Contractors in crunch talks over 40% schools cuts

Grant Prior 12 years ago
Share

Local authorities will start holding emergency meetings with contractors this week as the government ordered school building schemes still going ahead to find 40% cuts in their construction costs.

Stunned local authorities received phone calls last Friday confirming that around 600 schemes spared the axe during the BSF cull will have to cut their budgets by 40%.

Some local officials now fear  they will have to abandon new school construction completely and concentrate on refurbishing existing buildings.

Leicester city council estimates it will have to cut its building programme by £65m while Salford council said the move would lead to cuts worth £40m.

One council chief said: “No-one was really expecting this and we are suddenly faced with finding these huge savings almost overnight.”

One education contractor told the Enquirer: “I can’t see how it’s possible to build a school with just 60% of the budget.

“It’s all very well coming up with these numbers but the result will surely be even fewer schools.”

Around 600 projects are affected and savings of £6bn have been targeted. That 600 also includes some academies.

Each authority’s reduction is expected to be confirmed by next month, with meetings between councils and Partnerships for Schools this week.

The department for Education said: “The secretary of state has been clear that school rebuilding will continue, but that capital expenditure on schools must be more cost effective given the current financial climate.

“He has discussed this already with senior figures in the construction industry about how this best can be achieved.”

Shadow education secretary Andy Burnham said: “Education secretary Michael Gove gave the green light for these projects and now he is pulling the rug from under them.

“It is one thing to ask for efficiencies – quite another to demand them on a scale of 40%.”

Latest news

Materials giant CRH looks to sell contractor Farrans

More than 550 staff set to get new owner
6 hours ago

Ilke Homes pulls off £100m record-breaking fund raise

Largest-ever capital raise by a UK modular house builder to fund expansion
9 hours ago

Construction buyers fear for year ahead

"Construction companies now have a tightrope to walk in terms of being ready for recovery and cautious around investment"
8 hours ago

Gove calls for competition probe into house building

Levelling Up and Regeneration Bill 'strengthened' with new measures
12 hours ago

Schools get £500m for energy upgrades this winter

Extra cash found for better heating controls, insulation and energy efficient lighting
11 hours ago

1,000-home North London scheme approved

Developer Hill will start work in the Spring on South Tottenham site
12 hours ago

Bid race for £500m Suffolk construction framework

Construction and building services firms called up for East of England four year deal
11 hours ago

Mace employs robot dog to avoid slip and trips in tunnel

Robot working in dark and hazardous conditions under Heathrow Airport
12 hours ago

Administrator details confirmed at Southampton M&E firm

Begbies Traynor now in charge at Working Environments as suppliers face large losses
1 day ago

Former Galliard chief takes helm at Inland Homes

New CEO Don O'Sullivan sets out to return south east house builder to profitability
11 hours ago

Applicant numbers nosedive for construction vacancies

Recruitment market gets even more competitive - how the Enquirer can help
1 day ago

Industry veteran to head Henry Bros northern arm

Peter Commins, former Kier and Balfour Beatty northern chief, to spearhead growth drive
12 hours ago

Housing association shuts in-house modular factories

Swan closes loss-making steel frame and cross-laminate timber factories
1 day ago

350-homes approved around iconic London Tube station

Housing blocks to be built around Grade II-listed Hounslow West Tube station
1 day ago

Domis set for £195m Boddingtons Brewery scheme

Developer Salboy buys Manchester site to kickstart long-awaited 556 homes project
1 day ago

John Lewis £500m funding deal to build 1,000 rental homes

Deal to advance BTR flats at store sites in Bromley, West Ealing and Reading
2 days ago

Esh launches new housing retrofit division

Esh Retrofit Solutions will target market to improve the energy performance of social rented homes
1 day ago

Eric Wright wins tricky £52m Liverpool transformation

Contractor working with engineers at Ridge and Partners on "challenging" Stanley Lock Flight site
4 days ago

Investment giant buys Bristol M&E contractor

RDCP Infrastructure acquires Avon Combined Electrical Services
4 days ago

Demolition start for £50m Farnworth town centre rebuild

Caddick Construction is tipped for main works due to start in the spring
4 days ago

L&G Modular strikes deal to build 1,000 affordable homes

Modular homes business teams up with Hampshire's Vivid housing association
4 days ago

Former Erith operations director joins John F Hunt

Scott Exell named new operations director at demolition specialist John F Hunt
5 days ago

Green light for £135m Leeds twin tower resi scheme

Construction to start in New Year on 500 build-to-rent apartments
5 days ago

Mace hits 1m tonnes carbon saving target for clients

Present work pipeline betters 2026 carbon emission saving target
5 days ago

Plans in for £40m surf park at former Kent colliery

Seahive surf lagoon and health resort will be built near Deal
5 days ago

Crushed demolition worker vows to return to industry

Shannon Brasier hoping to return to construction following horror accident
5 days ago

Mount Anvil to start 900-home North London estate rebuild

Planning approval paves way for Barnsbury Estate rebuild in Islington
5 days ago

Green light for major laboratory campus in Cambridge

Developer BioMed to tender first building on 600,000 sq ft lab complex in the New Year
5 days ago

Belfast firm signs the biggest work deal yet under Project Gigabit

Fibrus to hook-up rural Cumbria to lightning-fast broadband under £108m deal
5 days ago

McLaren wins Leeds logistics park contract

Work to start imminently on warehouse complex for Firethorn Trust
6 days ago

Contractor services