DfT backtracks on 'full funding' hopes for Shropshire scheme

15/01/2024 | CHRIS AMES

The Department for Transport (DfT) has backtracked on a pledge from the transport secretary to fully fund a road scheme in Shropshire as the costs soar.

Last October, Mark Harper said in an interview with the BBC that the Government would fund 100% of the North West Relief Road, near Shrewsbury, which is categorised as a Large Local Major (LLM) scheme.

He said: ‘Because of inflation, local authorities have struggled to meet their funding so we’ve committed to paying the whole cost, bringing forward when the project can be delivered.’

The DfT had awarded £54m to the scheme before Mr Harper’s intervention, which was taken by the local authority as a pledge to fully fund the project.

However, in a letter to campaigners the following month, a DfT policy advisor for the Major Road Network (MRN), only referred to a ‘potential financial uplift for the scheme’.

The change of rhetoric comes as doubts grow over how much the scheme is set to cost.

Shropshire has publicised a cost of £80.1m for the project, before the full business case, but two council reports in September identified that the actual cost could have skyrocketed to £175m.

The documents stated that even after an extra £28m - representing ‘the Council Investment requirement that has not yet been secured at OBC Stage’ - there will be a funding gap of £95.4m. 

When this funding gap figure emerged, the council said it ‘should have been deleted’ from the reports and represented a ‘holding figure’, rather than an amount of borrowing that was required to be approved.

But Liberal Democrat councillor and transport campaigner Rob Wilson told the BBC that he had been asking in vain for an updated cost estimate since he was elected in 2021.

'Today at council the Conservatives proposed taking out a £95m loan to make up an unspecified funding gap,' he said.

'I asked why they would need £95m for an £87m road and was not given an answer.'

When Highways asked the DfT to clarify the transport secretary's pledge, a spokesperson pointed to the department’s webpage, which states 'the Relief Road will benefit from an uplift in government contribution from 85% to 100%’.

As Highways has reported, this webpage makes clear that increased funding for MRN and LLM schemes only extends to topping up its contribution from 85% to 100% of the cost assessed at the outline business case stage.

This is in recognition of the fact that, as Mr Harper acknowledged, actual costs are now significantly higher.

The DfT acknowledged that prime minister Rishi Sunak had announced increased funding for most existing MRN and LLM schemes but added: ‘These schemes however, still require business case approval in order to successfully attract the funding’.

The council has said that an up-to-date figure will be included in the full business case and will be considered this year before being shared with the DfT for approval.

Highways has approached the council for comment and has invited it to provide a current estimate of the scheme's costs.

Highways InProfile

latest magazine issue
Highways jobs

Director of Transport

£112,924
East Midlands Combined County Authority (EMCCA) is on a bold journey. East Midlands Region
Recruiter: East Midlands Combined County Authority

Ferry Host - WMF3049i

£25,584 - £25,992
Ferry Host - WMF3049i Windermere, Cumbria
Recruiter: Westmorland and Furness Council

Director of Streetscene

£94,972 - £108,767
We continue to have big ambitions for our borough Fareham, Hampshire
Recruiter: Fareham Borough Council

Principal Engineer - Urban Traffic Control (UTC)

£44,711 - £49,764
Liverpool is home to vibrant, energetic and engaged communities. Liverpool, Merseyside
Recruiter: Liverpool City Council

Roadworker/Driver

Grade 6 £25,183 - £25,638 per annum (Pay Award Pending)
We’re looking for Roadworker/trainee LGV drivers to be part of our team Derbyshire
Recruiter: Derbyshire County Council

Project Chargehand (2 Posts)

Grade 9 £31,344 - £33,253 per annum (Pay Award Pending)
We’re looking for experienced Project Chargehands to be part of the Highways Construction Services team Derbyshire
Recruiter: Derbyshire County Council

Lawyer 2- Planning and Highways

£49,764 - £54,181
We are looking for a fresh thinking and enthusiastic Planning and Highways Lawyer Hereford, Herefordshire
Recruiter: Herefordshire Council

Development Engineer

£35,967 - £41,268 per annum
Are you ready to play a key role in shaping and safeguarding the future of our highways and public spaces? Bexley (City/Town), London (Greater)
Recruiter: London Borough of Bexley

Professional Services Partnering Manager

Grade 13 £47,653 - £51,296 per annum (pay award pending)
We are seeking a dynamic and experienced Professional Services Partnering Manager to lead the strategic management Darley Dale, Matlock
Recruiter: Derbyshire County Council

Technical Supervision Manager

Grade 13 £47,653 - £51,296 per annum (pay award pending)
We are looking for an experienced and driven Technical Supervision Manager to lead our technical supervision teams within the Highways Service. Derbyshire
Recruiter: Derbyshire County Council

Street Lighting Electrician (CDC)

Grade 8, £32,662 - £36,239 (pay award pending)
Highways Operations is a growing service area within the Place directorate. Doncaster, South Yorkshire
Recruiter: City Of Doncaster Council

Highways Assistant Engineer WMF2133e

£39,513 to £40,476
We have an exciting opportunity for the right person to work within the challenging and ever-changing landscape. Penrith, Cumbria
Recruiter: Westmorland and Furness Council

Highways Inspector/NRSWA

£36,345 - £40,344
We are looking for an organised and self-motivated individual to join our Streetworks Team based in Hackney Central. Hackney, London (Greater)
Recruiter: London Borough of Hackney Council

Structures Commissioner

Grade 14 £53,166 - £59,080 per annum (Pay Award Pending)
We are seeking an experienced and strategic leader to join our team as the Structures Commissioner. Derbyshire
Recruiter: Derbyshire County Council

Team Leader Network Co-ordination

£51,429 - £58,140
As Team Leader for Network Coordination, you’ll manage a team that oversees all works and events on our public highways. Kensington and Chelsea, London (Greater)
Recruiter: The Royal Borough of Kensington & Chelsea Council

PRINCIPAL TRANSPORT PLANNING OFFICER

£43693 - £46731
We have an exciting opportunity for an experienced professional to join our team in Hull as a Principal Transport Planning Officer. Kingston upon Hull, East Riding of Yorkshire
Recruiter: Hull City Council

HIGHWAYS AND TRAFFIC ENGINEER - 4 POSTS

£43693 - £46731
We have several exciting opportunities for suitably qualified Highways Civil Engineers and Traffic Engineers Wilson Centre, 1st floor, Hull HU1 2AG
Recruiter: Hull City Council

Principal Transport Planner

£45,718 to £49,764
Do you have considerable experience in the transport strategy and policy, and are you looking for your next career development opportunity? Sheffield, South Yorkshire
Recruiter: Sheffield City Council

Project Lead - Bridges and Structures WMF3037e

£45,718 to £46,731
We are currently seeking to recruit a Project Lead to join our Bridges and Structures team Kendal, Cumbria
Recruiter: Westmorland and Furness Council
SUBSCRIBE NOW

Latest Video

Subscribe to Highways today to ensure you keep your finger on the pulse of everything happening in the UK road network throughout the year.

SUBSCRIBE NOW