MILLIONS of pounds which has been taken from developers during the past five years to help improve Derby has not been spent.

Companies behind big building schemes which put new strain on services such as roads and schools pay extra cash to Derby City Council as a condition of getting planning permission.

The authority can use this for schemes like road improvements, new schools or doctors' surgeries and housing for first-time buyers.

In the past five financial years, the council has taken around £8.5m of this money but an investigation by the Evening Telegraph has revealed that it has only spent £2.5m so far. The remainder is still waiting to be spent or allocated to projects.

Dave Black of the Derby branch of the Taxpayers' Alliance said: "I think it is outrageous that money is being allowed to accumulate like that."

Developers sign what are know as Section 106 agreements, which commit them to providing money for public improvements as a condition of getting planning permission.

Mr Black said: "The whole purpose of Section 106 agreements was that they should help the community – how are they doing that if the money isn't being spent?"

One of the largest contributions still not spent is £500,000 which was taken for the development of the cinema at the Westfield centre in 2006-07.

According to details obtained by the Evening Telegraph under the Freedom of Information Act, the council has still not decided how it wants to spend that money.

Similarly, £231,122 collected as part of the Highfields Broadway development in the 2005-2006 financial year has not been spent or provisionally allocated to any schemes.

But the council said that only £200,000 collected as part of the biggest developments has not yet been earmarked to be spent. The remainder has been allocated to various schemes, which have not yet got under way.

Councillor Lucy Care, cabinet member for planning and highways, said that to get the best out of the money it was sometimes necessary to wait before spending it.

"With the Westfield development, for example, we are currently using some of that money to fund the shopper hopper bus and if we had spent that money straight away it wouldn't be available for us to use now.

"I think the agreements are important. It isn't always just about giving money, it can specify things which should be done as part of the development as well, such as providing a bus service."

Section 106 agreements do not have to involve money. They can be used to get a developer to carry out certain work as part of the development, like building a new school.

The largest contribution in the past five years has come from the building of Westfield, when nearly £2.8m was given to the council.

That money has been allocated, with £1m going to the Connecting Derby scheme to complete the Inner Ring Road.

The rest went towards projects such as the refurbishment of East Street, the Business Improvement District, Christmas lights, and the Open for Business campaign to drive up trade in the Cathedral Quarter.

Westfield said it felt the cash it had paid through section106 agreements had helped the city. A spokeswoman said: "Westfield provided Derby City Council with a substantial sum to help with the improvement and regeneration of other parts of the city.

"In addition, Westfield provided improvements to Traffic Street, London Road, a replacement Shopmobility facility, bus lanes and promoted employment initiatives."