Falkirk Council: Concerns over funding for Grangemouth flood prevention and Avon Gorge improvements

There is still no certainty about how the council will be able to fund Grangemouth’s Flood Prevention Scheme at an estimated cost of at least £450 million, or make long-awaited improvements to the notorious Avon Gorge.

Both projects are earmarked to received Tax Incremental Finance (TIF) funding, which means the cost of new infrastructure is met by borrowing against future business rates.

The Scottish Government has now approved increasing the TIF’s budget cap to £95.7m but nevertheless the expected cost of the two projects is expected to be far beyond the funding available.

Members of Falkirk Council’s executive this week agreed that officers should bring a report to the August meeting of the committee, asking for an update on progress on the Grangemouth Flood Prevention Scheme.

The SNP administration called for the report, recognising the scheme’s importance and noting that “under the current funding model, Falkirk Council’s contribution would be unaffordable as a result funding would not be sufficient to deliver the project”.

The SNP group said that the report “should also outline a campaign strategy to lobby both Scottish and UK governments on an alternative funding model”.

The massive project is by far the biggest and most complex flood protection scheme in Scotland, involving risk of flooding from three local rivers as well as the Forth estuary in an area that includes a major port and an oil refinery.

Falkirk Council will be required to pay 20 per cent of the cost but as construction prices have continued to rise, even one-fifth of the cost is now unaffordable.

The steep rise in construction costs led to a review of all of the council’s major infrastructure projects and, at the same meeting, councillors agreed that a proposed new crossing over the roads meeting at Westfield roundabout was unaffordable, despite having £20 million of UK government’s Levelling Up funds.

However, they did agreed to proceed with transforming the roads between Earls Gate roundabout and Falkirk College into dual carriageway. This will be paid for by the TIF funding, which officers are confident will be recouped as additional business rates come into the area.

TIF money is also being used for improvement works at Junctions 5 and 6 of the M9, which is currently underway.

While opposition councillors supported the SNP’s request for a report into the flood defence funding, they were concerned that Avon Gorge funding was not included in the request.

However, they were told that a joint bid for the UK Government’s Levelling Up Fund is still proceeding with West Lothian Council and discussion have been ongoing with Transport Scotland.

Councillors were warned, however, that there is no guarantee that a third round of Levelling Up funds will be released and if it is, it is likely to be at a much lower level than previous rounds.

Conservative leader Councillor James Kerr noted that flood protection is a devolved matter so he questioned whether the UK government will provide the cash but supported the addendum nevertheless. He added that anyone who finally managed to deliver the Avon Gorge for the district “would get a knighthood”.