Issue - meetings

To receive a report from the Director of Place to inform Cabinet of the latest position regarding the Tiverton HIF/A361 junction scheme and to seek decisions regarding next steps.

The Cabinet were presented with a report from the Director of Place, which informed Members of the latest position regarding the Tiverton HIF/A361 junction scheme, seeking decisions regarding next steps.

The Cabinet Member for Planning and Economic Regeneration noted that Members would recall that the July Cabinet had agreed further work by officers to seek additional funding to support delivery of the project or to reduce costs and scope to facilitate delivery. The report set out that it has unfortunately not proved possible to secure further funding and that officers did not believe that the project could to be delivered within the current budget, even with a reduced scopeA recommendation was therefore set out to pause delivery and progression of the scheme.

The Cabinet Member emphasised that pausing the scheme had not meant that it would not or could not be delivered in the future and that the risks were considered as set out in the report.

The Leader thanked the Cabinet Member for their presentation and sought clarification that if the phase 2 junction was paused, would this have an impact on the number of houses developed within that area. The Director of Place explained that it would not have an impact on future housing developments. 

A Cabinet Member raised their support and noted that other projects might have to be paused due to the current economic climate.

A Cabinet Member wanted to know whether there were other projects that could be funded by the Homes England HIF funding, to which the Director of Place explained that any other scheme would require potential housing developments to be unlocked, which would limit potential options,

A Cabinet Member noted that this was the right way to go.

RESOLVED: That

·        Cabinet instructs officers to pause progression and delivery of the next phase (phase 2) of the A361 junction owing to cost increases which make the project unaffordable at this time.

·        Cabinet instructs officers to continue to engage with Homes England with a view to identifying alternative options to utilise the HIF funding in order to support the delivery of other aspects of the Tiverton EUE scheme and, if alternative options are identified, to progress these to a stage where a viable proposition can be brought back for consideration by Cabinet.

(Proposed by Cllr C Slade and seconded by Cllr D Knowles)

Reason for Decision: Pausing delivery of the scheme at this time would delay delivery of the project, but the intention remains to deliver the project and deliver key objectives as established within the corporate plan. Borrowing to fund the ‘gap’ would add significant further financial pressures to the Council at a time of increasing economic and financial uncertainty and pressures and this approach is therefore not one which is considered prudent, and is not recommended.