Worcestershire hospital trust files a lawsuit to obtain housing funding

Hospital Royal of Worcestershire

A hospital trust is suing three councils in court over claims that it ought to have received funding from real estate investors.

When Welbeck Land applied to build homes in the county, Worcestershire Acute Hospitals NHS Trust requested the local government ask Welbeck Land for £1.84m.

They received rejections from the councils of Worcester City, Wychavon, and Malvern Hills.

In July, a court hearing will take place.

When housing developers submit expansive plans, local authorities typically request funding from them, which is then used to pay for neighborhood infrastructure.

When plans for 2,200 homes south of Worcester were submitted, the hospital trust felt that it should have also gotten a portion of this section 106 funding.

These requests may be made by NHS trusts as a result of the anticipated increase in healthcare needs brought on by the increased population.

The Local Democracy Reporting Service reported that when the plans for the land between St. Peter's and Kempsey were submitted, the three councils argued that negotiating more money from the developers would probably require a concession on the number of affordable homes being built.

They declared that they were opposed to doing that.

In 2019, the hospital trust made a similar request for £3.4m, which was also denied out of concern for disrupting negotiations.

At a hearing in London, a judge will now rule on whether the councils' denial of the request was legal.

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