For cabinet to set out its recommendations to council with regard to stopping the western bypass and southern link road schemes and amendment to the capital programme.

For cabinet to agree allocation of ear marked revenue reserves to cover the costs of decapitalising the two road schemes in the event that council agrees to stop the schemes.

Following Cabinet’s recommendation of 3 December 2020 to stop the western bypass and southern link road schemes THAT:

(a)  Cabinet also recommends to council that the Hereford Transport Package and South Wye Transport Package be removed from the capital programme; and

(b)  Subject to Council agreeing to stop the western bypass and southern link road schemes, cabinet, instructs the chief finance officer to allocate the finance resilience earmarked reserve amounting to £11.833m to cover the costs associated with the western bypass and southern link road schemes being de-capitalised.

1.    There are no alternative options to this report if cabinet wishes to progress its recommendation of 3 December 2020 to stop the western bypass and southern link road schemes. Both schemes are included in the core strategy and local transport plan and the Monitoring Officer has confirmed that stopping these schemes would constitute a change to the budget and policy framework and this is a decision which can only be made by full council. The financial consequences of stopping these two schemes is that an amendment to the capital programme is required to remove the Hereford Transport Package project which currently funds the development of the western bypass and the South Wye Transport Package project which has funded the southern link road. The capital programme can only be amended with the agreement of council. Finally, as was reported 3 December 2020, stopping these schemes will result in the projects being decapitalised as confirmed by the Chief Finance Officer and capital spend to date will need to be funded from ear marked revenue reserves.