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Karen Buck MP |
Spiralling costs hit tax payers
Report finds property managers are to blame for £2 million overspend
SPIRALLING spending on two major building projects have cost taxpayers more than £2 million.
The regeneration of Paddington Green primary school in Park Place Villas and 10-year works to the Lisson Green estate have both cost more than £1 million than expected.
The report from an overview and scrutiny committee published on Monday blamed the council’s property managers.
It stated: “The property division lacks project management skills and further clarity of accountability and roles is required”.
Opposition councillors say the spiralling costs were the latest in a long-running series of “property bungles” which includes the overspending of over £2 million on various projects in Paddington, including the Stowe Centre, and nearly £600,000 of abortive costs involved in the failed Berwick Street redevelopment project in Soho.
Councillor Paul Dimoldenberg, leader of the Labour group, said: “Once again the Conservatives have been shown to be totally incompetent when it comes to spending council taxpayers’ money.
“Another £2 million has been wasted by Conservative bungling. This £2 million could have been spent on new homes for those in need or on improved social services for vulnerable children or the elderly.
“Now, once again, public money is being wasted on bailing out the Conservatives for yet more property failures.”
Karen Buck, Labour MP for Kensington North and Regent’s Park, said: “Lisson Grove was managed very badly. CityWest Homes must make sure its contractors are better monitored in the future.”
Derek Barnden, director of property and strategic projects said: “Paddington Green School required additional funds because the starting budget was not sufficient to complete the building works. No blame has been attached but we have learned lessons for the future that we need to ensure more lead in time to developments so that we avoid additional costs.
Lesley Meeks, CityWest Homes director of projects, said: “The overspend at Lisson Grove was due to a delay caused by unforeseen ground obstructions and additional asbestos removal.
“We are delighted with the final result of this vital regeneration.”
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