Shropshire Council finance bosses told 'no' to repayment of £4 million for 'unsatisfactory' road project in Herefordshire

The money was lent by The Marches Local Enterprise Partnership (LEP) to Herefordshire Council as part of a £27m deal to help with the completion and delivery of the South Wye Transport Package.

But LEP bigwigs believe that Herefordshire Council has not progressed with the project.

As a result, bosses at The Marches LEP agreed in January to seek the return of the funds.

The package includes a proposed road which would link the A49 Ross road and A465 Abergavenny road south of Hereford and is currently under review.

Shropshire Council's chief finance director James Walton, who is acting on behalf of the LEP, had written to his counterpart in Herefordshire on July 20 asking for the funds to be repaid within 20 days.

In response, Andrew Lovegrove, Herefordshire Council's chief finance officer, said they do not believe work has been "unsatisfactory" and that there is "no requirement for Herefordshire Council to repay the grant".

Marches LEP said discussions are ongoing with both authorities in Herefordshire and Shropshire.

An LEP spokeswoman said: "The Marches LEP board agreed at its meeting in January 2020 to seek the return of £3.8m of Government Growth Deal funding provided to Herefordshire Council.

"This was part of an allocation to support the construction of a link road as part of the South Wye Transport Package (SWTP). Herefordshire Council has not progressed plans for the SWTP and therefore the LEP has requested the return of the £3.8m.

"The LEP remains in discussions with partners at Herefordshire Council and Shropshire Council, which acts as the LEP’s accountable body for Government funding, so it would be inappropriate to comment further at this stage."

In February 2016, Shropshire Council, on behalf of the Marches LEP, entered into an agreement to make £27m available for Herefordshire Council’s transport package.