Telford & Wrekin Council to spend £50 million building 400 new homes

Telford & Wrekin Council is to borrow the cash to build the properties – but bosses claim the venture will net the authority up to £2.5 million a year in rent to prop up front-line services and prevent the need for further cuts.

It was agreed to proceed with the project by a majority vote at a full Telford & Wrekin Council meeting last night.

Cabinet member Councillor Shaun Davies said the scheme would generate an income through rent of between £1.5 million and £2.5 million per year.

He said a separate "wholly-owned company" staffed by council officers would run the project.

"It will enable new life to be breathed into sites that have not been in use for a long time, it will deliver new homes, it will bring in an income for the council and it will create jobs and apprenticeships," he said.

The council's Conservative group voted against the plans but it was still passed at a meeting by 26 votes to 13.

Tory leader Andrew Eade said it would put "severe pressure" on already over-worked council officers and attacked the level of council borrowing, with another £120 million in place for the funding of a possible new military base in Donnington.

He added: "This is, at best, a risky venture with public money which will leave the council saddled with a debt level which is unparalleled in its history."

As part of the plans for 425 homes, 115 apartments are proposed for the land on the Southwater development, along with car parking.

The council proposes to build 44 homes on a strip of land next to the existing Hollinswood estate in the town, of which 32 will be classed as "affordable" with lower rents.

Two former school sites, Woodlands Primary and Malinslee Primary, have been earmarked for development.

A big development is also in the pipeline for Madeley Court, where 60 homes, two supermarkets and a restaurant are proposed.