Section 106 Q&A - Chris Appleton, Business Development Manager at AIMES

Section 106 Q&A - Chris Appleton, Business Development Manager at AIMES

Posted on: 08/05/2019

What is a Section 106 agreement?

“Section 106 is the legal process of recovering financial contributions from new residential developments that impose additional unfunded demands and pressures upon NHS acute and accident emergency services infrastructure and other NHS services. These impacts can be addressed through the planning system by securing financial contributions from housing developers. Together with our legal partners, AIMES will aid in recovering these financial contributions using specialised software and algorithms to calculate the amount owed to the trust.”

Why is this relevant to the NHS?

“This unfunded additional demand leads to additional revenue costs and, potentially, lost funding for the Trust in future years if the increased demand results in a failure to meet targets. This will adversely affect the Trust’s ongoing ability to deliver services. In response to the unanticipated increase in demand, a Trust will typically have to engage agency staff at a premium to ensure the service can be delivered and that the standard of care required is maintained, often diverting resources from elsewhere. Further, longer waits in A and E and the failure to meet other targets caused by can lead to penalties, which further worsens the finances of the Trust and its ongoing ability to provide high quality services. These negative impacts can be mitigated or avoided entirely by the payment by the developer of what is often a relatively modest amount to reflect the cost of resourcing the additional demand over a 12-month period.”

What does the AIMES Section 106 solution do?

“Our specially developed Software constantly monitors local authority websites and alerts our legal partners whenever planning permission has been approved. We then use algorithms to calculate the amount of money owed per dwelling. AIMES have automated this procedure making it easy and cost effective for the trust.”

What are the benefits of it?

“The trust can get additional financial contributions to help finance already underfunded and over stretched services. As an example, to date in excess of £10 million pounds has been secured towards acute and accident and emergency care services at the South Warwickshire NHS Foundation Trust.”

Which organisations have been using them?

“We are currently instructed, or in the process of being instructed by 25 NHS Trusts. These include, The Royal Liverpool & Broadgreen University Hospital and Liverpool Women’s Hospital, as well as major NHS Trusts throughout the Midlands, Yorkshire, South East and the South West such as University Hospital Southampton NHS Foundation Trust, South Warwickshire NHS Foundation Trust, George Elliot NHS Trust, University Hospitals of Coventry and Warwickshire NHS Trust, and University Hospitals Birmingham NHS Foundation Trust.”

How can you find out more about the AIMES Section 106 solution?

Please contact myself I would be delighted to answer any further questions: chris.appleton@aimes.net / 07517 999 786 / 0151 905 9713