Difficult decisions will have to be taken on York’s Station Gateway and Outer Ring Road projects amid spiralling costs, senior councillors have said.
An £18m funding gap has opened in the refurbishment project outside York Station’s entrance, along with one of more than £110m for dualling the Outer Ring Road.
Cllr Katie Lomas, the council’s Labour finance spokesperson, said they remained committed to finishing the Station Gateway scheme but tough decisions would be required to keep it on track.
Labour council deputy leader Cllr Pete Kilbane said both projects had faced significant increases in costs including for construction and energy that they now needed to face up to.
The Station Gateway scheme is well underway. Queen Street Bridge has been demolished and some bus stops opposite the railway station are already relocated.
But future phases of the project are at risk unless the £18m can be found soon.
Money could be directed away from the Outer Ring Road and Castle Mills Bridge projects to the Station Gateway to finish it.
The council would also look to secure LNER’s promised £600,000 contribution and it would explore whether funding is available from the York and North Yorkshire Combined Authority.
Ring road scaled back
It is expected that funding redirected away from the Outer Ring Road scheme could be recouped later through financial contributions from forthcoming housing developments such as Clifton Moorgate.
Expanding the Clifton Moor roundabout remains the council’s priority.
Works to those at Strensall, Haxby, Wigginton and Monks Cross would happen once funding becomes available.
The budget remaining for the Outer Ring Road stands at £51m, against a £164m cost to complete the scheme according to the latest estimates.
Senior Labour councillors said the latest figures have put what could now be possible with the scheme into perspective.
Cllr Lomas said the ongoing Station Gateway scheme, which includes upgrades to bus and cycle infrastructure and public space improvements, had seen huge increases in construction costs.
The Labour executive member said: “We inherited a scheme which shockingly had no cap on costs to the council, a highly unusual and very risky approach for local authorities entering into this type of project.
“On top of this, it transpired it had not been properly costed.
“This scheme is hugely important, some very difficult decisions are required and politicians need to learn from this and not write open cheques in the future.”
Council deputy leader Cllr Kilbane said the choices the ruling Labour group would face would be tough but they would not stick their heads in the sand.
The Labour deputy leader said: “The York Outer Ring Road project is subject to the same cost inflation as other major schemes.
“But it is clear, that delivering Clifton Moor roundabout is a priority to enable the building of new homes on the north side of the city.
“The council will deliver a phasing plan that’s consistent with planning permission for the entire dualling scheme.”
The council’s executive will discuss the authority’s options for both projects in July.