A regeneration project in Birkenhead is set to exceed its budget by £12m, with a report outlining its ‘risks and implications’.
According to a review carried out by the Internal Audit team at Wirral Council, the local authority is expected to ‘significantly overspend’ on the Birkenhead Town Centre Movement Scheme.
Among the scheme’s several contractual shortfalls, the report highlighted high Regeneration staff turnover and ‘unrealistic’ delivery timeframes, as well as ‘frustration’ over the internal management of the project.
The review also emphasised the issues faced by the Regeneration and Highways departments, such as ‘limited capacity’ and ‘unclear division of responsibilities’.
The report revealed that a budget gap of £3.5m to £4m was predicted before construction had begun, compounded by inadequate project management and ‘pressures to meet grant funding deadlines’.
Acting Chief Executive, Jason Gooding, commented: ‘We can see that the cost of the Birkenhead Town Centre Movement Scheme was over budget before it had even begun, and from an initial £12m will now be potentially over £24m to complete, and significantly late as well.’
Council Leader, Cllr Paula Basnett said the ‘situation is completely unacceptable’.
‘Residents must be confident that public money is being managed responsibly, transparently, and with full accountability. Our communities deserve regeneration that is ambitious, but also well-executed and genuinely beneficial’, she added.
The council’s Risk Management Committee will gather to discuss the report on September 2, during which members will be asked to accept the final action plan before a meeting on November 4.