Landmark projects in Leicester facing axe because of Government cuts
Major regeneration projects in Leicester face the axe as a result of Government cuts.
A briefing note leaked to the Leicester Mercury show that the city's proposed £9.2 million business quarter and flagship science park – which could have created up to 600 jobs – look set to be scrapped.
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Councillor Abdul Osman
A £67 million bus station also looks unlikely to go ahead.
Leicester City Council's regeneration chief, Councillor Abdul Osman, said: "These aren't just cuts we're facing, it's a guillotine that's falling on our regeneration plans that'll massively affect the city."
The cuts have come about because East Midlands Development Agency (Emda), which spends government cash, has been ordered to find up to £30 million in savings in its £110 million budget this year – £6 million more than first expected. The report from the agency said: "Stopping the new business quarter scheme would deliver a high proportion of the overall spend reduction."
Although it admitted cutting the science park on top of that would be an unfair "burden" of cuts for Leicester, it said: "It seems an inevitable candidate for savings."
The business quarter, close to the railway station, would need £9.2 million to get the next and final phase of the development under way.
Much of the cost is earmarked for a new mail depot, and to clear the existing site for development.
If the £3.5 million pledged by Emda was pulled, the scheme would be unlikely to go ahead.
The city council hoped a science park development for up to 50 firms on land next to the National Space Centre would kick-start a boom in enterprise.
It was anticipated that up to 600 jobs could be created.
It would cost £4.8 million and the majority of the funding was due to come from regional and Government sources.
While only £500,000 was due to come from Emda, the report warned that if one source of funding was removed, others were often lost as well.
Funding for the replacement for St Margaret's bus station is yet to be secured and councillors believe it is now unlikely to go ahead in the near future.
Coun Osman said: "Out of the three projects in the pipeline, we'd want the business quarter to go ahead the most.
"It would bring investment to Leicester and if funding was withdrawn we would try to find some form of business backing to help or look at using some of the council's own funds.
"As for the other two, though, I'm now very doubtful."
Martin Traynor, managing director of Leicestershire Chamber of Commerce, said: "It will be hugely disappointing if the business quarter, which is an important part of the development of Leicester, did not go ahead.
"Without public backing from Emda it could be years before it's back on the agenda.
"I simply can't see it working without its backing."
Coun Osman said: "If work had started sooner these projects could have gone ahead without the risk of losing their funding.
"But I think the council did everything it could to push the plans along.
"We also had to rely on outside bodies to work together, too.
"There were some delays in getting things signed off by Emda."
Jeff Moore, chief executive of Emda, said: "Many parts of the public sector have been asked to take their share of a £6bn reduction from this year's budget.
"As part of this process, England's regional development agencies have been asked to find £270 million from our programme budgets.
"We believe our share to be approximately £24 million.
"We are now working through the detail of this reduction."
10 Comments
by Michael, Market Harborough
Friday, June 04 2010, 8:51AM
“You've got to admire how Labour and their client organisations, for example, the Nottingham Development Agency, sorry, I mean emda, can come up with madcap ways of wasting money and then have the nerve to complain when action is taken to stop the waste. These organisations just like spending other peoples money and insist they know best. The only creativity they demonstrate is thinking up new and usually bogus "outcomes" to justify their wastefulness. Their budget doesn't need cutting it should be abolished.”
by david, leics
Thursday, June 03 2010, 7:15PM
“Thank God! The new government has said there will be a freeze on council tax. No doubt the city council will think of something else to cut so the spending can continue!”
by Karin, Oadby
Thursday, June 03 2010, 5:14PM
“What a tragedy the cuts came too late to save us from the blot on the landscape know as Curve.”
by Matt, Leics
Thursday, June 03 2010, 2:10PM
“Got to say Nick, I agree with Martin when he says he wasn't blaming the tories as such.
It's more a case of suggesting we try and learn from mistakes of the past. Towns and villages throughout england that suffered under the 'ruthless destruction of centres of traditional industry' to quote Martin, are now the centres for crime, unemployment, low educational achievement, alcohol and drug abuse and all the other problems associated with social depravation.
At the time the actions by the conservatives were deemed necessary to put the country on better financial footing, and while this may have been true it should have been done with some sort of long-term strategy rather than what was abandonment of these communities.
We need to get the balance right that's all. Cameron seems to possess the kind of social conscience that Thatcher clearly never did so hopefully he will make the right cuts.”
by jon, leicestershire
Thursday, June 03 2010, 1:19PM
“Councillor osman, that well-known charnwood LABOUR councillor with a so-called LEAK. Why is a county councillor reporting on city council issues?? Propaganda with the mercury in cahoots. the truth is the city council have unrealistic expectations and ways of squandering tax payers money and when the plug is pulled they play the party political game. Just as well as the city council have taken any heritage and soul out of leicester and replaced it with concrete. This is sleazy politics and if the labour government hadnt screwed the nations finances then these projects could have still gone ahead. Labour have themselves to blame.”
by martin, le3
Thursday, June 03 2010, 12:56PM
“Nick - please quote the part of my previous post that blames the Tories for the current situation? I expressed some concerns I have about them and their record in government - but that isnt the same thing as blaming them for the current situation is it? Or perhaps, in your mind, it is?”
by Nick, Leicester
Thursday, June 03 2010, 12:48PM
“As Avtar said, Nottingham gets most of the funding (as reported before from the LM) so maybe our council should point this fact out and tell the EMDA that they should cut Nottingham projects first!
Martin, le3. Stop the blame game on the Torries. Labour had more than three terms to sort this country out and what happened, we are all in this mess! You may as well blame Pitt the younger and the Wig Party or the Romans for giveing us a goverment.
Myself, I blame Clement Attlee ;) (he didn't tell the Americans to do one on their War Loans re-payments and nearly bankrupt the U.K. after WW2).”
by Nick DiPerna, West End
Thursday, June 03 2010, 10:31AM
“Government cuts haven¿t ruined Leicester. It¿s corruption and appalling planning decisions that has ruined this once fine city.”
by Avtar, Oadby
Thursday, June 03 2010, 10:25AM
“EMDA has alway favoured Shottingham and the sooner it is abolished the better, and that would save a great deal more than £9.2million!”
by martin, le3
Thursday, June 03 2010, 9:58AM
“The bus station sounds a sensible cut. But spending on infrastructure that can lead to the creation of employment and well paid jobs, seems like it could be a little more short-sighted. There is a distinction between spending unproductively and spending which is an investment in everyones future - unfortunately, I dont think the present government see this distinction. Or at least not when places like Leicester are involved.
The real risk is "throwing the baby out with the bath water" - a complete over reaction to errors and wasted spending of the previous government that causes much greater problems in 5 years time. Personally, I think the Tory's have form on this going back to the 1980s - the ruthless destruction of centres of traditional industry and the communities around them, and the failure to even consider the long term consequences. I believe even Norman Tebbit has conceded as much in the last few years.”