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News > Review of amount and use of Section 106 contributions
The government is to launch a review of the amount of 106 contributions and of unspent contributions to report in Summer 2009.
Mercury Planning verdict: This is a murky area which could do with a little daylight and sunshine. Authorities have been known to delay spending the money and using the interest for other purposes. Relying on these contributions for substantial local authority capital expenditure relies on the property market for funding, especially on inflated house prices. A return to reasonably affordable market prices for housing would have a major effect on this gravy train.