Telford finance boss reveals battle for MoD hub

Using that maths, an investment of £120 million appears to be a good one.

And Telford & Wrekin Council today insisted it is doing the right thing in looking to secure Donnington as one of the Ministry of Defence's huge logistic bases.

"We will do everything in our power to win," Telford & Wrekin's finance chief Bill McClements said today.

"We are fighting in every aspect of the bid to win," he added as he revealed cabinet members will be asked to approve a Government loan of up to £120m at a meeting on Thursday.

The cash would be used to buy the 5.6 acres of land next to the existing site and build a 875,000sq ft fulfillment centre, a 200,000sq ft warehouse and a 30,000sq ft, three-storey office building.

The huge site would be an essential part of the operation to ensure that Britain's British forces are properly kitted out with the equipment they need.

The money would only be used if the council won the bid and provided the facility.

Councillor McClements said: "We set ourselves out to be a business friendly council and we are tackling the MoD bid as a company would do to ensure we win.

"Showing that level of commitment gives us a certain edge because the bidders know we mean business and will support them.

"Winning would also encourage inward investment and add momentum to the growth of Telford's economy. The difference between winning and losing would be £60m per year every year. That kind of money is just under two per cent of the income of the whole borough."

He said the MoD Donnington bid was "big" for the borough and, along with the £250m Southwater development at Telford Town Centre, was just one of the pro-active steps the council was taking to encourage economic growth.

"In the last year Telford's economy grew by 3.7 per cent - double the national average of 1.7 per cent and three times the regional average for the West Midlands," he said.

David Sidaway, the council's director of business and development, said: "In 2011 Telford probably wasn't on the radar for this bid because the potential of Donnington was not known to the MoD.

"But we've worked tirelessly for three years to prove that Telford has something - to the point that we have secured 5.6 acres of land that we don't own but we have secured an option on that site that facilitates that investment."

Councillor McClements added: "Since 2011, we have been lobbying at various levels within the MoD for Telford to be recognised as a preferred location for a National Defence Gateway.

"This activity has raised the profile of Telford with an extension to the Donnington base being seen as a credible solution which could realise savings for the MoD and ensure continuity of military supplies to the front line.

"The benefits to the borough's economy would potentially be millions of pounds per year.

"The council is working closely with the MOD as a partner to find the best solution for their logistics operation and to reinforce the significant potential that MOD Donnington has to offer.

"A major part of the MOD assessment will be around security of funding and will require the bidders to demonstrate that they have the necessary funding in place to deliver their proposals.

"It is therefore crucial that we demonstrate that Telford and Wrekin is fully committed and that the necessary approvals and required funds are in place."

He said when Labour came to power on Telford & Wrekin Council in 2011 the party set out to deliver future employment at Donnington.

He said: "We set it as a major priority and we will do everything in our power to make Telford's bid successful."

The green light for the expansion of the Ministry of Defence at Donnington came in March when Telford & Wrekin Council's planning committee unanimously granted outline permission for the fulfilment centre, warehouse and an office headquarters on the current site.

If the Telford bid is successful, it will help protect 1,200 local jobs, including 700 at the Donnington base and could potentially result in around 400 new jobs at the site and another 300 across the supply chain.

• Star comment: MoD deal will bring big boost