28/02/2011 - Permalink

Millions of pounds invested in local economy by council

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Shropshire Council is continuing to plough millions of pounds into local projects, giving a huge boost to the local economy.

The council’s capital spending will amount to almost £95 million in the 2010/11 financial year, and just over £171 million from 2011/12 to 2014/15. Council leader, Keith Barrow, said the spending was a clear indication of the council’s commitment to investing in the local economy, despite severe reductions in Government funding.

The proposed spending for the next four years has been reduced by £39.7 million from original proposals set out in 2010 because of the huge political and financial changes that have taken place over the past year. Councillors will consider the new capital strategy at a meeting of the council’s Cabinet on Tuesday (15 January).

Councillor Keith Barrow said:

“The capital schemes being undertaken by the council represent a real investment in Shropshire. Although we are having to remove some projects from the strategy due to cuts in Government funding, I think the fact we are investing £171.4 million over the next four years is fantastic news for residents and businesses.

“One of the reasons we are removing some schemes is because a large proportion of them were going to be funded by prudential borrowing. The interest on that borrowing would ultimately be paid by council tax payers, and I think it would be irresponsible of us to spend over and above our means during these tough economic times.”

The schemes proposed to take place over the coming years include:

  • Shrewsbury Music Hall refurbishment (£7 million in 2011/12)
  • Market Drayton inner relief road (£1.5 million in 2011/12)
  • £900,000 available for community projects through the Rural Enterprise Fund
  • £2 million investment to improve broadband provision

Reductions in spending have been achieved by removing some planned projects, but also by replacing capital funding by other means such as applying for grants. Schemes proposed to be removed from the current spending plan include upgrade work at Shrewsbury Crematorium, improved access at Rowley’s House in Shrewsbury and a “transport hub” in Ludlow.

Councillor Barrow said:

“We need to be clear that the council is going to be a very different organisation in the coming years, and we will no longer be delivering all local services ourselves. As part of that change, some aspirational projects which were in the pipeline are no longer affordable at the moment – which isn’t to say they are off the agenda forever. I can assure residents and businesses that we are still very much committed to investing in big local projects, as this capital strategy report demonstrates.”

The report can be found as part of the Cabinet meeting papers on the council’s website at www.shropshire.gov.uk