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28
Aug 2022
County council 'monitoring' major projects amid soaring inflation
North Yorkshire County Council officials have said they are monitoring the cost of major projects amid soaring inflation levels.
The council was this week forced to plug a £7.2 million shortfall for its Kex Gill realignment after the overall cost of the scheme soared due to inflation.
The project is now set to cost £68.6 million - a 12% hike from its original figure.
The Stray Ferret asked the county council whether it now expected to find more funding for other projects, such as the £11.2 million Harrogate Station Gateway scheme and the second phase of the Otley Road cycle route.
Gary Fielding, director of strategic resources at the council, said:
The A59 at Kex Gill, which is to be realigned after historic problems with landslips.
Mr Fielding this week warned senior councillors that the authority faced “high risks” as the cost of projects, such as Kex Gill, increased in price.
He told councillors that the “burden of risk” would fall on the council should any “unforeseen events” see additional cost for schemes.
This additional cost would come at a time when government funding is either being cut or capped.
Mr Fielding said:
Otley Road and Station Gateway
The comments come as the county council looks to press ahead with some of its major highways schemes.
The authority is due to procure a contractor for the second phase of the Otley Road cycle route this month.
The cost for the first phase of the scheme was £827,000.
Read more:
- Kex Gill realignment cost increases to £68m
- Delayed A59 Kex Gill reroute now set to start next year and finish in 2025
However, soaring inflation could see the figure for the second phase be higher than anticipated.
Melissa Burnham, highway area manager at the county council, told the Stray Ferret last month:
Inflation and the cost of living crisis has also raised concern over Harrogate's Station Gateway project.
While the county council would not be drawn on any potential increases to the cost of the scheme, officials said previously that cheaper materials could be used.
Both county council and Harrogate Borough Council officials have remained committed to the scheme and recently pledged a further £300,000 to the project.
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