Plans for a southern distributor road and over 4,000 new homes near Chippenham have been thrown into doubt because they pose financial risk to Wiltshire Council.

The Future Chippenham project initially aimed to build 7,500 new homes around the town and distributor roads to both the east and the south.

Plans for the eastern distributor road were shelved while the number of planned houses was almost halved to 4,050 after fierce criticism from locals.

The southern route was intended to be built from the A4 through to the A350 junction at Lackham roundabout.

Now Wiltshire Council is considering a cabinet motion to withdraw from the Housing Infrastructure Fund (HIF), which was financing the project, after failing to renegotiate new funding for the updated plans.

The council says that continuing with the project based on the current grant agreement would expose them to significant financial risk.

Cllr Richard Clewer, Leader of Wiltshire Council, said: “As a result of ongoing discussions with Homes England, a mutually agreed exit from the grant determination agreement that reflects the Cabinet decision of July 2022 has been agreed with them.

“Cabinet will decide next week whether to withdraw from the HIF programme. 

“One of our key aims is to deliver vibrant, well connected communities so cabinet will carefully consider all the options available for the future of its land to the south of Chippenham and possible next steps for the Future Chippenham programme.”

Cabinet will consider the recommendation to leave the HIF on Tuesday, December 13. Cabinet recommends that, should they agree to withdraw, the full council should vote for the unfinanced costs of the Future Chippenham programme to be funded through future capital receipts.

They also suggest a budget allocation of £500,000 in 2023/24 to support work promoting council sites in the Local Plan Review.

The council will also consider its options for the land it owns to the south of Chippenham at the meeting now that the lack of funding for a distributor road has cast doubt on the project.

The four options the council must choose between are to do nothing with the land, to explore alternative uses such as commercial schemes, to sell some or all of the land or to work with other landowners to develop the area through the Local Plan Review.

Cabinet has recommended this final option to the council but has warned the land may need to be sold if this does not prove viable.