Town Deal update with inflation warning

The latest progress report on Blackpool’s £40m Town Deal warns inflation is one of the biggest risks with rising costs impacting spending plans.

While five of the seven elements of the programme are progressing well, the relocation of the courts and development of Revoe Sports Village have stalled.

But a progress report due to be presented to the council’s executive on Monday March 17 says nevertheless work is continuing to ensure all the schemes come to fruition.

By the end of last December, £25.5m of the funding had been spent, with that total predicted to reach almost £32m by the end of March this year.

Blackpool’s Town Deal funding was confirmed in November 2020, and is due to be spent by the end of the next financial year although it is hoped to extend that deadline.

Projects include £9m to acquire land for the Multiversity in the town centre with site assembly almost complete; £7.5m towards construction of a new access road to the Blackpool Airport Enterprise Zone; £4.5m towards renovating the Stanley Buildings in the town centre to create a small business hub which is well underway; £4.5m which has gone towards new features for the Illuminations and £500,000 which has been spent on providing a jobs and training hub called The Platform.

However two projects have been delayed including the Revoe Community Sports Village and new East Stand at Blackpool Football Club which received £6.5m; and £7m towards the relocation of the magistrates court which was held up due to the contractor going into administration.

Government chiefs are currently carrying out a routine ‘deep dive’ into how the Town Deal funding is being spent with the council saying this is part of usual procedures to ensure money is spent correctly.

The report says: “To date the Ministry of Housing, Communities and Local Government Assurance and Compliance Team have not identified any issues with submitted returns or identified adverse concern with programme delivery.”

It warns inflation is “a major concern for all parties” with the government expecting projects to continue “to deliver the full extent of their original business case.”

The report adds: “All projects have been affected by inflation (goods, services and rising wages). Most severely affected are those with significant construction or demolition elements to deliver (i.e. all bar the Illuminations Rejuvenation and The Platform schemes).

“Increased shipping costs have been identified as a growing problem for the Illuminations project as many of the parts are sourced from abroad.

“It appears the Revoe Sports Village scheme will be adversely affected by higher than expected costs – the football club is revisiting cost plans to identify how it can deliver a scheme that approaches that of the original business plan within its desired budget.”

The executive is being asked to note the progress of the Town Deal programme.