The future of two business park schemes in County Durham has been questioned after funding was withdrawn, writes Local Democracy Reporter, Bill Edgar.
Cash previously allocated for the economic regeneration schemes at South Church Enterprise Park in Bishop Auckland and Jade Business Park in Murton has been pulled from Durham County Council’s capital programme.
The decision was made by the new Reform UK administration in charge of the local authority, which is reviewing council spending across services.
Durham County Council said the schemes haven’t been “completely banished” and will continue to be assessed for alternative investment and funding opportunities, minimising the need for council borrowing.
“This scheme isn’t being completely banished; it is still open to consideration,” said Rob Davisworth, the council’s head of corporate finance and commercial services.
But opposition councillors criticised the decision, saying the removal of funding risks the future of the sites.
A proposal to build up to 28 new industrial units at South Church Enterprise Park was approved by the former administration in charge of the council in March 2024.
The new units were aimed at new and small businesses in response to the rising demand in the region.
The Bishop Auckland scheme was funded by £5.7 million of self-financing borrowing, £900,000 of corporate borrowing and a £2 million grant allocation, which will remain in the capital programme to fund initial enabling works.
Liberal Democrat councillor Mark Wilkes said: “I am interested to know the likely additional costs for all of these schemes because of the delays, although I am not convinced they will ever happen at all now that the funding has been removed.”
Mr Davisworth said grant funding assigned to the schemes could be repurposed for alternative schemes.
“The intention is that we will look to use some of that to fund the ground and enabling works for that site, so it is open to a future investment opportunity, although we are looking at other external investors who may be interested in developing that site,” he said.
Bishop Auckland's local community newspaper.
