It has been clear for some time that there was never enough money set aside for the York Outer Ring Road project, the council’s finance spokesperson has said.
Cllr Katie Lomas told the Local Democracy Reporting Service construction cost inflation meant it was right that the project is looked at again.
A report on council capital spending says a significant funding gap had opened up in the £65m scheme to dual the road from Shipton Road and the Little Hopgrove roundabout.
It says the project may have to be scaled back and focus on upgrading roundabouts and improving walking and cycling infrastructure while sections of the dualling are omitted.
Details about the revised scheme are set to be revealed this year, with construction likely to begin in late 2026.
City of York Council finance lead Cllr Lomas said the ring road and other projects remained a priority for the council.
But she added: “With the York Outer Ring Road, it’s been clear for some time there was never enough money allocated to deliver it.
“In the intervening period since the plans were first drawn up we’ve had inflation and rising construction costs.
“So it’s right and proper that we look at what we can do now so it doesn’t stop us from delivering more in the future.
“We’re looking at what we can do now as phase one and we want to construct it in a way to support its future delivery as we work to secure funding.”
Ambitious for the city
Council leader Cllr Claire Douglas said funding issues had not quelled the administration’s ambition to see the project through to completion.
The Labour leader said: “It’s really important that we continue to have conversations with the Government and with the York and North Yorkshire Combined Authority and look at how we can deliver on our ambitions.
“We’re very ambitious for the city, we’ve seen with the National Railway Museum announcement that the Government is listening and having the three tiers of the council, the mayor and the Government working together is very successful.
“Inflation is a fact of life and the Government inherited a really awful financial situation, we know now that a lot of the money that was promised was fantasy money.
“But I remain optimistic that we can continue to work in partnership with the Government and make the case for York.”
It comes as £25m pledge from the Government remains under review and the council re-assessed the project against its original business case last year.
Council economy spokesperson Coun Pete Kilbane told the authority’s executive in January the desire to dual the ring road remained.
But the first tranche of works would need to focus on connections to strategic development sites while the council looks for alternative sources of funding.
Councillors will discuss the proposed council budget next week.