LEP to consider clawing back £4.2m relief road funding

Funding of £4.2 million towards the North West Relief Road could be withdrawn this week due to the lack of progress.

The Marches Local Enterprise Partnership (LEP) will meet on Thursday to discuss whether to recoup the funding it granted towards the scheme eight years ago.

The partnership says it has been “very patient” with Shropshire Council but has to be consistent in how it deals with non-delivery of projects.

It also notes the “strong local opposition” to the relief road.

The LEP’s contribution is allocated to the Oxon Link Road (OLR) element of the scheme, linking Churncote Island to Holyhead Road, but the entire relief road is being considered under one planning application.

A report to members reveals the council has told the LEP it could submit fresh plans to deliver just the 1.14km link road if the current application is rejected.

However the report says this would mean it would be over a decade between the funding being awarded and the project being delivered.

The recommendation to initiate clawback of the grant comes from the LEP’s performance, risk and monitoring committee, which met in June and said the step should be taken if planning permission was not granted at a meeting on July 18 as expected.

The report to the LEP board says: “We were then informed the week before that meeting that the planning application would go to a planning committee in September/late summer.

“It’s understood that the Environment Agency had concerns about the project which couldn’t be addressed before 18 July.

“The council feel these issues can be addressed though before the September LEP board meeting.

“There is also strong local opposition due to concerns about the need and cost of the scheme as well as the environmental impact, with campaigners pictured outside Shirehall earlier in July.”

The report says if the money is clawed back, it will be re-allocated to other projects.

Alternatively, if the board wants to continue to support the OLR, the report says new timescales will need to be agreed.

It continues: “The LEP has to be seen to be consistent in how it manages projects and deals with delays and non-delivery.

“If the LEP doesn’t follow the same process as it has for previous projects suffering similar issues then there is the risk of challenges and reputational damage to the LEP.

“There is an awareness of the financial situation at Shropshire Council, so any clawback decision should be mindful of the implications this may have for the council and how the LEP needs to manage the implications and communications.

“While the LEP has been very patient and accommodating with the OLR project, it has left the LEP exposed to criticism that a project that received funding eight years ago hasn’t yet been delivered.”

The report adds that the funding would need to be re-allocated this year due to uncertainty about the future of the LEP.