Station Gateway: £5.4million rise in overspend sparks row

Unexpected works on the Station Gateway scheme since last July have fuelled rising costs for the project which was already £28.5 million over budget a year ago, council officials have said.

Coun Katie Lomas, the council’s Labour major projects spokesperson, said the project had been hugely complex but measures had been put in place to better control future schemes.

But opposition Liberal Democrat finance spokesperson Coun Paul Healey said an astonishing amount of taxpayer’s money had now been spent on the project which was spiralling out of control.

It comes as an update on the scheme is set to go before the council’s executive on Tuesday, July 7.

Work first began on the regeneration of the area at the front of York Station in 2023 with an original budget of £26 million.

But an audit has since ruled there had been ‘critical’ weaknesses in the management of the scheme.

Veritau auditors found the council entered contracts for the works ‘at risk’ before legal agreements had sufficiently progressed, with changes to the project later causing delays and pushing up costs.

It also found there were significant delays in reporting overspends on the project which stopped them being dealt with sooner.

The project, which remains ongoing, was originally set to be finished by May last year.

Several overnight closures on roads around York Station were in place throughout June and saw road markings painted, traffic lights and crossings installed and Hardicrete laid around Tea Room Square.

Bus stops near York Station are set to be out of use from 8pm on Friday, July 3 to 6am on Monday, July 6 for the laying of reinforced surfaces.

Queen Street is set to remain open to two-way traffic during the works.

Dates for further works at Queen Street’s Premier Inn junction are set to be shared soon and snagging including pavement repairs is also set to take place.

Issues have emerged since last year including more works being needed to strengthen York’s walls, the discovery of an underground Victorian water tank and delays in moving an electricity substation.

Most of the £5.4m overspend racked up since last year is set to be covered using cash unspent on other transport projects, according to council officials.

Liberal Democrat finance spokesperson Coun Healey said the overspend was not merely down to engineering challenges and called for Labour’s Coun Lomas to resign following the delays.

Coun Healey said: “Labour chose to change the design without properly understanding the consequences and failed to ensure there was professional oversight of the project.

“Those decisions helped create the conditions for repeated delays and repeated cost increases.

“Leadership means taking responsibility when things go wrong, and confidence in Coun Lomas’ stewardship has been lost.”

Labour major projects executive member Coun Lomas said the scheme, which began life under the previous Liberal Democrat and Green administration, was an example of inheriting the bad with the good.

She said: “What we found with this scheme over time was staggering.

“We have sorted out the mess and ensured the scheme is being properly project managed, unfortunately that doesn’t alter the impact of a badly-procured contract lasting years after it was originally approved.

“Residents are rightly frustrated by this overspend and so am I but there’ll be no repeat with any schemes launched under this Labour administration.”