For Cabinet to approve the amendment of £360k from the financial resilience earmarked reserve to fund costs associated with the review of the Hereford Transport and South Wye Transport Package to be completed by 31 July 2020.

The cabinet member finance and corporate services introduced the report. She explained that the review of the transport packages needed to be properly resourced so that it delivered the evidence required. The financial resilience reserve stood at £10m and it was considered that use of £360k from the reserve was affordable and appropriate.

The cabinet member infrastructure and transport explained the reasons for the review of the strategy that had been inherited from the previous administration and noted that only £91k would be spent on a peer review of the work done to date on the transport packages. The £360k to be funded from the reserve would consider alternative transport options. All three elements of the review would be completed by 31 July 2020 and would include wide ranging consultation. Input from scrutiny would be welcomed.

It was noted that introducing 20mph limits in residential areas would not form part of the options considered under this review but that this could be progressed alongside.

Group leaders were invited to express the views of their group. It was stated that:

·        There was anger from some residents and business about the delay and concern that a bypass would not be delivered;

·        If there were options to relieve congestion more quickly than constructing new roads then these would be welcomed by most businesses;

·        There had already been considerable expenditure on assessing the southern link road project and Hereford transport package to determine that it was the right thing to do;

·        The delay had resulted in the grant funding for the southern link road being lost and the prospect of £3.8m being clawed back by the LEP would spend all of the proposed council tax increase for 2020/21;

·        The southern link road was an important project which would connect to the Hereford enterprise zone and open up land that was needed for growth;

·        The packages put together by the previous administration included active travel measures and it was believed that the review would demonstrate the need for the planned bypass.

In response to points raised cabinet members noted that issues with the governance of the procurement exercise in relation to the south wye transport package meant that the council could not be assured that value for money could be delivered. These problems had been inherited and caused unfortunate delays. In addition, the council had declared a climate emergency in March 2019 and this needed to be taken into account. The cabinet sought to deliver the aims and objectives that had been inherited with alternative schemes.

It was agreed that:

(a)     Cabinet approves the amendment of the financial resilience reserve reducing by £360k to fund the costs to complete the review work associated with the Hereford Transport and South Wye Transport Package.