'We have inherited a near impossible situation' - New Lib Dem council asks government for relief road 'off ramp'

Prior to the election the Lib Dems had joined with the Labour and Green groups on the council in writing to the government to pledge that they would cancel the road, which includes the Oxon Link Road, if they secured a majority on the authority.

• Get the latest headlines delivered straight to your inbox with the Shropshire Star’s free newsletter

Now, having swept to a commanding win in the May 1 poll the Lib Dems have sent a fresh request to the government.

In it they ask for discussions over the financial liabilities for the scheme.

Before the election the previous Conservative administration had warned that the terms of the government grant for the road mean that the council will have to pay back £39m if it chooses to cancel the project.

But, to continue with the project the new administration potentially needs to find another £130m - or more.

Both the Lib Dems and the Green Party have highlighted the situation facing Norfolk County Council as a template to solve the issues.

Earlier this year it was confirmed the government would not ask for £33m of funding back after the authority withdrew its planning application for the Norwich Western Link in January.

That application was withdrawn due to insurmountable environmental issues relating to rare bats.

In the letter to the government the Lib Dems' leader elect, Heather Kidd, and her deputy, Alex Wagner, ask for a meeting to discuss the status of the scheme having "inherited a near impossible situation".

They said: "As the incoming administration, the Liberal Democrats are deeply concerned by the lack of ‘off ramp’ for the projects, which as it stands are not fully funded by Central Government.  

"The DfT had initially committed £54 million to the scheme, with Shropshire Council making up most of the remainder of the original £71 million alongside other partners.

"Estimated  costs, both through construction market inflation since the 2017 Outline Business Case stage and unavoidable delays through the planning process now stand at an estimated £215 million.

"Given the financial precarity of the Council, we cannot guarantee that this funding gap can be covered, nor can we in good faith argue that it would it be financially responsible to borrow to cover the current shortfall in funding.

"As a result, the incoming Liberal Democrat administration feel that we need an open and honest discussion with the Department for Transport – like those recently held with Norfolk  County Council – about the scheme, and the options for Shropshire Council going forward.  

"There are potentially less costly alternatives which could achieve the main aims of the scheme – namely reducing traffic and congestion in Shrewsbury and supporting economic  growth.

"Taxpayers rightly demand that their money is spent wisely, and we feel we have inherited a near impossible situation to progress the scheme which is only likely be solved by intervention from ministers. 

"Please can we request a meeting as a matter of urgency to discuss this topic?"

Responding to the letter Shrewsbury Green Party Councillor Julian Dean welcomed the move.

He said: "It’s good to see the new administration reaching out to the Government to solve the disastrous Tory legacy they’ve inherited over the NWRR and Oxon Link Road.

"These projects are now too expensive to build, yet the terms of the deal with the Department for Transport means Shropshire Council is at risk of bankruptcy if they cancel them and are forced to pay back the £39m spent to date.

"Norfolk Council recently cancelled its £274m Wensum Link Road and negotiated a deal with the Department for Transport to write off £33m of pre-build spend.

"Norfolk is also talking to the DfT about investing in other solutions to their traffic issues.

"I’m hopeful the new Liberal Democrat administration in Shropshire will do the same. Shropshire’s Green councillors have consistently called for a Plan B, including our proposal in February – voted down by the Conservatives – which called for the council to open negotiations with Government on an “off ramp” and for the shifting of financial support to the Shrewsbury Moves strategy – exactly what the new administration is now doing. 

"The Shrewsbury Moves strategy – a ten year vision to prioritise public transport, cycling and active travel to reduce unnecessary car journeys – is an excellent template for the future. In the meantime, we will continue to fight against this road to ruin."