Council plans £60 million fund for houses and businesses in Telford
A £60 million fund could be created for Telford & Wrekin Council to invest in new businesses and houses for rent.
The council is proposing the fund as part of its budget plans, and it would run over the next four years.
The council says the money will be split between investing in its own premises to rent to businesses, and new homes for private rent – some affordable.
The authority has experience in the field, having over the last four years built a number of new business units in areas such as the T54 and Hortonwood West sites.
Money for the fund will be borrowed, but the council says that the proceeds from rents will pay for repayments, and provide extra money for services such as adult social care.
The proposal is part of the council's budget proposal, which was backed by the cabinet on Thursday, and will be out to consultation until January 31.
The fund would also be used to support the continued growth of Nuplace, the council-owned homes for private rent company. This could see it double the size of its operation in the borough over the next four years.
Nuplace has built more than 329 new homes for rent, with more than 800 tenants. The council says it will earn an extra £1.17m this year as a result.
Councillor Lee Carter, cabinet member for finance said: “This would be a win-win for the borough, providing a further boost to our strong economy while earning the council new income to support social care.
“Extra investment for Nuplace would see more quality homes for private rent, where demand already outstrips supply. It will regenerate brownfield sites, boost employment and set higher standards for landlords to follow.
“Similarly we know there’s huge demand from growing businesses for new premises in the borough and this would capitalise on this."
Council leader Shaun Davies added: “We’re ideally placed to meet the demand from business who want to come here, expand and grow in Telford and Wrekin.
“This will create more jobs and opportunities for our residents, while also earning the council extra income through more business rates and rental income, providing vital extra funding for services such as social care.”