Agenda item

The Cabinet considered a joint report of the Chief Executive, Director of Corporate Resources and Director of Environment and Transport which advised of officers’ concerns that Melton Borough Council had not undertaken the necessary work on masterplanning in the Borough, which intensified the financial risk to the County Council in accepting a grant and in building the southern section of the Melton Mowbray Distributor Road (MMDR). A copy of the report and the supplementary report, marked ‘Agenda item 8’, is filed with these minutes.

The Director of Corporate Resources explained that the financial risk to the County Council needed to be set in the context of the wider development of infrastructure by the County Council across Leicestershire which would total over £600m over the next 15 years. There was a particular financial risk to the County Council in building the southern section of the MMDR, for which only 20% of the £70m estimated cost would be funded by the Housing Infrastructure Fund Grant.  Proceeding with this therefore currently relied on the County Council forward-funding £56m with no indication as to how or when it would be recouped.   

Mr. Rhodes CC noted that the MMDR was a key element of Melton Borough Council’s Local Plan and expressed his keen disappointment at its failure to do the masterplanning work needed to provide financial assurance to the County Council in delivering the southern section.

Mr. Rushton CC added that in such economically unstable times, it was even more essential that Melton Borough Council had the appropriate plans in place to reassure the County Council considering the level of financial risk.

RESOLVED:

a)          That the financial risk to the County Council of having to forward fund £100m on current estimates to allow the northern/eastern and southern sections of the Melton Mowbray Distributor Road to be constructed, be noted;

b)          That it be noted that:

(i)     this position has regrettably been exacerbated by Melton Borough Council having no comprehensive masterplan, including a phasing and delivery plan, for either the Northern or Southern Sustainable Neighbourhoods as required by the Melton Local Plan, including key transport links within and outside the developments, linking to the town of Melton Mowbray and other housing and employment areas;

(ii)    without these masterplans and a process to produce them not having been undertaken in line with the Local Plan, there is too much uncertainty about development in Melton for the County Council to commit to forward fund the cost of the southern section of the Melton Mowbray Distributor Road at a time of increasing financial uncertainty;

c)          That Melton Borough Council and Homes England accordingly be advised that in the absence of masterplans which meet the requirements of the adopted Melton Local Plan and no assurance that Melton Borough Council is close to completing such plans after a required process of consultation with all stakeholders, the County Council is unable at this time to accept the grant aid offer from Government towards the cost of the southern section of the Melton Mowbray Distributor Road;

d)          That the Department for Transport be advised that the County Council remains committed to progressing further the northern and eastern legs of the Distributor Road;

e)          That an offer be made to Melton Borough Council for the County Council to undertake at its expense a fresh masterplanning exercise on the understanding that the Borough Council will cooperate fully and the outcomes of the exercise, to be concluded as quickly as possible, will be subject to the approval of both councils;

f)            That it is important to note in this context that the County Council has to date invested circa £5m in support of the Melton Mowbray Distributor Road and the Melton Mowbray Transport Strategy; has allocated £16m towards the construction of the northern and eastern legs of the Distributor Road; and is prepared to allocate £13m towards the construction of the southern leg if recommendation (e) is accepted by Melton Borough Council;

g)          That the offer in (e) above be made to Melton Borough Council so that the County Council can accept the Housing Infrastructure Fund bid for the southern section of the Distributor Road; and that Melton Borough Council be informed of the County Council’s intention to give an answer to the Ministry of Housing, Communities and Local Government and Homes England on the grant aid offer for the southern section of the Distributor Road by 31 May 2020 at the latest.

REASON FOR DECISION:

The escalated financial risk to the County Council of accepting the Housing Infrastructure Fund grant offer is not acceptable given the inadequate approach to masterplanning by Melton Borough Council.