AC-2024-LON-001877 - [2025] EWHC 2132 (Admin)

On 9 March 2023 Cabinet resolved to approve the increase in the budget for the Scheme recommended in the March report. The Cabinet’s decision was subsequently “called-in” for review by the Second Defendant’s Overview and Scrutiny Committee. Concern was raised at the meeting of the Overview and Scrutiny Committee held on 29 March 2023 about the rising costs of the Scheme, the impact of funding the Scheme on the Second Defendant’s housing revenue budget and the viability of the Carpenters Estate masterplan. The minutes record that members questioned the viability of the Scheme given that it was to be funded from a variety of sources that were uncertain, such as future rental income. There were concerns about the broader implications of using funds from the housing revenue account when there were many existing burdens on that source of revenue. The Overview and Scrutiny Committee resolved that Cabinet’s decision of 9 March 2023 should be referred back to Cabinet for reconsideration and that a number of key concerns and recommendations be submitted to Cabinet, including –

The minutes of the meeting of Cabinet held on 30 March 2023 in response to these recommendations record that they were rejected. The following points are recorded in the minutes –

“…officers gave assurances on the financial viability of the Scheme and that the Council had received independent financial advice from specialists, that the scheme viability would be kept under constant review, that there were checks and balances in place to monitor expenditure, and that an overall masterplan would be developed with flexibility to change any of its components if required.

….

The representatives of Overview and Scrutiny Committee (OSC) explained that OSC were in support of the project to regenerate the area and had called in the decision due to the increased pressures on the budget and project costs overrun. Officers explained that inflation and additional specifications caused the additional expenditure and extended time frame of the Scheme and added that all these costs were accounted for. In addition, officers stated that there would be further reflection on the costed (sic) and CPO process to apply lessons learned to future schemes.”

Cabinet confirmed their decision of 9 March 2023 to approve the revised budget for the Scheme and to make a compulsory purchase order under section 226(1)(a) of the 1990 Act to facilitate delivery of the Scheme.