Motoring ahead with £18m bypass plans off A19

The authority hopes to secure full funding from outside sources to pay for the major road scheme that will be linked to the building of over 2,000 new homes in Hartlepool.

A £10m bid has been made to the National Productivity Investment Fund. Another application for £8m has been submitted to the Housing Infrastructure Programme, a £2.3 billion government pot to support local councils to provide up to 100,000 new homes.

An announcement on the council’s £10m bid is expected in Chancellor Philip Hammond’s autumn budget before the end of the year.

The council has agreed arrangements to borrow between £8m and £10m depending on the outcome of the bids.

Hartlepool council leader Councillor Christopher Akers-Belcher said the bypass is “a key part” of the authority’s plan to grow Hartlepool.

He said: “Bids to secure external funding have been submitted and details of the outcomes of these will be reported when they are known.

“Given the importance of these improvements it is necessary to have a fallback funding option in place in the unlikely event our funding bids are not successful.

“This option is based upon the council agreeing to prudentially borrow to cover the full cost of the scheme up front or a lower amount if other sources of funding can be secured.”

Ultimately, the cost of the bypass is due to be met by contributions from developers of the South West Extension and High Tunstall of just over 1,200 homes each, and 220 homes at Quarry Farm.

Coun Akers-Belcher said in the event that no developer monies were received, the council would face £750,000 in interest costs, which would come out of £2.3m in council tax generated by the new homes.

He said such a position was “highly unlikely” adding: “Nevertheless it is prudent upon this council to assess the financial impact of this scenario”.

Hartlepool full council agreed the borrowing arrangements.