Telford is suffering badly from the credit crunch, with house building slowing down dramatically and a slump in the business and domestic property market, a new report reveals today.

The construction industry has been seriously hit and the spiralling price of energy and fuel costs are eating into profit margins.

But it is not all gloomy news, as more than 140 jobs have been created by business expansions and new companies moving into the borough.

The figures are revealed in the latest five-month report – for April to August – of Transforming Telford, a partnership of public and private sectors to develop the town.

The report, which will be considered by Telford & Wrekin Council’s cabinet on October 13, says: “Official Treasury figures show the UK economy grinding to a halt between April and June – ending a run of 63 consecutive quarters of economic growth.”

The report highlights the way in which the country’s annual growth rate is at its weakest since late 1992, when the pound was forced from the Exchange Rate Mechanism on “Black Wednesday”.

It says property prices are slumping, there has been the near-collapse of banks including Northern Rock and Bear Sterns in the USA.

Food and energy costs are rising, disposable income is very low, manufacturing and construction have been hammered and the service sector is “barely expanding”.

Turning to the local situation, the report says: “House building on major sites at Lawley, East Ketley and the Millennium Village has slowed dramatically.”

By Peter Johnson