THE prospects of building a western bypass in Hereford were dealt a huge blow this week as the funding agreement for its first phase was terminated.

The Marches Local Enterprise Partnership has decided to cancel the £27m agreement with Herefordshire Council for the South Wye Transport Package (SWTP) — and wants to claw back the £3.8m already paid to deliver the project.

The proposed southern link road, which is the first stage of the planned western bypass, is part of the SWTP.

The link road road has planning permission and would connect the A49 Ross road with the A465 Abergavenny road.

And the idea for the bypass is to continue from the A465 across the river Wye and linking with the A49 north of the city.

But LEP chair Mandy Thorn said the council’s pause and review of the SWTP means the £27m could not be specifically earmarked by March 31, 2021, which is one of the terms of the agreement.

“In order that this funding is not lost entirely to the Marches region, the LEP board will consider a number of other independently assessed programmes which could utilise the funding allocation within the Government set deadlines in due course,” she said.

“The Marches LEP has been invited and accepted a place on the council’s transport review panel and has made clear that the decision to re-allocate funding at this stage does not preclude or prejudice any future funding bid for transport infrastructure projects in Herefordshire.

“We look forward to continuing to work closely with our Herefordshire partners in the coming weeks and months as it completes its review.”

However, council transport and infrastructure cabinet member John Harrington said his administration inherited a scheme which had increased costs, did not have a completed business case, and had issues related to tendering and planning permissions.

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“As such, we were not in a position to make a decision to immediately progress the scheme even if we had wanted to,” he said.

“We are disappointed, but we understand the reasons why the Marches LEP made this decision.

“When we arrived as an administration in May 2019, it became evident that this scheme needed to be rigorously examined, as after five years of work there was no complete business case, costs had increased significantly and there were issues related to tendering and planning permissions.

“We had recognised that holding a review into the proposed road schemes would risk losing this funding opportunity, however it is imperative that the council’s decision-making is fully informed by the latest information, policies and best practice.

"Decisions we take regarding infrastructure now will have a permanent impact upon the environment which last for generations to come, so we must make the right decisions.

“Any major road scheme should address the issues it sets out to, so we must take the time to ensure the most effective use of public funds to tackle current travel issues, such as congestion, air quality and the climate emergency.

“We look forward to involving the Marches LEP in the Hereford transport strategy review and have submitted a number of proposals for consideration on the reallocation of the funds.”

Conservative group deputy leader Nigel Shaw said he was saddened by the loss of investment which had been hard won by the previous Tory administration.

“I am further frustrated that £3.8m already received by Herefordshire looks likely to be reclaimed by the Marches LEP,” he said.

“That sum nearly represents the increase being billed to council taxpayers this year.

“They should be asking serious questions about the viability of this alliance administration which looks set to squander the strong financial position of the council built up by the Herefordshire Conservatives.

“This loss will affect not just Hereford city but the economy of the whole of Herefordshire”