North West Relief Road is 'dead in the water' and was 'never funded' says Shropshire Council leader
The North West Relief Road is "dead in the water" and was "never funded," Shropshire Council's new leader has said in a damning new statement.
Councillor Heather Kidd, the Liberal Democrat leader of the authority who took control in May, issued an update on the tortured Shrewsbury road project at this morning's (Wednesday, July 9) meeting of the council's cabinet.
In a lengthy statement she said the road, which would now cost £215 million to build, was "never funded" and that the previous Conservative administration had been "sold a pup", over the backing for the project.
Councillor Kidd reiterated that discussions with the Government are now focused on ensuring the council does not have to pay back £39m of Department for Transport funding.
Councillor Kidd also said there would be discussions on whether the council can use any of the money left from the original £54.4m government grant for the road for other projects, such as improving Shrewsbury's existing Battlefield and Dobbies roundabouts.
She said that borrowing estimates for the North West Relief Road mean the council would have to take out a loan of £155m to finish the project - costing taxpayers "£6m a year for decades", and with no guarantee costs would not rise further.
Opposition leaders said the council should hold an inquiry into the spending on the project, with Reform's Dawn Husemann questioning how £39m had been spent without a "single centimetre of tarmac to show for it".
The Conservative group leader, Councillor Dan Thomas, said there would be great disappointment for many that the project would not proceed.
Addressing the meeting Councillor Kidd said: "As you all know the North West Relief Road is a controversial road: some people have loved it, some people have hated it.
"But we are in a position where we can no longer afford it in either direction.
"The meeting held with the Department for Transport on June 23 made it clear that the policy was only ever to fund two thirds of the original scheme.
"And at most that was going to be £54.4m.
"The last Government never built any other offers into the budget or to the policy.
"This is underlined in the letter from Lillian Greenwood MP that was received yesterday.
"100 per cent funding for our scheme is therefore dead in the water and was never funded when offered to the previous highways portfolio holder verbally.
"So 100 per cent funding was never built into their policy."
The letter from Mrs Greenwood has also placed the relief road on a list of schemes which are now 'under review'.
Councillor Kidd said the financial aftermath of the failed project could have dire consequences for the council.
She said: "This leaves Shropshire Council with an ever-increasingly costly scheme - now estimated to be £215m, leaving us with a minimum borrowing of £155m, it could cost considerably more because construction costs are spiralling.
"Borrowing that sort of money would cost our residents around £6m a year for decades - that is simply more services axed.
"We have £60m of savings, we are very close to the line on what we have got to save, and another £6m a year is just unaffordable.
"We have now paused the road and stopped all work on site pending discussions with the minister.
"We are working with the Shrewsbury MP Julia Buckley to make sure this is brought forward as soon as possible.
"Those discussions will be around the £39m already spent on the site.
"We need that to be what they call 'off ramp' - written off as in Norfolk [where plans for a Norwich Western Link were abandoned earlier this year] so this does not stress our budget any further.
"Because if this comes back into the budget we would be immediately in a position of not being able to balance the budget, which is not a lawful position."
Councillor Kidd said there would need to be alternative discussions about improving traffic in Shrewsbury.
She said: "We are taking the traffic problems in Shrewsbury very seriously and we will be putting forward other ways of helping ease these problems if we possibly can.
"Areas we may put forward to the minister could be around Battlefield Enterprise Roundabout, which is a nightmare in the morning and may open up other land, but also the Dobbies Island, which is dreadful and often forces traffic through the town."
Councillor Julian Dean, leader of the Green and Progressive Group, said that while it was important to understand how the project had foundered, it is vital to look to how to address Shrewsbury's current issues.
He said: "I appeal both to the council and campaigners to really take this opportunity to try and really pivot to a better outcome for Shrewsbury."
Rosemary Dartnall, leader of the Labour Group, said the council had been left in a "dreadful predicament" by the previous administration, and said: "This controversial mega-project has been criticised by many including the auditors, which is not something that happens often. Auditors called into question the project governance, the lack of a plan B, et cetera.
"It was secretive and opaque. Delegated spending has been far exceeded not once, but twice."
She queried the future of the Oxon Link Road and other projects and questioned whether an inquiry into the handling of the project would take place.
Responding Councillor Kidd said the focus currently is around what happens to the £39m and "whether we can get something back to improve other areas".
'We need transparency'
Councillor Dan Thomas, leader of the Conservative Group, said it was disappointing to witness the demise of the project - contrasting it with celebrations in Telford and Wrekin over the M54-M6 link road which was confirmed this week.
He said: "With the business case for the North West Relief Road being so strong the indications the Conservative Group and the administration previously had were good, so it is bitter disappointment really."
He highlighted other schemes across the country where the completion of a ring road has been followed by other measures to improve traffic affecting towns.
He added that the developments would be hugely disappointing for people in villages to the north of Shrewsbury.
Replying, Councillor Kidd said: "I would hate to say this to you but I think your group were sold a pup."
Dawn Husemann, leader of the Reform Group, queried how it has been possible to spend £39m with no road to show for it.
She said: "I have raised a members inquiry asking for information about how we managed to spend tens of millions and not have a single centimetre of tarmac to show for it."
She added: "To me that level of transparency would be appreciated."
Reacting Councillor Kidd said: "That will be forthcoming because we need to see that."
