Guildhall redevelopment deal collapses

Interserve (ICL) taken off contract as costs escalate

York Guildhall

The York Council’s, accident prone, plan to redevelop the Guildhall as a business centre has collapsed.

They have been unable to agree a final cost target with preferred contractor ICL.

ICL were awarded the contract last year, with the overall expenditure on the controversial plan then put at over £12 million.

The Council were criticised for putting so much taxpayers money at risk on what was a speculative venture.

A report published today says that

“In accordance with the contract ICL advised their tender submission would be delayed and made an initial stage 2 tender submission on 16 February 2018. Unfortunately this was significantly in excess of the current project budget and contained a number of outstanding cost items which did not provide sufficient proof that the submission evidenced value for money”

Guildhall project layout plans

The Guildhall has been largely unused since the Council moved its operation to West Offices in 2013. Initially it had been expected that a private sector partnership would lead the redevelopment of the site which is in a Conservation area and which includes two important Listed buildings (Guildhall and Council Chamber).

It is unclear what will now happen although there are growing concerns that the empty buildings will continue to deteriorate with taxpayers facing an increasing annual maintenance burden.

The Council has already spent over £1 million on the aborted project.

York Council fraud levels revealed

The Councils auditors are cracking down on Council Tax discounts with 11 cases currently under investigation following a “data matching exercise”.  These concern bogus “single person discount” claims.

A report reveals that the auditors had received 58 referrals for potential Council Tax/Non Domestic Rates fraud.

“There are currently 30 ongoing investigations into Council Tax and non domestic rates fraud.

The council has prosecuted two people for council tax fraud this year including the longest running single person discount fraud ever detected at the authority – 17 years.

In addition, 3 people have been cautioned for council tax fraud offences and 5 people have received warnings”.

The fraud team have completed 26 investigations into potential Council Tax Support fraud to date. The team has produced over £13k in savings thus far. There are currently 32 cases under investigation. To date one person has been cautioned and 10 people were issued formal warnings following investigations in this area.

Other areas of concern are

  • social care where there are 16 investigations in progress.
  • 14 cases of housing fraud – making false claims to secure accommodation – are underway.
  • The financial assistance scheme where 19 cases are being investigated
  • Parking and blue badge misuse. In 2017/18 the council prosecuted two people, cautioned 12 people and issued 30 warnings for disabled badge or parking permit misuse
  • Education – making false statements to gain entry to a school – 2 cases.

The report will be discussed at a meeting taking place on Wednesday