A133-A120 Link Road

Tuesday 28th January 2025 Westminster Hall

16:00

[Graham Stringer (in the Chair)]

Order. I will call Sir Bernard Jenkin to move the motion and the Minister to respond. There will not be an opportunity for the Member in charge to wind up, as is the convention for 30-minute debates. I have been informed that two hon. Members have been given permission by the mover and the Minister to speak in the debate.

[Sir Bernard Jenkin (Harwich and North Essex) (Con)]

I beg to move,

That this House has considered Government funding for the A133-A120 link road.

Thank you very much, Mr Stringer. There may even be a third intervention from a colleague, which I hope will be all right with you. I should have notified you in advance, for which I apologise. I thank the Minister for taking part in this debate regarding the further funding of the new A1331 link road.

The top line is that central Government must fund phase 2 of this road. The previous Government committed to do so, and provided 100% grant via a housing infrastructure fund grant of £99.9 million in 2020. Since then covid and inflation have struck, and the grant is now £50 million to £60 million short of what is needed to complete the road. That estimate is hearsay and not official, but it does not seem unreasonable.

Essex county council has started the construction of phase 1 but phase 2 is not funded. The Government’s housing targets for Colchester and Tendring cannot be met without this vital new road. This development of 7,500 new homes is very substantial, but I support and understand the need for it. However, the development cannot be justified unless the road is completed in advance. Indeed, without completion of the road, the developers may well stop investing in the houses because the traffic will be intolerable and the new homes found to be unsaleable.

The proposed Tendring Colchester Borders garden community—or TCBGC—located between the A120 and the A133 north of the University of Essex, includes new primary and secondary schools, dedicated employment spaces, a nature reserve and a commitment to 30% affordable housing. The new homes will generate a huge increase in traffic. The new direct access to the A120 and the A133 is essential for the viability of the development. It will also significantly mitigate local adverse traffic impacts, both during the construction phase and as the new homes are occupied.

The whole project now hinges on phase 2, which will complete the link to the A120. Without phase 2 the A1331 will be a road to nowhere, and only add to traffic on already congested roads. There is no viable or agreed funding for phase 2. I hope I do not have to disabuse the Government of that fact. Many councillors and local people fear that phase 2 will never be completed. So far, the Government have told the county council, “There is no budget” for any additional funding.

My first question is this: will the Government please now consider making up the shortfall? I wrote to the Ministry of Housing, Communities and Local Government on 11 November and received a reply just last night. These debates have a purpose: they provoke a response. I am grateful for the Minister’s letter, in this case from Baroness Taylor, in which she states:

“Essex county council and Latimer (the housing developer) have committed to use reasonable endeavours to procure delivery of phase 2…And in order to safeguard its delivery, there is a planning policy requirement for the developer to demonstrate funding is in place for the full link road.”

I put it to the Minister that this really is wishful thinking. Think about it: 7,500 homes and a £60 million contribution to finish phase 2—that is £8,000 per home, and that is just for the road. Where is all the other section 106 funding required for this development going to come from?

[Pam Cox (Colchester) (Lab)]

It is a pleasure to serve under your chairship, Mr Stringer. I thank the hon. Member for Harwich and North Essex (Sir Bernard Jenkin) for securing the debate.

In November 2024 I had the pleasure of joining partners from Essex county council, Colchester city council, Latimer, Clarion Housing and Homes England, as well as contractors, to see the start of phase 1 of the link road. As the hon. Member rightly said, it is just phase 1, and we need phase 2 to be completed. Speeding up phase 2 by creating a deal with those partners, including the Government, will be a vital part of that. I hope he will support initiatives around that, as we have already been having those kinds of discussions. I also invite the Minister to visit the project to see just how short a link road will be required to complete what will be an outstanding development that straddles both our constituencies.

[Sir Bernard Jenkin]

The hon. Lady is clearly keener on the development than I am, but if the Government come up with some money to make this whole development viable again, I will of course resume my support for it. I would also very much welcome a visit from the Minister, but it remains to be seen whether we will get one. I am afraid that I refused to attend that event in November because I thought it was irresponsible to start a road if nobody knew how it would be funded or when it would be completed. The Minister may, in her response today, refer to a December memorandum of understanding on this matter between Essex county council, the Colchester and Tendring councils and Latimer, but I have to point out to her and to the Department that this is not a binding agreement. Paragraph 1.6 states that the funding of infrastructure, including the A1331 link road, is contingent, and that it

“will only be possible if the overall delivery of TCBGC is financially viable.”

Remember that it is £8,000 per home just for the road. TCBGC will no longer be financially viable. Financial contributions through section 106 will not be enough to cover the cost of phase 2 of the road along with all the other essential infrastructure plans for this development.

What has got to give? Will we finish up with more GP practices closing their lists and not accepting more patients, or more schools without places for local kids? Section 106 funding should be for local infrastructure, not for national infrastructure such as this proposed new A road. The clue is in the term “A road”—it is part of the trunk road network. What is the benefit-cost ratio for this new road? The original funding application said 7:1. A 7:1 benefit-cost ratio is well above the threshold of “very high”, which is only 4:1, so this public investment will give very big payback for the local economy, jobs and tax revenues.

Can the Minister provide us with a benefit-cost ration for just phase 1, which the Government have now retrospectively agreed to fund on its own? This was approved via a material amendment to the grant determination agreement that the Government have signed, allowing the county council to build just phase 1 with the grant money so far allocated. The Government agreement makes them complicit in the wishful thinking that this development will be viable. My guess is that the benefit-cost ratio for just phase 1 will be at rock bottom. It will have very little economic benefit at all, and would never have passed muster if it had been proposed as part of the funding arrangements at the outset.

Without knowing what the phase 1 benefit-cost ratio is, how could the Government possibly justify turning down the request for funding to complete the A1331 link road? I speculate that the benefit-cost ratio of finishing the road is off the scale because of the sunk costs already committed. Labour has promised growth and new homes to voters, but with infrastructure first—

[Marie Goldman (Chelmsford) (LD)]

Will the hon. Gentleman give way?

[Sir Bernard Jenkin]

I would have preferred earlier notice of the intervention, but I will of course give way to the hon. Lady.

[Marie Goldman]

I apologise to the hon. Gentleman and thank him for giving way. His point is about the importance of infrastructure coming first. Just down the road from the proposed A1331 is the A12 widening scheme, which affects my constituency of Chelmsford, which will potentially affect the delivery of 55,000 new homes, and for which we are waiting for confirmation of funding. Those homes would, of course, go a long way towards meeting the Government’s 1.5 million target. Does the hon. Gentleman agree that the “infrastructure first” principle is crucial, and that the Government must not overlook it when they are considering funding?

[Sir Bernard Jenkin]

If the Government want to achieve anything like their 1.5 million target, they will have to put the money up front for the infrastructure. Here is a shovel-ready deal for the Government to show their commitment to achieve their target of 1.5 million new homes in this Parliament. If the promised 7,500 new homes are not built because phase 2 of the A1331 is not completed, then Colchester city council and Tendring district council do not have a chance of achieving the Government’s ambition. Without phase 2 of the road being completed ahead of the new homes—which was the original intention—the most likely outcome is that the new garden community will be started and then stalled. There is already standstill traffic every day on the A133 where the southern end of the A1331 is intended to relieve traffic congestion. A few hundred new homes will just add to that gridlock.

In November, in my letter to the Secretary of State, I made it clear that I have not, until now, felt the need to object to this massive housing development in my constituency. I recognise the need for new housing, but my support is contingent on the principle of “infrastructure first”. If there is no new money from the Government and nobody can say when the road will be completed, I will object, and so will the vast majority of the people of Colchester and Tendring. The Government are shifting responsibility on to the developer and local authorities for the road on which the viability of the whole scheme depends. I therefore ask the Minister—although somehow I do not expect a conclusive answer today—to top up the housing infrastructure fund grant so that it covers 100% of the cost, as originally intended, and to publish the benefit-cost ratio of just funding phase 1, so that we can see what poor value limited HIF funding now represents. I also ask the Government to affirm the principle of “infrastructure first”—I hope the Minister can do so—and ask for their acknowledgment that the section 106 money is not appropriate for funding a major piece of national infrastructure. An A road is being proposed here, not a local road, which is why central Government should fund it.

I notified you, very late, Mr Stringer, that the hon. Member for Clacton (Nigel Farage) might want to add a few words.

16:13

[Nigel Farage (Clacton) (Reform)]

I am here to support my geographical neighbour, the hon. Member for Harwich and North Essex (Sir Bernard Jenkin). He is absolutely right: it would be wholly irresponsible to commence the building of thousands of houses without knowing that a road will be completed. So I completely support what he says, and I am sure that constituents in all neighbouring constituencies overwhelmingly agree.

I just wonder whether, when these things are debated, be it here or in the main Chamber, we ever pause for a moment to understand what we have done—what both Conservative and Labour Governments have done—a 10 million increase in the population in the last 20 years; the Office for National Statistics this morning suggesting that another 3 million to 4 million will be added in the next few years. These are all problems of uncontrolled mass migration and the population explosion. I wonder whether many Members level with their constituents about the causal factors here.

16:14

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rushanara Ali)]

It is a pleasure to serve under your chairmanship, Mr Stringer. I thank the hon. Member for Harwich and North Essex (Sir Bernard Jenkin) for securing this important debate and for highlighting his concerns about this project, and I thank other hon. Members for their interventions. As someone who spent many years securing debates of this form to raise important issues affecting my constituency, I know how much these debates matter to constituency MPs.

The Government recognise that there are significant benefits to high-quality, large-scale developments that deliver much-needed housing. I am grateful that the hon. Member for Harwich and North Essex acknowledges the importance of housing in communities such as his and those up and down the country. We recognise that the right infrastructure must be put in place first, including the right transport infrastructure. Without that, facilities and transport become overstretched. One of the consequences is congestion and delays for existing residents and commercial traffic.

The housing infrastructure fund was established in 2017, primarily to provide up-front infrastructure funding to support the delivery of large-scale strategic housing developments. The £4.2 billion fund will unlock 260,000 homes, 30,000 of which have already been started, with a further 73,000 completions expected during this Parliament. That will make a significant contribution to the Government’s target of 1.5 million homes, which is a major commitment of this Government—previous Governments also had commitments around house building, recognising the need for housing in our country.

The hon. Member for Harwich and North Essex spoke about the Tendring Colchester Borders garden community project in his constituency. That project is expected to initially unlock 5,000 homes at the garden community, and that figure will increase over time to a total of 7,500. The hon. Member highlighted a number of points, and I will restate some of them. This Government are providing £99.9 million from the housing infrastructure fund for Essex county council to build a rapid transit system high-speed bus route. That will run from the north to the south of Colchester, connecting to the new community. I am pleased to note that that is under construction.

I appreciate the concerns that the hon. Member shared about the second item of infrastructure being funded: the A1331 link road, which will connect the A133 and A120. Over the past few years, infrastructure projects across the country have been affected by a number of unexpected factors, such as the pandemic, rising inflation, the shortage of skilled labour and other external events, and in a constrained fiscal environment the Government have had to make tough decisions.

Due to the escalation of the costs with the Tendring project, it is no longer possible to construct the entire link road with the funding available. Additionally, there continue to be delivery challenges with sections of the road, particularly in relation to land acquisition. In response to the request from Essex county council in 2023, the previous Government made the decision to use the available grant to only fund phase 1 of the link road. I appreciate the hon. Member’s concerns about that descoping of the project. I assure him that, together with the first phase of the link road, the existing local road network is sufficient to support 5,000 homes in the garden community. Moreover, I assure him that the intention to deliver the full link remains.

To that end, there is ongoing engagement between Homes England and local partners on the support that will enable the full link road to be delivered as soon as possible. That includes capacity funding to support planning, facilitation of joint working between public and private sector partners, and cross-Government brokerage support, which I hope addresses some of the points the hon. Member raised.

Both Essex county council and the housing developer, Latimer, have committed to use reasonable endeavours to procure delivery of phase 2. Additionally, to safeguard its delivery, there is a planning policy requirement for the developer to demonstrate that funding is in place for the full link road. My Department is also providing support through our new homes accelerator programme, which will help with the pre-planning process for the garden community.

Tendring Colchester Borders garden community is an important project in an area of high demand. The housing infrastructure fund grant is a catalyst for a wider £250 million private sector investment into infrastructure. The new community will include a new country park and significant green and blue infrastructure, promoting sustainable and active travel, a new 25-hectare sports and leisure park to be used in conjunction with the University of Essex, and a new 17-hectare business park for general employment, business and industrial purposes. The Government are committed to the full delivery of the infrastructure originally planned under the housing and infrastructure fund grant.

[Sir Bernard Jenkin]

The Minister is saying one or two interesting things. First, I have never heard anybody say—I wrote down what she said—that the “local road network is sufficient to support 5,000 homes”. I do not know who has told her that, but I promise her that she has been misinformed. On the point she just made about all the other desirable infrastructure for the development, that has to come out of the section 106 money, which will now, according to the MOU, be diverted to the road. Section 106 money is not unlimited. The possible £60 million for the development—to fund that road—is a very large sum. It is £8,000 per household. Why is she convinced that this is still a viable development?

[Rushanara Ali]

The hon. Member has set out his critique. What is important is that we get it right, and that requires close working, with him and other hon. Members, and my Department, and that is why the brokerage element of what we do is really important. He makes very important points; we can continue the conversation beyond this debate, as I appreciate that there are a number of complex issues that need to be worked through. However, we are determined to support the development and ensure that it is a success.

[Sir Bernard Jenkin]

I have little doubt that the delegated authority of the three combined authorities will be minded to give planning permission come what may. However, I reckon that the decision would be subject to judicial review if the road is not guaranteed at the time of planning permission being granted. It is a policy decision to ensure that the road is guaranteed, but what else is then taken away? That itself will be challengeable under judicial review, given that it will be so far from the original plan. I am grateful to hear from the Minister that she wants the conversation to continue. Long may it continue, and I hope that we can reach a satisfactory solution.

[Rushanara Ali]

I am grateful to the hon. Member, who is an extremely diligent Member of this House, with many years of experience, and a great campaigner. He makes important points about planning matters, which obviously I cannot go into, but I look forward to working with him.

I thank the hon. Member for securing this debate. This Government are committed to making sure we deliver on housing, but it is of course extremely important that we continue to work closely with hon. Members to make sure we address the issues that come up. I very much look forward to continuing the discussion with the hon. Member and to ensuring that my Department can do what it can to support a successful way through on this project.

Question put and agreed to.

16:24

Sitting suspended.