Elsenham Parish Council considers legal action against Uttlesford District Council over ‘misplaced’ community centre funds
Parish and district council bosses are locked in a war of words over accusations that money was misplaced for a new community centre in Elsenham.
Parish councillors are seeking legal advice over possible “mismanagement of funds” as it bids to progress its plans.
According to Elsenham Parish Council, Uttlesford District Council (UDC) is not able to identify where the interest it gained on the funding for the new community centre in Elsenham is after it “put the money into a general pot”.
But the authority has hit back, saying it is keeping hold of the money as it always does with all Section 106 planning agreements and that “the sums are all accounted for.”
The row comes as the parish council is drawing up plans for the new centre, which will include a hall, community café, changing rooms and office for the parish clerk. The council has been seeking an architect for its new £1.5-£2 million community centre, with applications closing in July.
The project will redevelop a site it owns next to the playing field car park on Southfield Close, off the B1051 Stansted Road.
It is to be funded by contributions from a series of building developments together with other grant funding and potential borrowing from the debt management office, formerly the public works loan board. The parish council claims the interest on the funding, from the developers, is not being located and or handed over by the district council.
The minutes from the parish council meeting, in September, state: “Uttlesford Council stated in its reply to Elsenham Parish Council’s freedom of information request, they did not know how much interest had accrued on the section 106 money they were holding for the building of the community centre, Uttlesford Council had put the money into a general pot and it could no longer be identified.
“The parish council sent a letter to Richard Buxton Solicitors setting out the issues the parish council have undergone with Uttlesford regarding the section 106 payments and the freedom of information request. Susy Gandy had answered on behalf of Richard Buxton Solicitors saying that she thought the parish council has a case for claiming the interest that has occurred on the section 106 money since being paid to Uttlesford Council. (Cllr) Graham Mott proposed that Richard Buxton Solicitors send a letter to Uttersford Council setting out their case at a cost of up to £520.“
The vote was carried unanimously and it was agreed to address the letter to UDC chief executive, Peter Holt. The minutes continued: “Graham Mott asked Susy Gandy if Uttlesford Council is entitled to hold onto the funds, releasing specific amounts on request. Susy Gandy’s answer was yes, they can, unless it contravenes any separate agreement the parish council have with them. Susy did think however, the parish council and Uttlesford Council needs to meet to agree what is going to happen next, and how, to enable the centre to be delivered.
“Uttlesford Council needs an agreed plan in place to enable both parties to identify when and how much the staged payments should be. The interest on the section 106 payments by April 2025 would amount to approximately £78,000. There are many variances which could change the final figure.”
Elsenham Parish Council also reported that the Information Commissions Office thought it had “good grounds on the freedom of information point of view”.
Said the minutes: “If Uttlesford Council could not find where the funds had been placed or how much interest had accrued, Uttlesford could be accused of mismanagement of funds. First however, the parish council must complain to Uttlesford Council setting out what the parish council had asked for and what they had received. This requirement would be covered by sending the solicitor’s letter.”
A spokesman for UDC said: “[The] council has received a series of planning obligation payments from developers for the construction of a new community facility in Elsenham. It is holding the money in a general account, as it does with all such monies received as part of planning obligations. The sums are all accounted for.
“Uttlesford has a legal obligation to ensure the money is spent on a community facility and will do so. Officers have written to Elsenham Parish Council on this matter.”
