The true muddle that the York Council has found itself in on economic development has been revealed as the authority announces that it is to pay staff using funds from a capital investment fund.
The £28 million, so called, Economic Infrastructure Fund was originally set up to help create jobs in the City. It is partly funded by borrowing money. The principal and interest on the borrowing have to be repaid over a prudent period of time. It also includes income from a “bonus” allocated by the government reflecting the number of new homes constructed in the City (which has fallen dramatically over the last 3 years).
Infamous “no money” letter penned by outgoing Labour government minister. York heading same way?
The fund is partly responsible for the amount that the Council owes having almost doubled since Labour took control of the authority.
Now £1 million of the fund is to be spent on increasing staffing levels at the Council’s West Office HQ.
The Council says that a new team will “undertake further analysis to de-risking sites financially, manage the impact of growth on transport and review and adapt the Get York Building section 106 requirements around affordable housing and ensuring sustainable development”
While it is true to say that work on key development sites like York Central has stalled over the last couple of years, throwing borrowed money at the problem is unlikely to kick start regeneration work.
Recreating “in house” the Inward Investment Board which was scrapped a few years ago is an unconvincing move.
Against a background of an improving economy, and with house sales on the increase, what York needs a transparent partnership approach involving key investors.