Relief road struggles to find credible funding source

14/02/2025 | CHRIS AMES

Relief road struggles to find credible funding source

Shropshire Council has admitted that its controversial Shrewsbury North West Relief Road (NWRR) has a funding gap of over £100m – a deficit for which it currently has no credible funding source.

The highway authority was hoping that a £136m Local Transport Fund allocation under the previous Government’s Network North programme could be used to fill the funding gap, but that funding stream was described by the transport secretary this week as ‘fantasy money’.

Until now, Shropshire has not provided an updated cost for the scheme, which has seen the price skyrocket since an outline business case (OBC) put it at £71.4m.

It previously retracted a disclosure of a £95m funding gap, claiming it was an error.

In an interview with the BBC in October 2023, the then transport secretary, Mark Harper, said the Government would fund 100% of the NWRR, near Shrewsbury, which is categorised as a Large Local Major (LLM) scheme.

However, the Department for Transport later clarified that it was only considering paying the full cost at OBC stage and that it had only so far pledged £54m.

The scheme also incorporates a planned Oxon Link Road (OLR), for which Local Growth Fund cash was allocated.

The council’s 2024-25 to 2029-30 Capital Strategy, which was discussed at a meeting of its cabinet this week, states that the combined funding gap for the NWRR and OLR is £111.484m. This is a ‘movement’ of £99.226m compared to the previous year, which cited a figure of £12.258m.

The Medium Term Financial Strategy (MTFS) presented to the same meeting states that ‘the financial options relating to the various scenarios for the scheme will be set out in the Council version of the MTFS’.

This is a reference to a new version being produced for a meeting of the full council on 27 February. This suggests that the authority either does not have a current funding plan for the project, or it is not including it in a published document to be considered by its cabinet.

The apparent absence of a funding plan for the scheme also suggests that the authority has failed to deliver a recommendation from its own external auditors last year that it produce one ‘as a matter of urgency’.

It also calls into question a statement made by the council’s cabinet member for highways, Dan Morris, that: ‘The project was also under another Grant Thornton external audit (in response to a Shropshire Council member challenge) that required no further actions.’

A council spokesperson told Highways that Cllr Morris was making the point ‘that he had been provided with assurances from the officers managing the NWRR project that the recommendations as set out in the [auditors’] report had already been implemented’.

It now appears that the ‘further action’ of producing a formal funding plan is still ongoing.

A funding plan would require an updated estimate of the scheme’s projected costs, something that the council has said will be made public in the full business case (FBC) for the scheme, which it has repeatedly promised to publish.

It had been expected that the FBC would be discussed at the full council meeting on 27 February but Andy Wilde, assistant director for infrastructure, who is overseeing the scheme told the council's Audit Committee last week that he could not say when it would be published.

Highways InProfile

latest magazine issue
Highways jobs

Head of Parking

£86,274 - £89,667
Our borough is beginning a huge transformation. Redbridge, London (Greater)
Recruiter: Redbridge London Borough Council

Assistant Director Transport and Infrastructure

£115,958 - £120,407
Dumfries and Galloway Council is ambitious for our region. Dumfries and Galloway
Recruiter: Dumfries & Galloway Council

Professional Services Partnering Manager

Grade 13 £49,178 - £52,937 per annum
Shape the Future of Highways
Recruiter: Derbyshire County Council

Civil Enforcement Officer

£25,989 - £27,254 per annum
We’re looking for Civil Enforcement officers to join our parking services team. Selby, North Yorkshire
Recruiter: North Yorkshire Council

Waste and Recycling Manager

£64,355.20 - £70,397.60 per year
As Waste and Recycling Manager your role will be to oversee and manage the Waste Management Services Contract Aberdeen, Aberdeenshire
Recruiter: Aberdeen City Council

Director of Streets and Environment

£129,901 - £135,064
This is an exciting time to be joining Croydon. Croydon (City/Town), London (Greater)
Recruiter: Croydon Council

Highway Maintenance & Drainage Manager

£59,568 - £66,801
As our Highway Maintenance & Drainage Manager Civic Centre, Keynsham
Recruiter: Bath & North East Somerset Council

Director of Transport

£103,292 - £114,280
The York and North Yorkshire Combined Authority was established as a new organisation in early 2024. Northallerton, North Yorkshire
Recruiter: York and North Yorkshire Combined Authority

Head of Economic Development

Grade 14 £54,867 - £60,971 per annum
Are you passionate about making a positive impact on the environment and shaping a sustainable future? Derbyshire
Recruiter: Derbyshire County Council

Major Projects Manager

Grade £54,867 - £60,971 per annum
Do you want to make a real difference to ‘place’, be the driving force behind major capital projects and directly impact people’s lives? Derbyshire
Recruiter: Derbyshire County Council

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

Highways Network Engineer - WMF2169e

£45,091 - £46,142
This position offers a unique opportunity to make a lasting impact on the resilience and effectiveness of our highway network. Kendal,Penrith or Barrow
Recruiter: Westmorland and Furness Council

Highway Network Technician - WMF2168e

£28,598 - £29,540
This role offers an excellent opportunity to gain experience in a specialised area of highways operations while contributing directly Kendal, Penrith or Barrow
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

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

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

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
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