Issue - meetings

M5 Junction 10 Improvements Scheme – Funding Update

Meeting: 27/03/2024 - Cabinet (Item 8)

8 M5 Junction 10 Improvements Scheme – Funding Update pdf icon PDF 276 KB

Additional documents:

Decision:

Cllr Mark Hawthorne on behalf of Cllr David Gray kept Cabinet updated on the M5 Junction 10 Improvements Scheme Funding requirement and set out funding proposals in relation to delivery of the M5 Junction 10 Improvements Scheme, including how the council intended to secure contributions from development sites benefitting from the scheme.

 

Having considered all the information, Cabinet noted the report and

 

RESOLVED to:

 

1. Acknowledge that revisions will be required in the future to the Highways Capital budget in relation to the scheme up to a value of £334.270 million, on the basis of £249.131 million secured HIF funding, £4 million secured GCC funding and notes the remaining gap of £81.139 million, in funding for the M5 J10 improvement scheme and confirms its intention to seek to raise those funds through section 106 contributions from developers.

2. Approve the principle of requesting Section 106 contributions toward the M5 Junction 10 Improvements Scheme from development sites benefiting from the scheme, with such contributions being sought under policy INF7 of the Joint Core Strategy (Appendix 1 - JCS AdoptionVersion November 2017.pdf (gloucester.gov.uk)) and/or any subsequent policy replacement.

3. Delegate authority to the Executive Director of Economy Environment & Infrastructure in consultation with the Cabinet Member for Environment and Planning and the Chief Finance Officer to negotiate and determine GCC’s position with regard to the scope, mechanism and levels of contribution being south from each development site under policy INF7 of the Joint Core Strategy and/or any subsequent policy replacement.

Minutes:

8.1      Cllr Mark Hawthorne, on behalf of Cllr David Gray, updated Cabinet on the M5 Junction 10 Improvements Scheme Funding requirement and set out funding proposals in relation to delivery of the M5 Junction 10 Improvements Scheme, including how the council intended to secure contributions from development sites benefitting from the scheme.

 

8.2      The report also contained detail of the revisions that would be required in the future to the Highways Capital budget in relation to the scheme, up to the value of £334.2m, which was on the basis of £250m secured from HIF funding, £4m secured GCC funding and therefore noted the remaining gap of £81m in funding.

 

8.3      It was advised that the intention was to seek to raise those funds through Section 106 contributions from development sites benefiting from the scheme. He reminded members that a number of these development sites could only take place if this particular piece of infrastructure was upgraded and equally, it was important to remember that these sites were delivering specifically to the Joint Core Strategy for Cheltenham, Gloucester, and Tewkesbury.

 

8.4      He confirmed that the further funding would be required at the later stages of construction of the Scheme, during financial year 2027-2028. GCC had yet to commit to a construction contract for those works and a further executive decision would be required for this. Therefore, GCC were not exposed to financial risk associated with the funding gap as a result of the cabinet decision.

 

Having considered all the information, Cabinet noted the report and

 

RESOLVED to:

 

1. Acknowledge that revisions will be required in the future to the Highways Capital budget in relation to the scheme up to a value of £334.270 million, on the basis of £249.131 million secured HIF funding, £4 million secured GCC funding and notes the remaining gap of £81.139 million, in funding for the M5 J10 improvement scheme and confirms its intention to seek to raise those funds through section 106 contributions from developers.

2. Approve the principle of requesting Section 106 contributions toward the M5 Junction 10 Improvements Scheme from development sites benefiting from the scheme, with such contributions being sought under policy INF7 of the Joint Core Strategy (Appendix 1 - JCS AdoptionVersion November 2017.pdf (gloucester.gov.uk)) and/or any subsequent policy replacement.

3. Delegate authority to the Executive Director of Economy Environment & Infrastructure in consultation with the Cabinet Member for Environment and Planning and the Chief Finance Officer to negotiate and determine GCC’s position with regard to the scope, mechanism and levels of contribution being south from each development site under policy INF7 of the Joint Core Strategy and/or any subsequent policy replacement.