Housing PFI Staff Costs Spiral to over £1 Million

9.50.56pm UTC (GMT +0000) Mon 28th Aug 2006

Cllr Ramsbottom reveals spiralling costs of staff and consultants on Miles Platting Housing PFI

The cost of employing consultants and staff to work on the Miles Platting Housing PFI has topped over £1 million, according to Manchester's Housing bosses. The figures were revealed by Housing bosses in answer to a question by Lib Dem Finance Spokesperson Cllr Marc Ramsbottom. Manchester Housing has confirmed that the total amount spent to date in staff costs and consultants on the Miles Platting PFI is £1,030,719, which is £576 per household in across the PFI area. That's before any construction or improvement work has even begun.

Cllr Marc Ramsbottom said:

"The Council has so far spent around £576 per household in the PFI area on just on staff and consultants costs alone. There is no doubt that far more has been spent, but Housing bosses say they do not know how much in total and it is too difficult to calculate. This is money that should have been spent on improving the area and peoples homes."

The Government has allocated £56 million to improve homes in the Miles Platting, Ancoats and Collyhurst South area. The scheme has provoked an outcry from some residents whose homes are to be demolished. These figures show the Council has already spent over £1 million on staff the project, even before the contract has been signed.

Cllr Ramsbottom says that costs are spiralling out of control and the project has been plagued by delays:

"Eastlands Homes has already started improving houses in the Clayton area, and promises are being made to tenants in North Manchester that improvements to their homes can take place within the next year. The people in the PFI area have been waiting over 5 years and so far nothing has happened, apart from a lot of money being spent on staff and consultants. It is clear that the costs and spiralling out of control and there has been delay after delay."

End

Notes:

1. Figures released by the Director of Housing show that the cumulative spending on consultants and staff working directly on the Miles Platting PFI was £1,030,719 as at 11 August 2006.