Labour accused of 'mortgaging the town' to pay for road repairs

Cabinet members met last night to decided whether to borrow £10 million over 40 years to boost the highways budget.

Conservative leader, councillor James Daly, points out this figure is not enough and said a “massive” boost is needed to repair the road network.

The suggested figure by the cabinet to bring the network back to new is £75 million.

Cllr Daly was told by senior council officers the £10 million loan would be repaid over 40 years, with initial drawdown costs of £611,000 over three years, paid from the council reserves.

After, the annual payments for the next 37 years would be £427,000.

The total cost of the loan would be in the region of £17 million.

Cllr Daly, said: “The road network needs massive investment.

“I do feel it’s a bit rich for the Labour group to do this, they have had the opportunity to invest millions to improve the network.

“In meeting after meeting it’s been proposed and they have done nothing, they have allowed it to deteriorate.

“It’s criminal they have allowed this deterioration to develop.

“They are mortgaging this town for 37 years for £427,000 per year.”

The deterioration of the road network is calculated to be at a rate of £5 million per year, with only £1.2 million per year being spent.

Cllr Daly pointed out this is the same as the average annual pay out on insurance claims against the council related to the road network in the last three years.

The costs for the loan after the first three years are projected to be paid through reduced road patching costs and fewer insurance claims.

Labour hit back over the claims. Cllr Sandra Walmsley, cabinet member for strategic housing and support services, said: “Bury’s roads, like those across the country, need major investment. This is why we are proposing to spend an extra £10 million on them, which is good news for residents of this borough.

“We are determined to invest in our road network, despite having to make cuts of £60 million in the last six years and a further £32 million of cuts to come by 2020.

“Of course, we would love to spend far more on the roads. But when your budget is cut by such huge sums, while having to meet increased costs and demands for social care, we simply cannot afford it. We will always put the needs of our vulnerable people above all else.

“We have already been using innovative methods and new equipment to improve our roads, and we will continue to invest in the network.

“As regards borrowing, we aim to fund these costs by reducing the amount paid out in insurance claims, and by saving money on carrying out costly patching repairs. Any borrowing comes at a cost; however, it makes sense to borrow while rates are at an all-time low, and investment on this scale is necessary to prevent further deterioration of the road network. We have not yet lost out on any money from the Department of Transport’s Incentive Fund.

“We could, though, lose out in future if we do not have an effective highways asset management plan. This is exactly what we’re doing, and everyone should welcome it.”