Decision on 10 Victoria St Pending

In December 2003, the cabinet agreed to demolish 10 Victoria St, (Brimstone House) and rebuild on the same site. 

On the 8th December Overview and Scrutiny called in the decision and ultimately advised a review of the decision. This was largely for reasons of cost (in excess of £45m) and because removing 219 units from the council’s portfolio would only increase the pressure on accommodation for families in temporary accommodation.

The Victoria St building is not suitable for families, but then neither is B&B accommodation. As we have shown, Newham is currently spending £25m over its budgeted amount on temporary accommodation and much of this goes on hotel and B&B fees, with families in a single room.

We learn from the cabinet papers for May’s cabinet meeting that having looked at the situation, the mayor intends to go ahead with her original plan, only this time it will cost in excess of £50m, although the cost of financing the scheme runs to £177m!

The report is promoted in the names of Mayor Fiaz, Cllr Mohammed and Cllr Wilson.

The aim is to provide accommodation to support vulnerable residents for three years, and then go ahead with the demolition and rebuild plans as originally proposed.

The costs are 

  • Cost of decanting the current residents

  • additional temporary housing costs

  • difficulties finding 219 temporary placements

  • Costs of adaptations for temporary use

  • £50m (plus?) demolition and new-build costs

Newham is currently £25.5m overspent on its temporary housing budget.

It is interesting that a mayor who was so vehemently opposed to public sector loans when taken out by her predecessor is happy to commit a future council to debts of £177m for a project costing £50m.

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