Huge development in Lutterworth set to go ahead after funding row ended

The Lutterworth East development will see some 2,750 homes built.
The development will now go aheadThe development will now go ahead
The development will now go ahead

A huge development is set to go ahead after a row over funding ended.

University Hospitals of Leicester NHS Trust took Harborough District Council to a judicial review at the High Court in London over a site called Lutterworth East - a 2,750 home development by the M1.

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Trust bosses said they needed money from Section 106 agreements to cope with the extra patients and demand placed on the health service, including Leicester Royal Infirmary. The funding is paid by developers to local authorities to support services like new roads, education and health facilities required by the new community.

But the trust lost the High Court battle, and time has now expired for an appeal to take place.

A spokeswoman from Harborough District Council said: “We welcome the decision by University Hospitals of Leicester NHS Trust not to appeal the High Court judgement regarding the S106 funding decision for Lutterworth East.

“The legal proceedings have delayed the Lutterworth East development, which is part of the local plan and was approved democratically. We now look forward to working with all stakeholders to deliver this major investment in the western part of Harborough district to deliver much needed affordable homes, employment, schools and infrastructure sustainably at Lutterworth East.”

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The Lutterworth East scheme was approved by Leicestershire County Council in 2020 and will see thousands of new homes, a village centre, two primary schools, parks and sports grounds built. It is understood the scheme will create 2,500 jobs and 40 per cent of the homes will be classed as ‘affordable’.

The High Court appeal was held over two days and found the trust failed to establish there would be a ‘funding gap’ due to the development. Judge Mr Justice Holgate said the trust would not receive the requested £1million in developer funding and was instead forced to contribute £35,000 to the council’s legal fees.

The appeal was the first time the High Court had considered the approach to so-called ‘Section 106’ contributions in respect of NHS services.

Following the case, trust chief executive Richard Mitchell said the trust was ‘disappointed in the outcome’.

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