Issue - meetings

Consideration was given to a report on the overview on the progress of the Creating a Better Place strategic framework and capital regeneration programme.

The Committee was informed that Approval from Cabinet was obtained in August 2020 for the revised programme. Following discussions with Scrutiny Committee Members, the new programme reflected on the priority areas to support the Borough’s economic and social recovery in support of the financial implications associated with the response to the Coronavirus (CV19).

Members were provided with the priority areas which were as followed:

·         Building quality homes

·         Providing opportunities to learn and gain new skills

·         Providing opportunities to grow local businesses and create jobs

·         Ensuring Oldham is the greenest Borough

·         Embedding sustainability, energy efficiency and low (zero) carbon

·         Improving life-chances and the health and well-being of our staff, residents, and local communities.

The priority areas would bring social benefits to the Borough, which included the potential to deliver over 2,000 homes in the town centre by embracing brownfield sites to support urban development which would reduce the amount of greenbelt needed to meet Oldham’s Housing Need. Alongside that there was a potential to deliver an additional 1,000 jobs and 100 apprenticeships whilst also improving the populations life chances and health and well-being.

Members were informed of the Environmental Benefits which included:

·         Public sector leading by example – zero carbon by 2025

·         Zero carbon new homes and businesses by 2030

·         Energy efficient buildings – homes and businesses

·         Greenest Borough in Greater Manchester

·         Cleaner air

·         More electric vehicle parking / promotion

·         Better connected environment for healthier travel choices

·         Thriving communities and businesses.

The revised programme had helped reduce the Capital investment by c£90m with external funding bids to be sought. The programme had also identified £8.5m of revenue savings over the next 5 years, with the first year covering 2021/22. There had been a £285m capital commitment from the Council along with seven confirmed bids, two bids awaiting news and one bid to be submitted following publication of the White Paper, However, it would initially cost £125k of revenue to secure the Levelling Up Fund bid. The programme would allow for a 5-year delivery programme with +22% social value added. Out of the £7.5m contract value, £3m had been received back.

Whilst there were several benefits to the programme, there would be challenges to face mainly around construction. Within the construction market, Contractors were not able to hold prices by more than a few weeks (standard 90 days) that could be affected due to the decision-making processes. There were also issues of material shortages that caused escalation of prices and longer ordering timescales. The construction market had also suffered during Covid due to sourcing sufficient labourers and drivers and sourcing site accommodation. It was estimated that the current issues would cause a minimum of 20-25% increase to budget costs with Economic Specialists predicting that the problems would continue for 3-5 years.

Construction Insurance had also become a major challenge, prior to the Coronavirus pandemic, 17 insurers were available  ...  view the full minutes text for item 6