Regular readers of the Oracle will be aware of the Council’s Better Queensway project, a large-scale multi-phase regeneration of a significant section of central Southend. This project mainly involves the Quantock, Malvern, Pennine, and Chiltern tower blocks, along with the Essex Street and Short Street car parks.
Project Scope
The Better Queensway project includes the closure of the Queensway road underpass and the construction of a new road.
Partnership with Swan Housing
In April 2019, the Council procured Swan Housing Association as the Joint Venture Partner to secure planning and deliver the regeneration project. However, in December 2021, the Government regulator revealed that Swan Housing was effectively bankrupt. This situation ultimately led to Swan Housing Association becoming part of Sanctuary Housing Association in February 2023.
Sanctuary Housing Withdrawal
In pursuing this unviable pipe dream, £9.2 million in costs were racked up, and the Council faced the prospect of returning nearly £20 million in Government funding. After previously entangling themselves in this mess, the Administration revealed plans last month to alleviate the crisis. To be clear, this is a crisis. As the Leader last year, I warned that these costs, if the project collapsed, would have to be paid back, causing certain bankruptcy for the Council.
Administration’s Plans
So, what are the Administration’s plans to tackle the crisis? Unbelievably, it is to carry on with the unviable scheme!
No Guarantees
The latest report confirms that there is no guarantee that a single breeze block will be laid or a single home built. Yet, the plan is to move ahead with closing the perfectly good Queensway road underpass to build the new road, which will reduce the Queensway junction from eight lanes to four, introduce a 20mph speed limit, speed bumps, traffic lights, and a roundabout—all at ground level.
Financial Shortfall
This plan still doesn’t resolve the problem. Constructing the new road will cost approximately £21 million. After paying back the £9.2 million debt, this leaves a shortfall of approximately £11.5 million.
Borrowing Costs
This money will have to be borrowed, with the borrowing costs amounting to over £600,000 per year for taxpayers. It is simply economics of the madhouse.
We are only a few months into this new Administration. With the prospect of the Administration lasting until 2026, what could possibly go wrong!
By Cllr Tony Cox
Leader of the Conservative Group
cllrtonycox@southend.gov.uk