIL funds. Perhaps now we understand why. Residents want this money spent on infrastructure, not left to accumulate interest to support the council’s day-to-day operations.”

But the Lib Dems at WBC emphatically rejected the Conservative claims saying: “This is not fiscal responsibility – it’s political theatre. If the Conservatives truly cared about infrastructure, they would focus on fixing the broken systems they left behind, not peddling myths from the sidelines.”

Cllr Paul Follows

Responding to the Tory claims as leader of WBC, Paul Follows said: “It is standard practice for Community Infrastructure Levy (CIL) and Section 106 (S106) funds to be allocated to specific infrastructure projects and held by the council until they need to be paid for.

“These projects typically require extensive planning and can take several months or even years to complete. For instance, Surrey County Council currently holds approximately £25 million in unspent S106 contributions from our borough.

“All funds held by the council are managed in accordance with our approved treasury management strategy. This ensures that they generate interest, in line with our statutory responsibility to secure best value for public money. Any interest earned is retained within the council’s General Fund and is reinvested into local services and the enhancement of public amenities.

“I’d like to thank Cllr Austin for helping to highlight the excellent work we’re doing in this area.”

In a separate statement, the Lib Dems criticised the Conservatives for being “misleading” adding that their claim “reveals a serious misunderstanding of the Community Infrastructure Levy (CIL) process and the scale of investment needed after years of their own neglect.

“To be clear: not a single penny of the original CIL or s106 contributions has been diverted. These funds are ring-fenced for major infrastructure – roads, healthcare, schools – projects that often require millions and take years to deliver. Interest earned in the interim is managed responsibly and in line with national guidance, a standard practice across councils.

“The real problem is that infrastructure delivery relies heavily on Surrey County Council and the NHS, both of which have repeatedly failed to submit the costed, deliverable proposals required to unlock funding. Waverley cannot allocate funds to projects that don’t exist.

“The Conservatives’ sudden concern over CIL disputes is disingenuous – they created this system. We are addressing legacy issues transparently and within the law.”

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