Decision details

Gary Rowland from Atkins presented a report (circulated) on the independent assessment of the business case for the proposed A6 Broughton Bypass and recommended that the scheme be granted Full Approval.

The Committee noted that the scheme is predicted to provide very high Value for Money (VfM) with a benefit to cost ratio (BCR) of 5.8.

A low growth sensitivity test has been carried out resulting in a BCR of 3.9, which can still be categorised as providing a high VfM.  It was noted that the Lancashire Enterprise Partnership Assurance Framework seeks to endorse projects that have a Value for Money ratio of at least 2.

It was also reported to the Committee that it is anticipated that the scheme has the potential to generate an additional £153m of Gross Value Added (GVA) benefits arising from the unlocking of residential development (650 dwellings) and the creation of employment opportunities (750 jobs).

Regarding the financial cost of the scheme, it was reported that the total cost of the scheme will be £24.3m, of which £8.8m will come from Confirmed Local Growth Fund, £6.7m will come from Competitive Local Growth Fund and £8.8m from Lancashire County Council / Third Party contributions.  It was noted with regard the Third Party contributions that the Homes and Communities Agency (HCA) had paid £5.1m to date.

Resolved:  The non-conflicted Committee Members endorsed the A6 Broughton Bypass – Full Approval Application and recommended that it be submitted to LEP Board for formal approval at its meeting to be held on 6^th October 2015.