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Last Updated: Monday, 10 January, 2005, 19:37 GMT
Review for cash-strapped council
Bath Spa Project
The council is keen to avoid a repeat of the Bath Spa project
A council's involvement in ambitious plans to build homes and offices on wasteland in Bath may be reviewed, it has been revealed.

A new report calls for Bath & North East Somerset (B&NES) Council's future financial commitment to the Western Riverside scheme to be re-examined.

It is among nine major projects highlighted in the report on the cash-strapped council's spending plans.

B&NES is faced with having to borrow �25m to meet its financial commitments.

The council already plans to commit a total of around �5m to the redevelopment of the 26-hectare Western Riverside site.

'Highly concerned'

The project includes plans for more than 2,000 homes, plus offices and shops

But B&NES is keen to avoid any repeat of the Bath Spa project, where its financial commitments continue.

The scheme is millions of pounds over budget and more than two years overdue.

The report, due to be considered by councillors on Wednesday, calls for a review of the Western Riverside scheme "to justify and/or limit further council investment".

The nine major projects highlighted in the report, range from new schools and homes for the elderly to plans for new council offices.

It states that B&NES chief executive John Everitt is "highly concerned at the council's risk and funding exposure on its major projects".

It had been estimated that the council would have to borrow �13m in 2005/06 to meet its financial commitments.

But rising costs, including extra planned spending on the Bath Spa project, have increased this figure to �25m, the report states.

Cllr Malcolm Hanney said the council could choose to scale back its commitment to some projects or even delay the roll-out of schemes to reduce this figure.

"It's probably unlikely we will shelve any schemes," he added.

"We are looking at how we mitigate our funding requirements and how we take full account of costs and risks in the full financial plan."




SEE ALSO:
Council warns of budget shortages
28 Nov 04 |  Somerset
Ongoing spa saga angers rural MP
07 Oct 04 |  Somerset
Spa leaks 'worse than expected'
30 Sep 04 |  Somerset
More embarrassment for Bath spa
16 Jul 04 |  Somerset


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