A133-A120 Link Road

Marie Goldman Excerpts

Tuesday 28th January 2025 Westminster Hall

[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.