The £350m cash bonus promised for “high performing” planning authorities in Gordon Brown’s spending review could be spent on street cleaning and rubbish collection instead of planning.
The Treasury is understood to be resisting calls by the Office of the Deputy Prime Minister (ODPM) to have the cash ring-fenced for planning.
The Treasury has fought against any form of hypothecation to date, claiming that it “acts as a break to innovation and good management” in councils.
A spokesman for the ODPM said: “We would want the money to be specifically for planning.” But he added that the Treasury was unlikely to allow that to happen.
Mike Haslam, president of the Royal Town Planning Institute, said: “Even though councils will have to keep separate accounts for planning, any new money will be seen as a surplus, and could go to other services.”
The money allocated in last month’s spending review has been criticised because it will go only to local authorities that have managed to meet their targets.
Haslam added: “If local authorities are going to get more money for putting ticks in boxes, they will make sure that the boxes are ticked.
“But just because targets are met doesnt necessarily mean that the system will improve.
“Councils will be given an incentive to refuse applications rather than let them go over a target of eight or 13 weeks.”
EGi News 26/08/02
