20% Inflation Spells Trouble for City Council Projects (Leeds Liberal Democrats)

Leeds Liberal Democrats <info@leedslibdems.org.uk>

20% Inflation Spells Trouble for City Council Projects

May 15, 2003 12:00 AM

Councillor Mark Harris, Leader of the Liberal Democrat Group on Leeds City Council, has expressed his concern that inflation for buildings schemes across the City is expected to run at 20% during the next year.

Cllr Harris said "At yesterday's meeting of the Council's Executive Board we were informed that tender costs for building work are 'forecast to rise by more than 20% during 2003'. This will affect dozens of projects the Council has in its capital programme, including school buildings, new extra-care facilities for the elderly, the planned new swimming pool in South Leeds, and the investment in improving Housing across the City. The Council's capital programme for 2003/04 runs to £212 million."

"It is essential that the Council keeps a tight rein on building costs and I have requested that an urgent report is brought back to the Executive Board as soon as practical which allows us to see how actual tender prices compare with the Council estimates for schemes in the Capital Programme. It seems amazing to me that with the Chancellor and the Bank of England claiming inflation is under control, Officers expect building costs to rise by 20%. If this really is the case the Council may have no choice than to cut back on prestige projects which it is so keen on."