Dan Peters 06 January 2015

Shrinking council budgets force projects to be axed

Nearly three in four councils have had to cancel or postpone a planned building project in the last two years, research has found.

Suppliers’ inability to work within their available budgets was the most common reason why projects were axed, with almost half of councils affected, according to built environment procurement firm Scape Group.

Schools and colleges are expected to place the most pressure on local authorities’ financial resources for built environment projects this year, followed by health and social care services and highways and infrastructure.

Group chief executive Mark Robinson said: ‘Councils are faced with the unenviable task of using a shrinking pot of money to maintain and improve the buildings that house vital public services.

‘A failure to progress with planned construction projects will leave many areas desperately short of school places and healthcare capacity while their existing infrastructure decays.

‘Despite councils’ concerns, there are ways to beat the inevitable financial hardships coming over the next twelve months.’

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