Leicester hospital trust in court row with council over funding

The row centres on the Lutterworth East development

An NHS trust has taken a local council to court over the way it allocated funding from a development.

University Hospitals of Leicester NHS Trust has taken Harborough District Council to a judicial review at the High Court in London in connection with a site called Lutterworth East.

The row relates to a Section 106 agreement developers pay to local authorities to support the developments they build.

The written judgement is due shortly.

Developers pay Section 106 agreements and Community Infrastructure Levies (CILs) as part of planning permission they agree with authorities, with the payment intended to support things like new roads, education and health facilities required by the new community.

The two-day hearing heard the trust had asked for Section 106 cash of up to £1m to cover costs for medical services at the Lutterworth East development.

'Hot air'

The site - which includes 2,750 homes, two schools and warehousing - is being developed by Leicestershire County Council.

The trust asked the council to reflect this in the agreement it struck with the developers.

Harborough District Council said it had considered the request but was not able to accommodate it as funding regulations stood.

During the hearing, problems arose in establishing exactly what contracts the local NHS were already committed to and how funding was being projected.

The judge, Mr Justice Holgate, said: "There is an allowance for population growth, but no-one knows exactly what it is - after all this hot air."

After the two-day hearing, he said he would reserve his judgement.

The parties involved expect a written statement from him in the coming days.