Issue - meetings

North/East Melton Mowbray Distributor Road - Target Cost / Award Contract for Main Works.

Meeting: 16/12/2022 - Cabinet (Item 201)

201 North and East Melton Mowbray Distributor Road - Cost Implications. pdf icon PDF 537 KB

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The Cabinet considered a report of the Director of Environment and Transport regarding progress with the North and East Melton Mowbray Distributor Road (NE MMDR) scheme, including cost implications, and seeking a decision as to whether to progress with the next steps in the delivery of the scheme.  A copy of the report, marked ‘Agenda Item 5’, is filed with these minutes. 


Members noted comments from a member of the public, Mr. J. Marriott.


Mr. O’Shea CC thanked officers for their work on the scheme and endorsed the recommendations in the report to proceed with construction of the Road.




a)    That the latest position regarding progress with and costs of the North and East Melton Mowbray Distributor Road (NE MMDR) scheme be noted;


b)    That the three options for the Council, all of which have significant financial consequences, be noted;


c)    That Option 1, to progress to delivery, is approved subject to confirmation by the Department for Transport that the Full Business Case for the NE MMDR is approved, and that the Large Local Majors funding for the scheme will be released;


d)    That subject to c) above, the Director of Environment and Transport, in consultation with the Director of Corporate Resources and following consultation with the relevant Cabinet Lead Member, be authorised to undertake the necessary actions to construct the NE MMDR;


e)    That in the light of the Council’s extremely serious financial position set out in the report, the Directors of Environment and Transport and the Director of Corporate Resources, following consultation with the relevant Cabinet Lead Members, be authorised to prioritise current available developer funding towards the delivery of the scheme and pursue additional funding, including with Melton Borough Council, the local Member of Parliament, the Department of Transport, and developers;


f)      That the Director of Corporate Resources be authorised to manage the financial arrangements for the funding of the scheme using the range of treasury management options available to minimise the cost of providing gap funding for the project.






The NE MMDR is a key piece of infrastructure (identified as part of Melton’s Local Plan) that is designed to facilitate sustainable growth in the Borough and economic growth in Leicestershire and the East Midlands.


Despite the increase in costs the scheme still represents value for money. Given the Council’s current financial challenges and cost escalations on the scheme it has been faced with a difficult decision: whether to proceed with delivery of the NE MMDR, to withdraw from the scheme, or to pause work on the scheme. However, based on current information the decision to proceed with the scheme will provide most benefit for the investment and meet the objectives outlined above. 


There are a number of processes and contractual arrangements necessary to deliver a major transport infrastructure scheme that it is now appropriate to delegate to the relevant Directors to implement in accordance with the arrangements set out in the Council’s Constitution.


The ongoing financial challenges facing the Council necessitate the need to maximise external funding where possible. This will reduce the detrimental impact that would result from redirecting resources from other services. The Council’s capital programme borrowing requirement will increase as a result of the scheme.




(Detailed in the report and summarised below)


Option 2 - do not proceed to delivery


Benefits included a very limited reduction of upfront costs to the Council and the related borrowing requirement (£4.3m in total), and that there would be potential to use the Council’s limited capital funds for other schemes or priorities.


Disbenefits included significant negative strategic planning  ...  view the full minutes text for item 201