Almost £800,000 borrowing agreed to fund Telford gipsy site

The project to build 12 units at Lodge Road in Donnington Wood is running £775,000 over budget.

Last night a full meeting of Telford & Wrekin Borough Council agreed to borrow the money to complete the work.

The cash will be repaid from the eventual sale of land at a transit site in Snedshill, which is due to take place in five years.

The council had originally been awarded £1.75 million from the Government's Homes and Communities Agency (HCA) to pay for the work – and it had been anticipated that that would be enough to cover the whole scheme. But the overspend has been blamed on poor quality ground conditions and the need to build the units to a "higher than anticipated specification" under the agreement with the HCA.

At the meeting in the Haybridge Restaurant at Telford College of Arts and Technology, Councillor Charles Smith said the council had a "statutory" duty to support the gipsy and traveller community.

Councillors have been told that if the work is not completed, the authority could find itself spending £20,000 every year dealing with illegal encampments.

"It will alleviate the number illegal sites that this borough has suffered over the years," he said. "Since this site (was built) the illegal sites haven't disappeared completely but they have reduced significantly."

Councillor Veronica Fletcher urged cabinet members to "apologise" to businesses and residents near the Snedshill site "for the impact they have suffered".

"Now land there will be sold off for employment purposes to pay off short term borrowing," she said.

Councillor Smith said it was necessary that police had a place to move those camping illegally. In a report to councillors, Kate Callis, the authority's assistant director for development, business and employment, said the extension to the site was "considered essential" to ensure that the council is able to fulfil its statutory duty.