The Carpenters Estate’s renewal in Stratford sees cost jump by £600M, raising concerns among Newham councillors.
A report says building costs went up and new safety rules for tall buildings added costs. The council plans more homes, too. They now anticipate needing 14 years to finish the project, versus the initially planned 11.
Initial plans started over 20 years prior. Rokhsana Fiaz became mayor in 2018. She rejected prior plans, and then members approved budget increases. This includes upgrades to James Riley Point.
Councillors later questioned the report, with an overview committee raising concerns. They have the power to force a review of decisions before changes are made.
Carleene Lee-Phakoe is one such councillor who wanted more scrutiny. She thinks this project has issues and noted that it’s a huge undertaking for Newham. She specifically cited concerns related to finance, ethics and strategy.
Lee-Phakoe seeks Carpenters Estate restoration. She cannot accept mismanagement and risk. She wants a pause for reflection and seeks a reconsideration by the council.
Lester Hudson asked about James Riley Point’s costs, which rose £20 million since September 2023. He wants to know the reasons for this spike; he noted that costs rose £40 million in three years.
Fiaz responded that the report was realistic and reflects construction increases. The project faces tougher safety rules, including fire safety regulations, she added.
Lee-Phakoe also noted that the project extension shifted from 11 to 14 years. She asked about long-term funding and fears future cost increases for the effort.
A council officer said costs might still change and future financial decisions will happen if viable. The officer stated that some residents will move in within three years.
Joshua Garfield, who grew up on the estate, worries borrowing will hurt the council. He asked about other funding options to mitigate the risks.
Garfield fears future budget issues and wants diverse funding to avoid debt. He warned that interest could consume the entire budget and aims to avoid that outcome entirely.
The committee met privately and made their own recommendations. They sent the decision back to the cabinet, which requires reconsideration due to the concerns raised.
A council spokesperson explained that the call-in is a normal part of scrutiny. The committee referred the decision back and the cabinet will consider this on Monday.