MORE than £2.5million set aside for affordable housing, new playing fields and road improvements is sitting in council coffers, but cash-strapped bosses can’t get their hands on it.

The huge reserves are the result of Section 106 agreements – deals with developers, who agreed to pay for community schemes in return for planning permission for their own projects.

Despite council chiefs scrambling to save millions of pounds this year, they are not allowed to touch the money unless they meet the conditions usually attached to it.

Depending on the agreement, those criteria can range from a date on which the money is released to the requirement to wait until the associated development has been finished.

Jonathan Garston, the Tory councillor responsible for planning at Southend Council, said all delays were frustrating.

He added: “I am of the opinion all the money should be spent as soon as possible.

“Having said that, it’s important it is used properly and in the right places. It is better to have the money in the bank than not to have it at all and, by its nature, the money is spent to benefit the community.

“However, this is an important issue and the use of this money is something I intend to keep a close eye on.”

IN Southend, there is more than £550,000 earmarked for a range of projects.

Country & Metropolitan Homes handed over £315,000 in 2004 as part of the deal to create a new Shoebury Garrison.

More than £120,000 – most of it destined for road improvements – is still to be spent.

In 2008, the council granted permission for a new Aldi store in London Road. In return, the German supermarket chain agreed to pay £50,000 towards a new cycle route.

That money is still sitting in Southend Council’s coffers, despite Aldi having opened the store three years ago.

A council spokesman explained some payments are delayed to give the council time to draw up plans.

She said: “It is typical in instances where there is design or consultation work, or other organisations involved, for the council to have a period of five years to spend the funding, and in the meantime development is allowed to proceed. The sums will be spent by February 2015.”

BASILDON Council has the biggest pile of unused cash.

Spokesman Paul Ilett said the authority has £2million from 15 Section 106 agreements in its bank account, with £1.5million of that sum set aside for affordable housing.

Rochford Council has £151,000 waiting to be spent, while Castle Point Council’s stockpiles total £10,000.

Section 106 rules guarantee developers have to keep topping up unspent funds to ensure they are not made worthless by inflation.

But Keith Hudson, the councillor responsible for planning policy in Rochford district, said councils generally want to use the money as quickly as possible.

“It is very frustrating when Section 106 money is not used as soon as possible, because clearly it is there to help the community,” he said.

“However, there are often a number of reasons why that might be the case.

“It is not as easy as just looking at the overall picture and saying: ‘That money should be spent’.

“You need to look at each case individually.”