8,500 jobs and 2,800 new homes in Telford government land sales deal

Telford & Wrekin Council looks set to seal a deal with Homes and Communities Agency (HCA) that will result in around 2,800 homes and up to 8,500 jobs being created.

Selling the land, made up of residential and industrial sectors, will see up to £44.5 million of receipts generated, which will be invested in Telford, the council said.

The Telford Land Deal is thought to be the first deal of its kind nationally and presents a one off opportunity for the council to influence the disposal of public sector land within the borough.

It would see the borough directly benefit for the first time from receipts generated by the sale of HCA land.

The homes that will be delivered by the deal form part of the 15,500 new homes already planned for the borough through the Telford and Wrekin Local Plan.

Under the deal, the council is aiming to increase the value of sites and speed up their delivery by reinvesting a proportion of receipts from the sale of HCA land.

Councillor Shaun Davies, cabinet member for business said: "The deal directly supports our drive to support existing business and attract new inward investment and will create thousands of jobs to give a real lift to Telford's economy.

"It also strengthens our ability to negotiate benefits through our non-constituent membership of the West Midlands Combined Authority because it means we can deliver investment into the region that some of our neighbouring authorities cannot accommodate.

"The Land Deal will also deliver new job opportunities and homes for existing residents as well as investment to support services and facilities borough wide."

About 191 acres of land will be put up for sale around the town, and will present opportunities for house builders and businesses to continue with their investment in Telford's future.

If sales go well , the council will receive a projected further £19 million share in the increase in land values over the 10-year programme.

The deal could also result in a further £6 million income for the council from the extra council tax and business rates generated by the new homes and employment space.

A proportion of the receipts will also be invested by the Marches Local Enterprise Partnership to provide gap funding for stalled development sites across the Marches.

Councillor Richard Overton, deputy leader and cabinet member for housing, said: "This will enable us to maximise opportunities to deliver regeneration, ensure investment is made into infrastructure and respond to market opportunities working proactively with investors, local businesses wishing to expand and housing developers.

"The deal is not without its risks but we have been able to build a number of safeguards into it.

"Ultimately it has the potential to realise significant financial rewards for the council."

Karl Tupling, the Homes and Communities Agency's executive director for the Midlands, said: "The HCA has a strong record of working in partnership with the council.

"This will continue through this deal to support Telford in delivering its local priorities, create jobs and bring forward the development of new homes for local people."

A report outlining the details of the deal will go to a full meeting of Telford & Wrekin Council tomorrow.

The meeting is being asked to approve the council entering into the Land Deal and delegating responsibility for doing so to relevant directors and cabinet members.