Melton Mowbray bypass under threat from soaring inflation

Plans for a town bypass are under threat from spiralling costs and inflation, council bosses have warned.

Leicestershire County Council fears its North East Melton Mowbray Distributor Road project may end up being unaffordable.

Preparatory work on the road has already begun but the projected cost has rocketed by more than £22m in recent months.

The authority predicts costs could rise further leaving a £50m funding gap.

The county council says the road is needed to help ease daily traffic congestion in Melton Mowbray town centre and campaigners have been calling for a bypass for many years.

Councillors were told, in a meeting on Friday, the current predicted cost of building the road was £106m - up from £83.5m in April.

Senior officers said contractors were due to calculate an updated cost in October which could potentially be 15% higher still, taking it above £120m.

Soaring inflation and other rising costs have been blamed.

The government says it will contribute £49.5m towards the scheme, subject to it approving a business case.

However the council's cabinet said this would not be enough.

Housing developers are due to contribute £14m to the scheme and the Leicester and Leicestershire Enterprise Partnership has pledged £4m.

The council will need to fund the balance.

The council's cabinet member for highways and transport Ozzy O'Shea said: "The worry I have is we will not have the funding for it.

"We don't have a magic money tree so we need more from the government."

Conservative council leader Nick Rushton: "The only solution is for the government to give us more money.

"There is no way we can afford a £50m shortfall."

Council officials said the Department for Transport had already been asked for additional cash but but stated £49.5m is the sum available.

Mr Rushton told officers to ask again and stress the importance of the project to future of the town.

The council's cabinet will decide in December whether it can find a way of affording the scheme.

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