Hillingdon Council Cabinet Member and Officer Decisions
New Allocation of S106 Contributions 2025/26: Construction and Employment Training Coordination and Delivery
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Democratic Services
Location: Phase II
Ext: 0185
DDI: 01895 250185
CMD No: 1612
To: COUNCILLOR EDDIE LAVERY
CABINET MEMBER FOR FINANCE &
TRANSFORMATION
c.c. All Members of the Residents’ Services Select
Committee
c.c. Dan Kennedy – Corporate Director of Residents
Services
c.c. Sam Robins/ Nicola Wyatt – Residents Services
Date: 23 January 2026
Non-Key Decision request Form D
New Allocation of S106 Contribution 2025/26: Construction and
Employment Training Coordination and Delivery
Dear Cabinet Members,
Attached is a report requesting that a decision be made by you as an individual Cabinet
Member. Democratic Services confirm that this is not a key decision, as such, the Local
Authorities (Executive Arrangements) (Meetings and Access to Information) (England)
Regulations 2012 notice period does not apply.
You should take a decision on or after Monday 02 February 2026 in order to meet
Constitutional requirements about publication of decisions that are to be made. You may
wish to discuss the report with the Corporate Director before it is made. Please indicate your
decision on the duplicate memo supplied and return it to me when you have made your
decision. I will then arrange for the formal notice of decision to be published.
Liz Penny
Democratic Services
Title of Report: New Allocation of S106 Contribution 2025/26: Construction and Employment
Training Coordination and Delivery
Decision made:
Reasons for your decision: (e.g. as stated in report)
Alternatives considered and rejected: (e.g. as stated in report)
Signed ……………………………………………………… Date……………………..
Cabinet Member for Finance & Transformation
Cabinet Member Report – 23 January 2026 Page 1
(Part 1 - Public)
New Allocation of S106 Contribution 2025/26: Construction and
Employment Training Coordination and Delivery
Cabinet Member &
Portfolio
Cllr Eddie Lavery – Cabinet Member for Finance & Transformation
Responsible Officer Daniel Kennedy, Corporate Director for Residents Services
Report Author &
Directorate
Sam Robins/ Nicola Wyatt, Residents Services Directorate
Papers with report None
HEADLINES
Summary
To seek approval to allocate and spend relevant S106 contributions
received and held by the Council pursuant to agreements under s.106
Town and Country Planning Act 1990 (“ s.106”) for the following
purposes:
• A maximum of £80,848 for funding a temporary extension to
the Council’s existing contract with its construction training and
employment provider (Qualify Me) to cover the period until a
proposed break in contract.
• A maximum of £2 47,500 for the Regeneration and Economic
Development Team to cover the costs of coordinating ,
delivering and reporting on construction and employment
training over a 24-month period.
Putting our Residents
First
Delivering on the
Council Strategy 2022 -
2026
This report supports our ambition for residents / the Council of:
Have opportunities to earn an income that supports their families
This report supports our commitments to residents of:
A Thriving Economy
Financial Cost This report seeks to allocate and spend £328,348 from identified S106
contributions held by the Council for the reasons outlined in this
report.
Select Committee Residents’ Services
Ward(s) All
Cabinet Member Report – 23 January 2026 Page 2
Part I - Public
RECOMMENDATIONS
That the Cabinet Member for Finance and Transformation, agrees the allocation and spend
of S106 construction training contributions listed in Appendix A as follows:
1) A maximum of £80,848 for funding a temporary extension to the Council’s existing
provider (Qualify Me) to cover the period until the break in contract. This is required
to maintain the co- ordination, monitoring and reporting of construction training in
line with existing S106 planning agreements up until the proposed break in contract.
If the full amount is not spent , it be agreed that any remaining balance will be
allocated and spent on delivery of construction training schemes.
2) A maximum of £247,500 for the Regeneration and Economic Development Team for
directly coordinating, delivering and reporting on construction and employment
training over a 24-month period commencing FY26/27.
Reasons for recommendations
In accordance with the Council Constitution, the allocation of contributions received under Section
106 of the Town and Country Planning Act 1990 (S106) is required to be formally approved by
the Cabinet Member for Finance on a case-by-case basis.
This report recommends that the Council take a new approach to delivering the construction and
employment training and skills committed to via S106 legal agreements on new development. At
present, part of the co-ordination, monitoring and reporting of construction training is provided by
an external consultant employed by the Council. The new approach is to have this fully brought
within the Council with the aim of delivering better value for money, greater control and improved
delivery. This approach aligns with expanding the service in collaboration with key local partners,
including developers and large employers . The amount required for the Regeneration and
Economic Development Team to directly coordinate, delive r and report on construction and
employment training has been estimated at £247,500 for a 24-month period (£123,750 annually).
It is necessary however to maintain the co- ordination, monitoring and reporting of construction
training in line with existing S106 legal agreements, noting that this relates to some schemes that
are currently ongoing and providing training to individuals . Therefore, a request for £80,848 for
funding a temporary extension to the Council’s existing provider (Qualify Me) is made to cover
the period until the proposed break in contract. The contractual break clause in the contract with
Qualify Me will be utilised, subject to this Cabinet Member decision being approved to allow
construction training to be delivered directly by the Council’s Regeneration and Economic
Development Team.
Alternative options considered / risk management
The Cabinet Member may agree to fund the scheme and / or suggest alternative projects to which
funds could be allocated within the terms of the relevant legal agreements. If the S106
contributions are not allocated to an appropriate scheme, the unspent funds will eventually need
to be refunded in accordance with the terms of the s.106 legal agreements.
The main alternative option at this stage would be to simply continue the Qualify Me contract for
an extended period and not bring the service in- house. However, this option would mean the
Council miss ing out on a significant opportunity to create an in- house service which is more
targeted to Council priorities, cost-effective and flexible. The new proposed approach will be able
to take a more strategic approach to building relationships and delivery partnerships with local
Cabinet Member Report – 23 January 2026 Page 3
Part I - Public
organisations than is currently happening under the outsourced approach, delivering a more
bespoke service and opening up the possibility of leveraging additional external funding.
Democratic compliance / previous authority
The Cabinet Member for Finance & Transformation has the delegated authority to allocate funds
from planning obligation monies.
A previous Cabinet Member report submitted March 2025 (Ref 1356) allocated £114,000
(£57,000 per annum for 24/25 and 25/26) S106 funding to the Regeneration and Economic
Development Team core budget for Officers to support the coordination only of construction
training work placements in the Borough . The new proposed funding is for the period after this
(commencing FY26/27) rather than in addition to it. The proposed uplift reflects the fact the work
undertaken by the existing provider (Qualify Me) will be brought within the Regeneration and
Economic Development Team and this expenditure ended.
Both the Cabinet Member for C hildren, Families and Education and the Cabinet Member for
Planning, Housing & Economic Growth have been consulted and endorse the proposal.
Select Committee comments
None at this stage.
SUPPORTING INFORMATION
What are S106 legal agreements and Planning obligations
Planning obligations are an established statutory mechanism for mitigating planning effects
arising from development proposals. Planning obligations can either be made by a unilateral
undertaking or by agreement. The agreements are usually negotiated within the context of
planning applications, between Local Planning Authorities and persons with an interest in the
piece of land (owners, leaseholders or developers). They are intended to make development
acceptable, which would otherwise be unacceptable in planning terms.
Any S106 contributions must be spent on their intended purpose (as set out in the relevant
planning) and contribute to the sustainability of the area by mitigating the impacts of the
development proposals. As a result, expenditure of S106 contributions must relate to a specific
development and must be in accordance with the corresponding legal agreement. If a contribution
is not used for the intended purpose or not spent within the period allocated in the S106
agreement, the monies may need to be returned.
Why we are proposing ending the current approach
The Council has historically utilised an external provider (Qualify Me) to assist in discharging the
construction training element of S106 legal agreements. The last decision to approve this w as
taken via Cabinet Member Decision on 15 February 2022 (Ref 365) and allocated £241,645. This
approach has facilitated construction training coordination on large sites within the Borough
during a period where there was limited staff capacity and expertise to deliver this in house. It
should be noted that initial developer liaison, regular meetings with the developer , reporting and
other contract management functions are still being undertaken by Council officers as part of this
approach.
Cabinet Member Report – 23 January 2026 Page 4
Part I - Public
However, Officers believe that ending this contract and bringing all elements of this process within
the team would amount to better value for money, allow greater control over training and improve
delivery of training to the benefit of residents. As noted above, the existing approach is not without
resource implications for internal officers already, which amounts to £57,000 per annum in
addition to the money directed to the external provider. The team are confident they could utilise
this funding better to further resource the team and deliver better outcomes.
What are the benefits of new approach and how is it calculated.
One benefit of the new approach is removing the administrative burden of contract managing the
external provider , who currently does not cover all the functions involved with delivering the
requirements of the S106 planning obligations. The other benefit is taking greater control over
how the money is delivered and ensuring it is aligned to the other work of the team and the
opportunities these are creating.
The funding would ensure coordination, delivery and reporting on construction and employment
training planning obligations. This would include the following functions:
• Where employment strategies are secured on suitably large construction sites, monitoring
and reporting on these directly to ensure agreed performance targets are being met.
• Assisting with relevant enforcement activity where necessary due to a disqualifying event
taking place, which triggers rectification.
• Where necessary, providing the construction work placement co-ordinator function on-site.
• Where financial contributions in lieu are required, ensuring delivery and coordination of the
alternative training provision by a suitable provider or directly via an in- house S106 Skills
and Employment Service. This will include coordinating with major em ployers to ensure
local residents access training and employment opportunities and engage with local
partners (e.g. Job Centre Plus and colleges) to support residents with barriers to
employment.
• Negotiate and agree any variations to the construction and training element of
development schemes with developers in line with the Council’s latest policy position.
• Provide the necessary data to facilitate regular reporting on progress and outcomes,
including information necessary to assist in the discharge of relevant obligations.
• Support the Heathrow Labour Strategy, including job brokerage and employment/skills
initiative, including through Heathrow Academy. Align training provision with Heathrow’s
current and future skills needs by working with local colleges and universities.
• Ensure standardised delivery of construction and employment training across West
London, bringing Hillingdon in line with neighbouring boroughs to facilitate development
growth and remover unnecessary barriers.
Officers have calculated that the cost in delivering the above will approximately be £247,500 for
a 24-month period (£123,750 annually). Part of this will be utilised to fund the necessary time
afforded by the Regeneration & Economic Development Manager and the Economic
Development Team Leader over the 24-month period. It should be note d that, at present, the
existing approach already estimates this time equate to be £57,000 per annum.
Cabinet Member Report – 23 January 2026 Page 5
Part I - Public
However, to fully bring this function in- house, the other part of the £123,750 will be directed to
new staff within the team. It is envisaged that this will take the form of a 23- month FTE role at
grade POB, with the recruitment process to this post taking place immediately, to coincide with
the termination of the external contract. Whilst this is the preferred approach, Officers are mindful
of the need for necessary flexibility in the recruitment process to obtaining this new capacity ,
based on the job market and available candidates.
The requested amount is reflective of the high number of significant developments that are
forecast to commence over the next two years, including a pipeline of residential schemes and
several large employment schemes (incl. significant data centres) that have permission, in
addition to the Council’s growth agenda and the desire to improve productivity amongst jobs
created in Hillingdon.
Ending Current Approach
It is necessary in the immediate term to maintain the co- ordination, monitoring and reporting of
construction training in line with existing S106 legal agreements, noting that this relates to some
schemes that are currently ongoing and providing training to individuals. Therefore, a request for
£80,848 for funding a temporary extension to the Council’s existing provider (Qualify Me) is made
to cover the period until the proposed break in contract . The contractual break clause in the
contract with Qualify Me will be utilised, subject to this Cabinet Member decision being approved
to allow construction training to be delivered directly by the Regeneration and Economic
Development Team.
Developer obligations taken towards construction training and workplace co-ordinator
The contributions outlined in Appendix A were taken in relation to planning applications which
were expected to generate significant employment opportunities during the construction phase of
the development. Planning permission was therefore approved for each development subject to
the developer providing a financial contribution towards the cost of providing construction training
courses and the provision of a workplace coordinator to coordinate "on site" training and
employment opportunities arising from construction schemes in the borough. The level of
contribution was calculated in proportion to the size of the development and the build costs of the
scheme, in accordance with the Council’s Supplementary Planning Document on Planning
Obligations as amended 2014.
Details of the S106 contribution held at case ref PPR/49/174C (Appendix A)
In accordance with a S106 planning agreement signed 29 June 2007 (“the 2007 Agreement ”)
relating to the replacement of passenger terminal 2 building at Heathrow Airport (planning
reference 62360/APP/2006/2942), the Council currently holds a remaining balance of £60,102.02
towards the implementation of the Heathrow Local Labour Strategy in Hillingdon. Under the terms
of the S106 agreement, Heathrow Airport Ltd (HAL) was required to invest £150,000 per annum
for a period of 10 years (until 2018) in activities that were consistent with the Strategy, with one
third of that investment (£50,000) being spent within Hillingdon’s administrative area.
In later years, to meet this commitment in Hillingdon, rather than spending the funds directly
towards eligible schemes in the Borough, HAL made monetary contributions to the Council
towards delivering the Heathrow Labour Strategy in Hillingdon. There is no time limit for spending
these funds.
Proposed allocation
Cabinet Member Report – 23 January 2026 Page 6
Part I - Public
Since the 2007 Agreement, Hillingdon’s approach to economic development has continued to
evolve to reflect the changing economic circumstances in the Borough. The Heathrow Local
Labour Strategy objectives, that sought to ensure that local people have access to training and
employment opportunities at Heathrow, have now been incorporated in the Council’s Strategy
2022-2026. In which one of the Council’s 5 commitments is to deliver a thriving economy by
working in partnership with local employers (such as HAL) and other stakeholders to provide
opportunities for residents to learn new skills, find local jobs and progress into better quality jobs.
Officers are therefore requesting that the remaining balance from this contribution is allocated
towards the Regeneration and Economic Development Team to continue to deliver employment
training in the borough. This work will include working closely with Heathrow colleagues to support
them in local job brokerage and delivering employment and skills initiatives for local people
through opportunities at Heathrow and the Heathrow Academy.
Financial Implications
The report requests the allocation of £328,348 from sixteen S106 contributions as detailed in
Appendix A towards two schemes.
Recommendation one requests the allocation of £80,848 to fund construction training by the
temporary extension of the Council’s current provider Qualify Me.
Recommendation two requests the allocation of £247,500 to fund continued support for officers
within the Economic and Regeneration team f or a further two years (financial years 2026/27 &
2027/28) at £123,750 per annum.
All of the sixteen S106 contributions meet the conditions stipulated in the S106 agreements and
if approved, will reduce the call on Council resources.
If the S106 funds held at PPR/155/ 445A is not spent on the intended purpose by the sti pulated
deadline of December 2026, the funds may need to be returned to the developer with interest as
per the S106 agreement.
RESIDENT BENEFIT & CONSULTATION
The benefit or impact upon Hillingdon residents, service users and communities
The recommendations in this report will enable S106 contributions to be spent to maximum effect,
with greater value for money and impact than is currently being achieved, to provide an
improvement in the local skills and employment benefits that are offered to residents.
Consultation & Engagement carried out (or required)
No formal consultation is required.
Officers have engaged with major developers involved in the delivery of construction and
employment training and skills in determining the effectiveness of the existing and proposed
approach.
Cabinet Member Report – 23 January 2026 Page 7
Part I - Public
CORPORATE CONSIDERATIONS
Corporate Finance
Corporate Finance have reviewed this report and concur with the Financial Implications set out
above, noting the recommendations to allocate S106 Contributions totalling £328k, comprising of
£81k to fund the construction training and £248k to fund the Economic and Regeneration team
for directly co-ordinating, delivering and reporting on construction and employment training for a
further two-years covering the financial years 2026/27 and 2027/28, with these allocations being
in accordance with planning obligation agreements.
Legal
Legal Services have considered the content of the Section 106 agreements referred to in this
report and conclude that the recommendations presented to approve the allocation of £328,000
from identified Section 106 contributions held by the Council are consistent with the terms of the
respective agreements.
BACKGROUND PAPERS
Nil.
APPENDIX A
Details of S106 Construction and Employment Training contributions to be allocated towards
Construction and Employment Training Coordination and Delivery.
Cabinet Member Report – 23 January 2026 Page 8
Part I - Public
View Decision / Minutes Text
Executive Decision Notice – 03 February 2026
This notice is a public document also available to view on the Council's website www.hillingdon.gov.uk
OFFICIAL EXECUTIVE DECISION NOTICE
PUBLISHED BY DEMOCRATIC SERVICES
Notice is hereby given that the following decision(s) have been made today by
Cabinet Members at the London Borough of Hillingdon:
Title of decision New Allocation of S106 Contribution 2025/26: Construction
and Employment Training Coordination and Delivery
Reference No. 1612
Date of decision Tuesday 3 February 2026
Call-in expiry date Tuesday 10 February 2026
Relevant Select
Committee
Residents’ Services Select Committee
Relevant Wards All
Decision made
Cabinet Members making
the decision
Councillor Eddie Lavery, Cabinet Member for Finance &
Transformation
Decision Approved
That the Cabinet Member for Finance and
Transformation agreed the allocation and spend of S106
construction training contributions listed in Appendix A
to the report as follows:
1) A maximum of £80,848 for funding a temporary
extension to the Council’s existing provider
(Qualify Me) to cover the period until the break in
contract. This is required to maintain the co-
ordination, monitoring and reporting of
construction training in line with existing S106
planning agreements up until the proposed break
in contract. If the full amount is not spent , it was
agreed that any remaining balance w ould be
allocated and spent on delivery of construction
training schemes.
2) A maximum of £247,500 for the Regeneration and
Economic Development Team for directly
coordinating, delivering and reporting on
construction and employment training over a 24-
month period commencing FY26/27.
Reason for decision The Cabinet Member agreed that the Council should take a
new approach to delivering the construction and
employment training and skills committed to via S106 legal
Executive Decision Notice – 03 February 2026
This notice is a public document also available to view on the Council's website www.hillingdon.gov.uk
agreements on new development. At present, part of the co-
ordination, monitoring and reporting of construction training
is provided by an external consultant employed by the
Council. The new approach is to have this fully brought
within the Council with the aim of delivering better value for
money, greater control and improved delivery. This
approach aligns with expanding the service in collaboration
with key local partners, including developers and large
employers. The amount required for the Regeneration and
Economic Development Team to directly coordinate, deliver
and report on construction and employment training has
been estimated at £247,500 for a 24- month period
(£123,750 annually).
He noted that it is necessary to maintain the co-ordination,
monitoring and reporting of construction training in line with
existing S106 legal agreements, noting that this relates to
some schemes that are currently ongoing
and providing
training to individuals. Therefore, a request for £80,848 for
funding a temporary extension to the Council’s existing
provider (Qualify Me) was agreed to cover the period until
the proposed break in contract . The contractual break
clause in the contract with Qualify Me will be utilised to allow
construction training to be delivered directly by the Council’s
Regeneration and Economic Development Team.
Alternative options
considered and rejected
The Cabinet Member could have agreed to fund the scheme
and / or suggested alternative projects to which funds could
be allocated within the terms of the relevant legal
agreements.
The main alternative option at this stage would be to simply
continue the Qualify Me contract for an extended period and
not bring the service in- house. However, this option would
have meant the Council miss ing out on a significant
opportunity to create an in- house service which is more
targeted to Council priorities, cost-effective and flexible. The
new proposed approach will be able to take a more strategic
approach to building relationships and delivery partnerships
with local organisations than is currently happening under
the outsourced approach, delivering a more bespoke
service and opening up the possibility of leveraging
additional external funding.
Classification Part I – Public
Link to associated report Here
Relevant Officer contact
& Directorate
Sam Robins / Nicola Wyatt – Residents Services
Executive Decision Notice – 03 February 2026
This notice is a public document also available to view on the Council's website www.hillingdon.gov.uk
Any interest declared by
the Cabinet Member(s) /
dispensation granted
N/A
Implementation of decision & scrutiny call-in
[Internal Use only]
When can this
decision be
implemented by
officers?
Officers can implement Cabinet Member decision in this notice only
from the expiry of the scrutiny call-in period which is:
5pm on Tuesday 10 February 2026
However, this is subject to the decision not being called in by
Councillors on the relevant Select Committee. Upon receipt of a
valid call-in request, Democratic Services will immediately advise
the relevant officer(s) and the decision must then be put on hold.
Councillor scrutiny
call-in of this
decision
Councillors on the relevant Select Committee shown in this notice
may request to call-in this decision. The request must be before the
expiry of the scrutiny call-in period above.
Councillors should use the Scrutiny Call-in App (link below) on their
devices to initiate any call-in request. Further advice can be sought
from Democratic Services if required:
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Further information These decisions, where applicable, have been taken under The
Local Authorities (Executive Arrangements) (Meetings and Access
to Information) (England) Regulations 2012.
This is the formal notice by the Council of the above executive
decision, including links to the reports where applicable.
If you would like more information on this decision, please contact
Democratic Services on 01895 250636 or email:
democratic@hillingdon.gov.uk.
Circulation of this decision notice is to a variety of people including
Members of the Council, Corporate Directors, Officers, Group
Secretariats and the Public. Copies are also placed on the
Council’s website.
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