Decision details

The Cabinet had before it a report * from the Director of Place and Economy on the Cullompton Town Centre Relief Road.

The Cabinet Member for Planning and Economic Regeneration outlined the contents of the report with particular reference to the following:

• At the Cabinet Meeting on the 4June 2024, Members received an update on various strategic transport infrastructure schemes in Cullompton and that, at that time, the Council were awaiting a decision from Homes England regarding the possibility of additional funding to ensure delivery of the Cullompton Town Centre Relief Road.  This decision had been deferred as a result of the general election that subsequently occurred in July 2024.
• In August, Homes England subsequently confirmed a positive decision by its Board to make available the full funding needed to deliver this hugely important scheme.
• This progress was vastly significant given that the Town Centre Relief Road was of key importance to improve the amenity of the town centre, tackle air quality problems and unlock housing in the area. Furthermore, the vast majority of Cullompton residents were keen to get this scheme delivered, with 92% of local residents supportive of the Relief Road proposal when asked earlier in 2024.
• Since that time, officers had been working hard to continue to progress the scheme.  Proactive and positive steps had been taken in relation to the relocation of the Cricket Club, remobilisation of the design team and in making meaningful progress with Tesco in relation to the purchase of its land required to deliver the Relief Road.  The latter had recently taken a welcomed and positive step in confirming the sale (subject to contract) of its land to support delivery of the road.  
• Building-on and continuing this progress, the report provided an update, but also sought authority to enter into updated agreements with Homes England and Devon County Council which were necessary in order to now fully enable delivery of the Relief Road.
• The Homes England Grant Funding Agreement issued to Mid Devon was set out in a standard form and was an updated version of the previous contractual arrangements that were with them for the initial Housing Infrastructure Grant.  Officers, including the Legal Services Manager, had reviewed the draft Agreement and would continue in negotiating and discussing specific matters and wording with Homes England.
• Similarly, the agreement with Devon County Council was also being updated to reflect the latest Homes England requirements and to ensure that the funding could readily be made available to the County Council to enable delivery of the road within the availability period of the grant funding. It should be noted that inflation and contingency had been allowed for within the project cost estimates/funding envelope and that the Council’s cost liability would not exceed the funding envelope as set out. As Delivery Partner, Devon County Council would be responsible for delivery of the project - including cost, risk and programme. Updated and strengthened governance arrangements were being put in place to provide delivery assurance to the Council and to create a strong platform for delivery of this key infrastructure. Devon County Council was expected to also take a paper before its Cabinet in December 2024.

Discussion took place regarding:

• Was the agreement with Homes England binding once the Council entered it and could Homes England withdraw their funding once the agreement had been signed?
• At what point would the Relief Road become certain? Was it upon contract signing or at any other critical decisions point where the project could fail?
• Were there any alternative options to Devon County Council as a delivery partner in terms of value for money or contingency plans?
• The grant from Homes England and would this be recouped from S106 contributions and the fund retained by the Council for further potential infrastructure projects. Would these funds be ring fenced for infrastructure that would benefit Cullompton?  

RESOLVED that:

1. The entry into an updated Grant Funding Agreement with Homes England to secure £33.5 million of Housing Infrastructure Fund monies and grant delegated authority to the Director of Place and Economy in consultation with the Section 151 Officer and Director of Legal, People and Governance to finalise and sign the agreements in consultation with the Cabinet Member for Governance, Finance and Risk and Cabinet Member for Planning and Economic Regeneration be APPROVED

2. The entry in to an updated Agreement with Devon County Council (as Delivery Partner) to enable delivery of the Relief Road by the County Council as Highways Authority, in consultation with the Cabinet Member for Governance, Finance and Risk and Cabinet Member for Planning and Economic Regeneration be APPROVED

3. The use of Homes England Capacity Funding (£109,150) to support work streams during this financial year (2024/25) be APPROVED

4. To grant delegated authority to the Director of Place and Economy in consultation with the Section 151 Officer and Director of Legal, People and Governance to enter into any subsequent legal agreements should they become necessary to facilitate the completion of the project and in consultation with the Cabinet Member for Governance, Finance and Risk and Cabinet Member for Planning and Economic Regeneration be APPROVED 

(Proposed by Cllr S Keable and seconded by Cllr J Buczkowski)

Reason for decision: As stated in the report

Note: * Report previously circulated.