We know that rising costs of regeneration schemes in the pipeline have led to proposals for changes in tenure. There is a clue to possible similar problems in South Kilburn in the last paragraph of the Finance Report going to Cabinet on Monday morning that follows information on slippages totalling £16.2m.
South Kilburn has a budget
variance of £16.2m, owing to slippage.
There is a £5.2m slippage due to
acquisitions being forecast in future years primarily
on Austen House and Blake Court. A £4.9m SCIL contribution from the NWCC
projects will not be used within the financial year. There is a £4m slippage
on the Carlton and Granville project, the project has moved into the construction
phase after procurement and the forecast now reflects a more realistic
schedule. There is slippage of £1m on the District Energy Network
project which will be used in future years due to the concept design being reworked to meet the amended requirements of the London Plan. There is also a £1.1m slippage on the infrastructure works at Peel and Carlton Vale Boulevard.
Risk and Uncertainties
The mixed-use nature of the scheme relies on developers making the schemes viable and providing the affordable housing alongside the private units. Possible difficulties with high inflation could make this more difficult, so the programme is reviewed regularly to ascertain the potential impact on future phases.