Enfield Council has responded to claims it is sitting on nearly £10 million of funding that could be spend on “vital” community projects.

The council said the use of pots of money it brings in through development schemes is “legally restricted”, and most of it has already been allocated to improvements.

It comes after the Conservative group claimed £9.5 million of funding from Section 106 agreements, the Community Infrastructure Levy (CIL) and the New Homes Bonus remained unspent.

An Enfield Council spokesperson said: “Enfield Council does not have an underspend in the way the Conservative group has characterised. The council faces a £19.2 million amount gap in its revenue budget this year because the estimated cost of coronavirus has not been fully met by government. Our revenue budget funds frontline services such as refuse collection, social services and libraries.

“This shortfall is on top of the £193 million savings the council has been forced to make since 2010 because of government cuts and increasing pressure on our services.

“Section 106 and CIL funds are separate from the revenue budget and are contributions from developments in our borough. Their use is legally restricted, with the law dictating that Section 106 money must be spent for a purpose related to a specific development (for example funding a school expansion), while CIL must be spent on infrastructure that is needed to meet the future growth needs of the borough. That means funding schemes such as public transport, sports pitches, new wetlands in parks, and pavement and streets upgrading.

“The council cannot spend these development tariffs or obligations through the revenue account on council services for vulnerable residents, day-to-day services or police officers. The majority of the funds we currently hold, and which have not yet been spent, have already been allocated to similar improvements.

“As already stated, the Covid-19 pandemic has placed severe financial strain on the council’s budget this year and will continue to do so for many years to come. We are reviewing our reserves. One of the uses this money may be used for is to fund the cost of increasing numbers of residents losing their jobs or earning less and needing to apply for council tax support.

“To date, there is no additional Government funding for this significant additional cost, which could exceed £6 million per annum, so the council will be required to step in to support residents.”

Council leader Cllr Nesil Caliskan (Labour, Jubilee) added: “The Conservative group’s statement demonstrates a lack of understanding in basic local government finance. It would be better if they wrote to the Government and asked Boris Johnson to give Enfield residents the money they owe us.”