Funding gap for new M5 junction project hits £110m

Currently drivers can only access the M5 northbound from junction 10

A major project to build a new motorway junction now has a funding gap of £110m, a council report says.

A Gloucestershire County Council report said costs to build a new junction 10 on the M5 have soared by £70m to £363m since 2023, driven partly by inflation and extended deadlines.

Councillors will vote on a new plan to plug the financial blackhole on 17 September.

"The combination of increased costs and the requirement to underwrite the construction cashflow means that the overall funding gap has increased to an estimated £110m," the report said.

Transport Secretary Heidi Alexander gave approval for the project in June, with work due to start in early 2026.

Currently drivers can only access the M5 northbound from the junction.

Once the project is finished, they will be able to join and leave the motorway both northbound and southbound.

The council's cabinet will be asked to approve the £110m package to plug the gap, which includes £20m from land it owns or rents, £20m from money from developers in the Community Infrastructure Levy, and £70m from Homes England if it agrees.

The council report said the scheme will "enable transformational growth across the region".

"The scheme will unlock significant housing and employment opportunities, including up to 15,000 homes, 12,000 high-skilled jobs, and support for the £1bn Golden Valley development and National Cyber Innovation Centre."

The council hopes to finish the new junction project in 2028.