📣 𝗕𝗥𝗘𝗔𝗞𝗜𝗡𝗚 𝗡𝗘𝗪𝗦 | Herefordshire Council's Cabinet Would Like To Move Forward With Phase 1 Of Hereford Western Bypass.

[Hereford Voice]

Herefordshire Council’s Cabinet has agreed proposals of £58million, with £21million planned for investment in the coming financial year.

The proposed Capital Programme for 2025/26 presented at the Cabinet meeting today (Monday 13 January 2025) outlined an ambitious programme of capital investment aligned to the priorities of the Council Plan.

The report outlines proposals for £58.12million of investment over the next four years. The proposed additional £21million in 2025/26 will fund a range of projects that encourage active lifestyles for children and young people through investment in play areas, deliver new infrastructure to support housing and business development, reduce the impact of flooding and improve the condition of roads and road safety across the county.

Councillor Jonathan Lester, Leader Herefordshire Council said: “This report outlines our plans for £58.12million of investment over the next four years. This includes an additional £21million in 2025/26.

“In our County Plan we set out how we are going to deliver the best for Herefordshire in everything we do. We are proposing that this additional funding is invested in those key priorities local people have told us are important to them.

“This includes £7.5million additional spending on road resurfacing and highways infrastructure in the coming financial year, meaning that between 2023 and 2026 we will have invested an extra £29.7million in this important area, to benefit residents and businesses.

“We are also proposing an additional £1.5million for road safety schemes in 2025/26, and just over £1million for measures in areas at risk of flooding. We’ve also identified £500,000 this year for children’s play area investment with a further £500,000 in 2026/27.

“This is an ambitious programme of investment and improvement for 2025/26 and onwards to ensure the council is doing all it can to deliver the best for Herefordshire.”

The proposals will now be recommended to Council for approval at its meeting on Friday 7 February 2025.

The full report which includes outline details of each project is available on the council website at Agenda for Cabinet on Monday 13 January 2025, 2.30 pm - Herefordshire Council.

Inclusion of any project in the capital programme is not agreement to proceed, and each project will need a full business case and approval where required.

202526 Draft Capital Investment Budget and Capital Strategy Update.pdf

[Hereford Voice]

Do you think this will ever happen?

 

[Hereford Voice]

Questions from Jeremy Milln, Hereford to Cllr Stoddart

• The proposed Southern Link Road (aka Western Bypass Phase 1) is now estimated to cost £40.3 million (£35m construction, £5.3m for D&M), apparently to be funded using £5M of capital receipts and £35.3M of public borrowing. The Capital Strategy states that funding above £6.7m is available to support capital investments that give a clear pay back through revenue budget savings. How much of the interest payable on this borrowing is contributing to the deficits of £1.217m in 2026/27 and £5.266m in 2027/28 and what revenue will be generated by the scheme to pay back the £35.3m of borrowings and interest over the 40 year repayment period?

Response:

The additional borrowing to fund the proposed £30m addition to the capital programme for 25/26 has a revenue budget impact aligned to the term of borrowing.

Repayments of borrowing and interest will be accounted for by reducing the value of the borrowing in the council’s balance and recognising an interest
expense in the revenue account.

The impact on the revenue budget in each year of the MTFS is noted below:
▪️ 2026/27: revenue impact of £0.25m (assuming borrowing of £5m in 25/26)
▪️2027/28: total revenue impact of £1.0m (assuming borrowing of £5m in 25/26 and further borrowing of £15m in 26/27)
▪️ 2028/29: total revenue impact of £1.5m (assuming borrowing of £5m in 25/26, and further borrowing of £15m in 26/27 and £10m in 27/28)

The council is committed to bringing forward the first phase of the Western Bypass. Once completed, this new bypass connection for the A49, from the south to the north of the city, will deliver the Western Growth Corridor, creating over 10,000 new homes and over 300 acres of employment land.