Meanwhile on Planet Babergh

Just when you think that lessons gave been learned, you realise that very few people pay attention to history, whether it is recent history or not.
Readers of this blog may recall that on May 3rd 2016 I posted a commentary on the then continuing saga of East House, which Suffolk County Council had handed back to Babergh who didn’t know what to do with it except to evict the tenants and leave it empty. The unfortunate history of East House is that whilst Babergh made up its mind, the market moved on and any rehabilitation/upgrading with a view to selling was rendered uneconomic.
This week’s news is that Babergh District Council are to increase the debt threshold for Babergh Growth Ltd., from £3,7 million to £7m to facilitate cash flow. The company is responsible for the redevelopment of Babergh’s former offices in Corks Lane We can assume that the cash will be flowing all one way for some time to come as the cash holdings of the company were only £61,433 at 31st March 2021.
The development is expected to realise 57 homes. Due to increased costs and impacts from Brexit, the war in Ukraine and inflation, the costs of the scheme have gone up by £680,000 over four years– which begs the question why is there an increase in borrowing powers of £3.3 million.
And now comes the prize-winning comment from the Great Leader of the Rainbow Coalitioned Council (John Ward) “Ultimately the development is still expected to break even or even show a modest profit”
Why are we undertaking a marginal project? You can almost hear echoes of “With a fair wind and a few sunny days, this time next year we could all be millionaires”
It’s time to go back to basics. The economic outlook is not good and the project needs to be reworked to bring the projections back to a reality which will give comfort to the residents that their leaders know what they are doing.

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