Agenda item

To receive an update on the Telford Land Deal.

The Deputy Leader and Cabinet Member: Highways, Housing & Enforcement presented the report of the Director: Prosperity & Investment. The report set out the continued achievements of the Telford Land Deal during the last financial year and since its commencement in 2015 which with support from the Council’s Growth Fund and the Invest Telford Business Pledge which had delivered new higher skilled local jobs, created growth and security in the local supply chain and new homes across the Borough.

Since the Council entered into a unique 10-year Land Deal with Homes England, the Deal had cumulatively delivered the sale of a total of 34 commercial sites and 25 sites for residential development, achieving a gross sales income of £60.3m to date. These sites have enabled the delivery of 1,583 new homes and supported commercial premises in delivering 2,473 new jobs, with many in engineering and manufacturing adding skilled job opportunities for the Borough.

The financial successes of the Land Deal have meant that a cumulative profit of £19.1m has been achieved by the Land Deal partners up to 31 March 2024. In the last year alone, the Deal had delivered £11.7m in growth sales income, delivered 381,117sqft of commercial floor space and provided 48 new homes. The Council had in 2023/24, completed the reinvestment of £3.3m of its profit share alongside its Growth Fund to support the delivery of 24 industrial units at Hortonwood following the creation of Orchard Business Park.

The report highlighted that the Telford Land Deal Board had recently endorsed the decision of the Council to spend profit share monies to support the viability of projects being delivered through the Towns Investment Fund. This included approval to invest £3m of its profit share into projects in Oakengates and the Telford Town Centre. The funding had seen the delivery of new homes, refurbished retail units and quality public realm spaces. Investment had also supported the delivery of enhanced access routes and the new 43,055sqft Digital Skills and Enterprise Hub, located in the Quad in Station Quarter, accommodating a coordinated offer for both education and a flexible new space for businesses.

Ni Park had recently reached completion of its second phase with a further 3 units totalling 30,000sqft and is now a recognised hub for small businesses. The first phase of delivery had seen 24 small business units completed in October 2021, supported through funding from the Growth Fund and Land Deal profit share. All units proved popular with small agri-tech businesses, with further opportunities to partner with Harper Adams University. Another of the Council’s prime business parks, Hortonwood West had been highly successful in providing much needed employment land delivering 339 new jobs and 375,143sqft of employment floor space.

As the Land Deal draws nearer to the end of its 10 year agreement, negotiations had taken place to secure an extension, enabling the Council to continue to bring forward the small number of sites that remain and to continue to deliver new homes, create skilled jobs and foster sustainable growth.

Cabinet Members welcomed the report and thanked Officers and Partners involved. Members noted the positive impact the Land Deal continued to have in driving investment and regeneration for the Borough and the importance of delivering new homes and jobs for its residents. Members also highlighted the significant impact of the £4m income from business rates and council tax on delivering key frontline services and securing capital investment through land sales and private sector contributions. Members welcomed plans to negotiate an extension of the current agreement.

The Leader of the Conservative Group thanked Officers for the detailed and extensive report in acknowledging the achievements of the Land Deal in land remediation and growth. He expressed a desire for jobs to remain within the Borough to reduce the need for long commutes for residents and welcomed next steps for the extension of the current agreement.

The Leader of the Council acknowledged the success of the Land Deal to date and highlighted the importance of continuing to provide good quality jobs and homes for residents. The Leader emphasised that the Borough remained open for business and the Council continued to be committed to securing new investment opportunities.

RESOLVED – that:

a)    the outcomes achieved during the 2023/2024 financial year and overall, since the Land Deal commenced in 2015 be noted;

b)   delegated authority be granted to the Director: Prosperity & Investment to negotiate the terms of any extension to the Land Deal as set out in section 4.21 in consultation with the Deputy Leader & Cabinet Member: Highways, Housing & Enforcement; and

c)    delegated authority be granted to the Director: Policy & Governance to take all the necessary steps to give effect to the proposals set out in this report.