Ellie Ames 15 December 2023

Council warns of S114 risk over HS2 costs

Council warns of S114 risk over HS2 costs image
Image: tornadoflight / Shutterstock.com

Cheshire East Council has warned that it may have to issue a section 114 notice after spending £11m preparing for HS2, as it continues to press for compensation.

The local authority described the cancellation of the HS2 scheme north of Birmingham as a ‘devastating blow’ for the region.

A council report notes that under local government accountancy regulations, the authority will be required to write off the £11m it spent preparing for HS2 and the Crewe Hub, including expensing £8.6m of capital costs through its revenue account.

It warns that this requirement could leave the council with insufficient funds and reserves to manage its in-year expenditure, which could ‘trigger a s114 notice’.

According to the council, the HS2 leg, which would have seen 5-7 trains an hour call at Crewe station, was set to create 4,400 new homes and 5,000 new jobs for Crewe, and provide a £750m annual boost to the local economy.

The authority noted that while some parts of the Government’s ‘Network North’ plan, announced on the back of the HS2 cancellation, could benefit the region, the plan ‘includes no specific mention of investment in Cheshire East or Crewe’.

But because the Government has since described the plan as ‘illustrative’, the council said it understands ‘that there is an opportunity to seek to negotiate a fair and equitable deal for Cheshire East’.

The council has already written to ministers to call for compensation.

SIGN UP
For your free daily news bulletin
Highways jobs

Residential Assistant

Essex County Council
£25081.00 - £25395.00 per annum
Residential AssistantPermanent, Full Time£25,081 up to £25,395 per annumLocation
Recuriter: Essex County Council

Senior Planning Officer

Durham County Council
Grade 11 £39,513 to £43,693 Grade 12 £42,708 to £46,731 per annum (Pay Award Pending)
Durham County Council is looking for experienced and knowledgeable Senior Planning Officers to join our vibrant Development Management team. Our team Durham
Recuriter: Durham County Council

Head of Service – Social Care

Wrexham County Borough Council
G15 £63,148 - £67,058 per annum
There is an exciting opportunity within Children Social Care to join the senior management team Wrexham (Wrecsam)
Recuriter: Wrexham County Borough Council

Head of Service Social Work & Specialist Support

Blackburn with Darwen Borough Council
Grade M scp 60 £72,118 - scp 64 £77,293
There couldn’t be a more exciting time to join us. Blackburn, Lancashire
Recuriter: Blackburn with Darwen Borough Council

Cafe Assistant - Weald Country Park

Essex County Council
Up to £13.3000 per hour
Café Assistant (Weald Country Park)Contract
Recuriter: Essex County Council
Linkedin Banner