A bypass scheme for Toft Hill and High Etherley formed part of a successful bid for 拢20m from the government's Levelling Up Fund (LUF) in 2021, alongside the restoration of Whorlton Bridge, near Barnard Castle.
When the bypass scheme was originally approved in 2021, the total costs were estimated at just under 拢12m, excluding potential additional costs such as land compensation, mining remediation work or ground treatment.
However, the impact of inflation on construction costs, alongside other financial pressures, means that the total cost of the project is now estimated at between 拢31.6m to 拢36.4m.
Next week councillors will meet to decide whether to withdraw the scheme from the LUF programme, retaining the funding of around 拢8.9m for future use; or commit to covering the funding shortfall of at least 拢18.8m, including additional survey fees.
Cllr Tim McGuinness, cabinet member for rural, farming and transport, said: "We have undertaken a significant amount of work to establish the best way forward for the bypass scheme, which has been part of the council's capital programme since 2021, well before this cabinet took office. During that time, factors outside of our control have led to escalating construction costs. We have also identified that all potential routes for the bypass would require significant remedial works due to the area's historic coal mines.
"It is clear, therefore, that the project no longer offers value for money, so it is right that we give consideration to whether or not it should go ahead at this time.
He added: "While we have to consider the potential not to progress with the scheme, we do understand the concerns of residents in Toft Hill about road safety in the village. Regardless of our decision regarding the bypass, we will set money aside to improve road safety, working in consultation with residents to ensure any work directly addresses their concerns.
"We appreciate that the project has been on hold now for a number of years, but it is necessary that we, as a cabinet, do our due diligence on any spend and ensure value for money, especially when the costs of a project have escalated significantly or so much time has passed."
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