Melton's bypass under serious threat because of council's 'terrifying' financial status

Work on the Melton Mowbray Distributor Road (MMDR), which would link the A606 Nottingham Road to the north with the A606 Burton Road to the south after passing east of the town, was due to start in February next year with a projected opening of the road in the spring of 2025.

But County Hall announced in a briefing this morning (Tuesday) that it needs to make drastic savings to avoid becoming effectively bankrupt with the Melton relief road one of possible casualties in its scheduled capital programme for next year.

The county council’s budget gap is set to grow from £8million to £28million next year – and could even top £140million by 2026 - as the ‘dire’ financial situation affecting local authorities intensifies.

Rising inflation, the Russian invasion of Ukraine, surging demand for services and the continued impact of Covid mean costs are increasing at an unprecedented rate, the authority says.

Leader Nick Rushton confirmed that the MMDR project, which has been in the pipeline for more than 50 years, may not now go ahead as planned.

He said at today’s briefing: “The MMDR has to go in the long list of potential savings along with the A511 at Coalville.

"We’ve had money from the government, substantial amounts, but unfortunately not enough to completely build it so it will remain in the mix.

"I’ve had long conversations with Joe Orson, the leader of Melton Borough Council, he’s fully aware of the problems we’ve got but to say ‘it’s not in the mix’ would be a lie.

"It has to remain in there.”

“All capital schemes will have to be in the mix because not only have we not got the money from the government but we can’t afford the borrowing."

The council anticipates an inflation rise of 10 to 15 per cent but with Council Tax only due to increase by three per cent it doesn’t have the revenue coming in to pay for all the services and projects it wants to.

Service demand is unrelenting, says a report the council has released, and it is expected to go up by £18million every year, excluding the impact of inflation.

Capital costs – for building roads, schools and other one-off projects – could grow by £45million if infrastructure price rises don’t reverse.

Councillor Rushton said a decision on whether to axe the MMDR or other big projects from the budget would have to be taken between December, when the scale of the annual government funding to the council is known, and February when the budget is set.

Although there are no proposals at this stage, the report published by the council today illustrates the challenge ahead by providing an initial list of potential areas to investigate for possible service changes or reductions.

This includes gritting, parks, bus subsidies, projects reducing smoking and boosting health, Beaumanor Hall as well as planned big road schemes.