A damning internal review of the £500 million Perry Barr Games Village and homes project led by Birmingham City Council has revealed there will be ‘major financial consequences’ for the next 40 years as a result of ‘multiple failures’.
The project, hailed as a money spinner for the city, will make a loss estimated at £150 million to taxpayers. It was ‘over valued’ from the start, and the council has struggled to find buyers, according to the internal report. Brummie taxpayers will now have to foot the bill for paying off a loan, at a cost expected to run to £8 million a year for 40 years.
READ MORE: Revealed – ‘appalling waste’ of Perry Barr project that will cost Brummies £8m-a-year for 40 years
They are paying the price for ‘arrogance and incompetence’, said one opposition councillor in response to the findings. The main ‘lessons learned’ from an internal review into the scheme are published today, Tuesday January 14, in a report to the council’s Cabinet, which meets next week to discuss it. Commissioners brought in to oversee the failing Labour council just over a year ago said it was a clear example of the poor governance that has blighted the city.
Follow this afternoon’s live blog for full details, our reflections on the homes scheme, and reaction.