South Norfolk Council Hethel roundabout bid could be blocked

South Norfolk Council wants to use £917,000 from the government's Rural England Prosperity Fund to upgrade a junction on the B1135 at Hethel.

It says the scheme will open up access to the planned Hethel Technological Park, allowing new rural businesses to set up in the area and create jobs.

The new roundabout would be built off Wymondham Road in Hethel, west of the existing access to Hethel Engineering Centre (Image: Google Maps)

But farmers say the council's plans to use the money for the project, next to Hethel Engineering Centre, is not in the spirit of what the fund was created for.

Richard Rampton, from Swainsthorpe-based Rural Advice Ltd, which offers business support for local farmers, said: "What South Norfolk are doing is monstrous.

"They have swallowed up this money for themselves, to use on a roundabout."

Civil servants at the Department for Environment Food and Rural Affairs (Defra) have also raised eyebrows over South Norfolk's plans and could yet block the scheme.

Discussions between Defra and the Conservative-controlled council have been taking place over the project.

READ MORE: Norwich, Hethel and Easton schemes set for cash boost

The government has said the money must be spent on one of two areas.

They must either be projects to improve community facilities such as green spaces and boost access to arts and culture to grow local tourism economies.

Or they must support rural businesses looking to expand.

John Fuller, leader of South Norfolk Council (Image: Archant)

John Fuller, leader of South Norfolk Council, said the Hethel roundabout would help open up the expansion of Lotus and the Hethel Engineering Centre.

He said: "We are in discussions with Defra, but we are hoping to build on the national success that is the Hethel Engineering Centre.

"With a combination of private sector money, the county council and our own resources, we could use the Defra money to put us in the best possible place of moving our local economy into a post-carbon world."

Mr Fuller said more than a hundred businesses had been set up because of the Hethel Engineering Centre and improving access there would mean more rural businesses could be created.

However, other councils - including West Norfolk, which has secured almost £1.5m from the fund - are using the Rural England Prosperity Fund money to set up grant schemes which local businesses, including farmers, can apply for.

That money will be available for capital investment, so new and existing rural businesses can develop new products or facilities to boost the local economy.

READ MORE: New equipment could boost Norfolk's food and drink industry

Richard Rampton (Image: Anglia Rural Consultants)

Mr Rampton, whose firm helps farmers develop successful business plans and grant applications, said South Norfolk should be using the government cash to develop a similar scheme.

He said: "By retaining the whole allocation for the construction of a roundabout, South Norfolk is, arguably, denying their own small businesses and farms the opportunity to bid for half a million pounds of support to develop and diversify their operations.

"All the other councils that I know of are using the money they received to set up grant schemes which businesses can bid for.

"We have seen local areas that have started small grant schemes for up to £25,000 and large grant schemes where businesses can bid for up to £150,000.

"Farmers are already facing a major reduction because of the end of the basic payment scheme."

That was a scheme which saw farmers receive money through the European Union's subsidies system - but that is being phased out following Brexit.

THE 'RURAL ROUNDABOUT': WHAT IS THE CONTROVERSIAL SCHEME?

The council wants to put the money towards an £8.2m scheme to improve access to the planned Hethel Technology Park.

It includes a new, three-arm roundabout on the B1135 Wymondham Road, to the west of the current Hethel Engineering Centre access.

Council bosses say the new roundabout will help Lotus (Image: Archant)

Council bosses had said that would improve access for expansion plans at Lotus and the Hethel Engineering Centre, allowing new rural businesses to set up in the area and creating almost 900 jobs.