Calderdale Council could borrow funds for roads needed for creation of 3,000 new homes

Cabinet members are being told delivering early sections of the roads for the proposed Thornhills and Woodhouse estates, both near Brighouse, will encourage the building of homes, including much-needed affordable housing, to start sooner.

Developing key stretches of the spine roads early should also ensure better control, including over the quality of the highways as they are constructed, says the officers’ report they will consider when they meet on Monday (February 10).

Earlier home building by developers in turn will generate earlier roof tariff payments – sums of money developers must pay the council per new home – which will then help reduce risks associated with borrowing the council needs to fund the infrastructure in the long term, councillors are told.

A year ago, the full Calderdale Council endorsed a recommendation from cabinet to incorporate £52.4m into the council’s overall capital programme for critical infrastructure to deliver the garden communities scheme.

However, the latest forecast is that around £40m may be needed over the anticipated 24-year life of the scheme – a £12m reduction largely brought about by a preferred strategy of not building new primary schools in the new communities and building the spine roads early.

In the council’s case it is anticipated more of the costs will come early in the first six years of development.

In years one to six and the construction phases of the overall scheme, a net cost of £24.4m – which will have to be funded by borrowing - is anticipated, while in the remaining years – seven to 24 – income from roof tariffs would meet the cost of borrowing on an annual basis, the councillors are told.

Some of the cost can be defrayed by a £4.5m Government grant awarded for link road work related to plans for an associated Clifton business park.

Based on anticipated net borrowing requirement of £40m, but factoring in anticipated income from roof tariffs, it is estimated that the revenue cost in the first six years will be £7.4m.

The councillors are also asked to approve the principle of compulsory purchase powers to acquire necessary parcels of land, if they are needed.