Council funding pulled from business park schemes

Jade Business Park was set to receive about £2.6m

The future of two business park schemes has been called into question after a council withdrew promised finding.

Cash previously allocated for projects at Jade Business Park in Murton and South Church Enterprise Park in Bishop Auckland has been pulled from Durham County Council's capital programme.

The Reform-led authority said the schemes have not been "completely banished" and would continue to be assessed for alternative investment and funding opportunities.

Opposition councillors criticised the decision, saying the removal of funding risks the future of the sites.

Liberal Democrat councillor Mark Wilkes told a scrutiny committee that the Murton site was in "a key area" which "desperately" needed jobs.

About £2.6m, funded by corporate borrowing, was outlined for enabling works to build additional industrial space at the Jade Business Park.

"What the removal of this funding does is put at risk the development and economy in the east of our county, at exactly the point when we should be pushing for these green jobs because they are the jobs for the future," Wilkes said.

"It seems mad to remove it."

'Open to consideration'

Council officers will seek alternative funding models from other sources, the Local Democracy Reporting Service said.

"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.

A proposal to build up to 28 new industrial units at South Church Enterprise Park was approved by the former administration in March 2024.

The units are aimed at new and small businesses in response to rising demand in the region.

The Bishop Auckland scheme is funded by £5.7m of self-financing borrowing, £900,000 of corporate borrowing and a £2m grant allocation, which will remain in the capital programme to fund initial enabling works.

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," he said.

"We are looking at other external investors who may be interested in developing that site."