MoD Donnington bid set for cabinet approval
Councillors in Telford & Wrekin are seeking to borrow up to £120m in order to fund the commercial investment that could be needed to make the National Defence Gateway a reality.
If the council is successful in convincing the government to choose Telford’s MoD Donnington as the location for its logistics hub, it will safeguard up to 1,200 local jobs including 700 at the base itself.
It would also potentially result in around 400 new jobs at the base plus over 300 new jobs in the supply chain.
Winning the bid would also generate substantial amounts of money for the borough’s economy.
A report to next Thursday’s cabinet meeting is seeking approval to borrow up to £120m in order to fund the commercial investment. The money would only be needed if the bid is successful and the council provides the facility.
The cabinet report is the latest stage in ensuring all the relevant pieces are in place to enable Telford to be chosen as the preferred location for the National Defence Gateway.
It follows on from a decision in March by the council’s Planning Committee to grant approval for warehousing development in and around the existing MoD Donnington site.
The 10 July cabinet is being asked to approve the borrowing. If the go ahead is given, it will be subject to approval by full council.
Telford & Wrekin Councillor Bill McClements, cabinet member for Finance and Enterprise, said:
“Since 2011, we have been lobbying at various levels within the MoD for Telford to be recognised as a preferred location for a National Defence Gateway.
“This activity has raised the profile of Telford with an extension to the Donnington base being seen as a credible solution which could realise savings for the MoD and ensure continuity of military supplies to the front line.
“The benefits to the Borough’s economy would potentially be millions of pounds per year.
“The council is working closely with the MOD as a partner to find the best solution for their logistics operation and to reinforce the significant potential that MOD Donnington has to offer.
“A major part of the MOD assessment will be around security of funding and will require the bidders to demonstrate that they have the necessary funding in place to deliver their proposals.
“It is therefore crucial that we demonstrate that Telford and Wrekin is fully committed and that the necessary approvals and required funds are in place.”
