Agenda item

To receive a report and recommendations from Cabinet in relation to approval of the financial implications associated with the Staged Payment Agreement with Leicestershire County Council (LCC) to Support Infrastructure Investment and enable the County Council to secure the HIF grant from Homes England.

The Leader introduced and moved the recommendations in the report. In doing so, the Leader summarised the situation which was by agreeing to contribute the sum of £1.75m towards infrastructure costs in Melton, it would enable Leicestershire County Council (LCC) to enter into a Grant Determination Agreement (GDA) with Homes England for the Housing Infrastructure Fund grant. Members were reminded that by not entering into the Staged Payment Agreement (SPA) with LCC, LCC would not enter into the GDA with Homes England and that this would jeopardise the forward funding of the southern section of the Melton Mowbray Distributor Road (MMDR).

Members were also informed that the Council has a long-standing commitment to support the development of the MMDR and the SPA would support LCC in their efforts to deliver this scheme. The successful delivery of the scheme would also support growth and investment in Melton Mowbray which underpins Melton’s Local Plan.

The Council was warned that as the SPA would represent a significant investment by the Authority, it must be accepted that resources might have to be removed from other priorities and that difficult decisions would have to be made in future given the ongoing financial challenge.

During the debate the following points were noted:

·       It was recognised that the agreement had taken a long time to negotiate and that an outcome of this should be closer collaboration between Melton Borough Council and LCC in the future.

·       In the context of the £160m infrastructure investment planned, the £1.75m is a modest contribution towards the scheme but a significant contribution for Melton Borough Council, however if it secures delivery of the MMDR then it is a necessary one.

·       A Member commented that despite some concerns, the arrangement should be supported because it would be beneficial to Melton Mowbray. The alternative would be unacceptable.

·       Members put on record their thanks to all Members and Officers who have worked on securing the arrangement.

Under Chapter 3, Part 1, Section 17.5, Councillors Orson, Browne and de Burle requested that a recorded vote take place on the recommendations.

RESOLVED

That Council

1.     Noted and endorsed the decision taken by Cabinet to enter into a Staged Payment Agreement with Leicestershire County Council (subject to Council approving the necessary provision is made in the Capital Programme).

2.     Noted that the agreement will fund a contribution by the Borough Council towards the costs incurred by the County Council in the provision of education infrastructure arising from housing associated with the construction of the MMDR South.

3.     Approved the financial implications arising from the agreement by making provision in the Capital Programme for a number of staged payments to the sum of £1.75m (initially funded by borrowing and subject to indexation as set out in the financial implications of the report).

The above resolution was voted for as follows:

For the Motion (23)

Bains, Bindloss, Browne, Carter, Chandler, Child, Cumbers, de Burle, Douglas, Evans, Faulkner, Fisher, Freer, Graham, Hewson, Illingworth, Lumley, Orson, Pritchett, Smith, Steadman, Wilkinson, Wood.

Against the Motion (0)

Abstaining from the Motion (0)