Alok Sharma highlights allegations that Reading borough council has, in the past, used Section 106 money - money paid by developers towards infrastructure and service provision - to plug gaps in the general budget. He calls on the PM to advise how residents can use the Localism Bill to ensure it is spent correctly in future.

Alok Sharma (Reading West) (Con): An independent investigation is due to report on allegations that Reading borough council, when last under Labour control, diverted section 106 moneys to plug gaps in the general budget, and also to fund unrelated projects. Can the Prime Minister offer any advice on how residents can make use of the Localism Bill to ensure that section 106 money is spent correctly?

The Prime Minister: I would make two points to my hon. Friend. First, the Localism Bill gives local people a greater ability to influence what happens to section 106 money. Secondly, because of the new homes bonus, councils that go ahead with building homes will get more money, so they need not feel that they must go for one huge development in order to draw in the section 106 money. It could be that a different pattern of development—one more in tune with what local people want—would deliver some of the benefits that local people want to see.

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