Vital bypass funding could be lost over argument between councils

Leicestershire County Council estimates it would need to underwrite £55million to help pay for the road and a new primary and secondary school in that part of the town before the money is refunded as developer contributions from the building of thousands of new homes.

Councillors agreed at a cabinet meeting this afternoon (Tuesday) that it was too much of a risk to forward fund that much on its own and they have asked Melton Borough Council to share the risk with them by pledging to meet a ‘substantial amount’ of the upfront cost.

However, in a letter sent to the county council prior to today’s meeting, the borough council offered to underwrite the risk up to a maximum of only £1million and said it could not afford to pay any more.

The deadline for accepting the £15million towards the south section of the relief road (MMDR), which would connect Burton Road with the A607 Leicester Road, is the end of this week and is dependant on local authority funding being agreed as well, raising fears that the promised government cash, from the Housing Infrastructure Fund (HIF), will be lost.

The borough council’s cabinet is due to discuss the issue again at a meeting tomorrow afternoon with time running out for accepting the grant.

Reacting to today’s decision at County Hall, borough council leader, Joe Orson, said: “We note the decision of the county council’s cabinet this afternoon which makes acceptance of the HIF grant conditional on Melton Borough Council underwriting a multi-million pound risk, which is both unaffordable and something for which the county council is responsible for.

“We continue to recognise the risks faced by the county council and have done a considerable amount to help mitigate them and support delivery of the road.

“We will continue to do everything we possibly can and tomorrow our cabinet will review all the positive steps we have taken as well as the latest position and implications arising from the county council’s decision this afternoon.

“None of this though changes the fact that as a borough council, with a budget 100 times smaller than the county council, there is only so much we can do and accepting the HIF and building the road is ultimately a matter for the county council.”

County Hall’s decision this afternoon will not be welcomed by Melton MP, Alicia Kearns, who wrote to the cabinet giving her support to the borough council’s position on the issue.

In her letter, which County Hall leader Nick Rushton said arrived 20 minutes before the meeting and which was not read out during the debate, Mrs Kearns wrote: “I look forward to the county council approving this application for HIF funds without qualification or conditions expected from Melton Borough Council, other than those Melton Borough Council has already offered and agreed.

“I fully expect any report tabled by Leicestershire County Council to suggest application for the grant without last minute conditions, as anything else would directly contradict the understanding reached with Homes England in the past weeks.”

This issue does not affect the funding already agreed for the northern and eastern sections of the MMDR, which will connect the A606 Nottingham Road with the A606 Burton Road.

Planning permission has been given for the route with government paying £49.5million of the £63.5million cost. Preliminary work is due to start next year.