News

£320 million increase in cost of Carpenters Estate development

Peter Landman reports from February’s Council Cabinet meeting

Old Town Hall Stratford
Old Town Hall Stratford Katie Chan CC-BY-SA-4.0

Newham Council will have to find £320 million to fill a hole in its budget for the billion pound Carpenters’ Estate redevelopment because of unbudgeted increases in construction costs and the money needed to meet new safety regulations on high rise buildings.

The Council Cabinet recognises that this unexpected increase in costs is high, but they hope that over time the increased costs will be offset by income when the final development of 2,

300 new homes is complete. Councillors were told that the sale of private homes and rents collected from the planned 50 per cent affordable homes should reduce the impact of the increase in costs.

In addition, the Council  expects more grant money from the Greater London Authority. The money needed to plug the hole in the budget will also be supported by borrowing from the Public Sector Loan Board, a separate financial funding source from the Council’s own funds.

The Cabinet was told, although there have been delays in getting the Carpenters masterplan development off the ground, by next year around 1,500 new homes are expected to be
handed over. 

The development is being carried out through a Design and Build Development agreement with the Council-owned company, Populo Living, an arrangement that councillors were told will eliminate the levels of profit that would go to a private development
company.  

While the major part of the home-building work has been delayed a number of community projects have been out in place or are underway. A temporary play space and improved cycling facilities have already been put in place and a new café is scheduled to open in spring next year, and and planning permission has been obtained for two new
playgrounds, and an outdoor gym.

Newham continues to put its house in order

Leaders of Newham Council have signalled their determination to improve the state of Council Housing with the signing of four contracts that should see internal upgrades for kitchens, bathrooms and internal fittings.

The Council Cabinet has agreed the programme of work as the Borough continues to make amends for the shocking report last year from government inspectors who condemned the poor state of the Council’s social housing. The Council received the lowest
grading when after an inspection by the government’s Social Housing Regulators.

The Council has acknowledged that 20 percent of its homes do not meet the official Decent Homes Standard, and this must be put right.

The Cabinet agreement to set up four contracts with different contractors in separate areas will aim to improve and upgrade kitchens, bathrooms, heating systems, windows, doors and roofs. The money to pay for this work will come from the Housing Revenue account reserves.

Public safety action targets dog owners and street drinkers

The Council Cabinet is taking aim at dog owners and people who make a nuisance of themselves drinking in public.

The Cabinet meeting in February agreed to extend the existing Public Space Protection Order which will now force dog owners to keep their dogs on leads while walking them on public highways, and not to take more than four dogs. They will also be required to clean up any mess their dogs make.

Regarding public complaints over the nuisance caused by street drinking, police community safety officers and council safety officers have the power to stop the drinking, throw away the drink, and give warnings. Where appropriate they liaise with other council services over personal issues that may be associated with the drinking.

People who breach the rules face penalty notices, and fines may be issued. If this does not work, court action may follow.

£2 million holiday bonus for children in need

The Council Cabinet has been told that Newham expects to receive a grant of £2 million from the government’s Holiday Activities and Food Programme Grant.

The support will go to children and young people entitled to benefits-related free school meals. 

The Council has widened this to children from families in hardship, particularly those with no access to other public funds.

The grant will see the creation of holiday clubs providing at least one nutritious meal per day as well as at least four hours of fun-related activities each day. At the same time there will be nutrition advice for parents or carers and, if needed, referrals to other support services as needed.

The Council plans to work closely with the public health service and share the programme with voluntary sector organisations.


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