Shock cut in funds is set to hit key projects

BY SIMON HUTCHINSON

Completion of the western bypass and redevelopment of Bedford's bus station could be hit after the government snatched back £3.4 million in promised funding.

Months after pledging capital funding of £7.8 million in 2010/11 to meet the needs of the growing population of Bedford and the Marston Vale, the promised allocation has been slashed by 43 percent.

The sudden cut in funding deals a severe blow to the prospects of vital projects within Bedford Borough such as those two key developments.

The requirement for Bedford Borough to take an extra 16,000 homes by 2021 remains, however.

The cut has been made to help fund a new pledge by Prime Minister Gordon Brown to spend more on housing.

Liberal Democrat group leader Cllr Dave Hodgson said: "The Government has carried out a smash and grab raid on funding for crucial infrastructure in Bedford borough in order to pay for Brown's electioneering.

"The Government expects this borough to take an extra 16,000 homes over the next 12 years, but has pulled the rug from under key projects that are much-needed for our current population, let alone a fast growing one.

"Local residents have already been waiting for far too long for essential improvements such as a full western bypass for Bedford and redevelopment of the bus station area of the town centre.

"At best, this savage spending cut could see these schemes delayed by several more years.

"I have written to The Secretary of State for Communities and Local Government, John Denham, demanding that the Government reconsiders this irresponsible, unilateral spending cut."

Housing Minister John Healey, said: "Because of the recession, the pace of growth has slowed so it makes good sense to transfer money originally intended for infrastructure investment so we can build an extra 20,000 affordable homes and 10,000 private sector homes in the next two years.

"Local authorities need to seize the opportunity to get a slice of the £350m we've made available to build new council homes for the first time in a generation."

A Bedford borough council spokesman said: "The original provisional allocation included the sum of £6,085,729 for Bedford Borough Council priority projects in 2010/2011 - essentially as contributions to the A6/A428 infrastructure and Bedford Town Centre West scheme of development.

"This reduction will inevitably, therefore, have an impact on these priority projects from this source of funding."