David Morris MP has been probing into the financial history of the Chatsworth Gardens project in Morecambe. David has met with Minister for State for Housing and Planning Brandon Lewis MP and had asked him to investigate where all of the funding allocated to the area had gone.
Brandon Lewis MP has written to David Morris MP with a breakdown of all funding allocated to the Chatsworth Gardens project from Central Government. The project started in 2004 and in 2005 £7.9 million was awarded by the Property and Regeneration Programme, to retain and remodel the best houses back into family dwellings . As part of the terms of this money the City Council had to procure the assistance of a private partner and in this case it was Places for People.
The partnership conducted street improvements and made 47 properties structurally safe. However in the fiscal downturn in 2008 the project ran into financial difficulties. The partner developer Places for People withdrew from the scheme in November 2009 and this then meant that the council had defaulted on the contract for the funding. The council halted works in 2010 beyond any legal obligations. The project came to a complete stop in 2011 when the remaining £4million of unspent grant was returned to the HCA (Homes and Communities Agency).
Brandon Lewis MP said ‘ It is unfortunate that the Council had not entered into a legal agreement with ‘Places for People’ in respect of the Chatsworth Gardens Project as that may have enabled them to recuperate some of the expenditure that had been spent on the Developers behalf’
David Morris MP said ‘ I am appalled to hear of the latest financial mis-management by Lancaster City Council. The people who live in the West End of Morecambe have been let down by Lancaster City Council, it is simply unacceptable to have to send £4million pounds back to Government because a project has been mismanaged.
I would have hoped that the Council would have learnt from their contractual mistakes during the Blobbyland saga but it seems that they walk from one blunder to another wasting taxpayers money left right and centre.
The only positive that can be drawn from this is that they are now starting work on the project, however I will be watching progress with a close eye to ensure that the residents of the West End are not let down by the council again.’