Telford council wants to borrow £30 million in bid to bring business to town
Up to £30 million could be borrowed by council chiefs to spend on attracting more businesses to Telford, it has been revealed.
Telford & Wrekin Council wants to borrow the money to spend on land and property and to build bespoke premises for businesses.
It is hoped that it will bring in income to the council of £3 million a year, reduced to £1 million after loan repayments.
As business in the borough grows, the council expects further income from an increase in business rates.
The move – which would see the authority's Growth Fund extended from £20 million when it was established last year to £50 million – will be discussed by the council's cabinet next week.
The Growth Fund was launched to buy land and property to attract new businesses into the borough and help expand existing ones and this new loan will be an extension of that fund.
Already £14.7 million of the money has been committed, creating 1,000 new jobs and safeguarding a further 200. Income from the scheme currently makes the council £400,000 per year.
Projects during the first year of the Growth Fund have included the multi-million pound investment by Magna International, which is set to bring an aluminium casting facility to T54 to supply Jaguar Land Rover. It will create up to 295 jobs at full capacity with more anticipated in the local supply chain.
It has also allowed the council to buy Audley Avenue Industrial Park in Newport, which had been threatened with closure. The move has safeguarded more than 160 jobs at eleven businesses based there.
Councillor Lee Carter, cabinet member for council finance, partnerships & commercial services said: "The Growth Fund has had a massive impact over the last 12 months – putting the borough firmly on the map for investors – delivering new jobs and opportunities for our young people.
"Growing the fund shows the council's commitment to businesses and to strengthening our communities.
"This is also an investment for the council to protect our own services for the future, such as adult social care and children's services.
"At a time when we are having to save millions due to cuts in Government funding, we are finding new ways to make money. One of those ways is by further supporting businesses to invest in Telford and Wrekin.
"When a business is successful locally, the whole community will reap the benefits."
The issue will be discussed by cabinet members at a meeting on Thursday.
