A local authority is on the brink of financial collapse due to a £200 million infrastructure project that was never completed.
Shropshire Council mentioned that it could need to take on as much as £100m in loans to prevent running out of funds by April 2026.
Liberal DemocratLeader Heather Kidd mentioned that the authority might seek additional financial assistance from the government as it struggles to manage its finances.
A report indicates that one of the major risks to the council's 'financial stability' is the financing of the previously canceled £215m North West Relief Road – a four-mile (2.5km) bypass surrounding Shrewsbury.
A shocking £39 million had already been invested in the unsuccessful project, with nearly £22 million allocated to consultants, prior to the new Liberal Democratthe administration shut it down in the summer, stating it could no longer bear the costs.
The plan was first proposed by the former Conservative government, intending to decrease traffic jams and environmental harm in the city center.
However, it faced resistance from opposition parties and environmental organizations, while a petition aimed at preserving a 550-year-old tree called The Darwin Oak, named after Charles Darwin, gathered over 100,000 signatures.
The initial projected cost for building the road was £87.2m, but it increased to £215m.
A series of empowerment initiatives had been initiated by the former council. This involved £21.875m allocated for fees paid to design engineering consultants and £7.975m spent on 'pre-construction agreements'.
The Transport Ministry (DfT) had provided the council with a grant, but subsequently stated that it would not provide any additional funds beyond the initial amount allocated for the project.
Ms Kidd mentioned that if the Department for Transport chooses to reclaim its grant, valued at as much as £54.4 million, the council would need to take out loans amounting to tens of millions of pounds.
She mentioned to the BBC that repaying the DfT grant, given in 2019, would 'push the council beyond its limits'.
The organization was among 29 councils that received Special Financial Assistance last winter, totaling £1.5bn.
An independent 'improvement board' is currently being established to review and examine expenditures prior to the council determining if it should seek assistance from the government.
It is anticipated that the board will be in place by the next council leaders' meeting, which is set for 15 October.
Meanwhile, activists are calling for an investigation into the issues that occurred with the road.
A campaign group named Better Shrewsbury Transport (BeST), which has consistently been against the project, has sent a letter to the heads of Shropshire Council urging a 'comprehensive and detailed' investigation into how the initiative was managed.
Mike Streetly of BeST mentioned that individuals across the region are 'angry' regarding the 'relief road issue' and are wondering how £39m has already been utilized.
He added, "It is evident that there has been a major issue. A comprehensive and detailed investigation is the sole method to understand the lessons and assure the public that such an incident will not recur."
When the Liberal Democrats were in the opposition, they advocated for an investigation into the NWRR. We are now urging them to act on this as they are in power.
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