Funding continued from home page ....

ESG Herefordshire has been in touch with businesses located in the link road development area to say that funding for phase two and three of the link road is currently uncertain, following the news that the Homes and Communities Agency is facing a spending freeze of £1 billion this year. Over 100 local authorities have been affected by the news.

We recognise that the businesses sited in the area of the new link road particularly need and deserve clarity and we deeply regret that providing that clarity is not in our control at the moment. We made sure they were made aware of the situation as soon as we knew, and we are working with businesses to help them continue to find new premises around the city in line with their long term business plans.

Indications are that funding from regional development agency AWM for the first phase of the new road, from Edgar Street to Widemarsh, could still be in place. Regeneration in Hereford is near the top of AWM’s priorities.

ESG is considering other innovative funding arrangements for the rest of the road. Work on phase one is still scheduled to begin in 2011.

While the position of public sector funding is uncertain at the moment, and right across the UK not just in Hereford, more than 90 per cent of the investment for the city’s regeneration will come from the private sector. The major household name retailers and leisure companies we expect to attract to Hereford are close to signing heads of agreement. 

To read Herefordshire Council's press release,click here