Wirral Council Faces £12 Million Overrun in Birkenhead Regeneration

Wirral Council has announced significant developments regarding the regeneration of Birkenhead town centre after an internal investigation revealed the project is £12 million over budget and a year behind schedule. The findings come as part of a review initiated by the council leadership, which aims to address the issues that have plagued the project since its inception.

The investigation was launched by Cllr Paula Basnett, the newly appointed leader of Wirral Council, just a month into her tenure. The report scrutinised how council officers managed the project and whether they were adequately aware of the problems as they arose. It highlights a troubling start, with the project reportedly exceeding its budget by approximately £4 million before any work commenced.

The findings also point to several systemic issues within the council’s regeneration department. These include a lack of capacity to effectively manage the project, high staff turnover, and insufficient communication with both councillors and the public. The report indicates a breach of contract rules, which has raised concerns about governance and accountability.

In response to the report, Jason Gooding, who is currently acting as chief executive following the departure of Marcus Shaw on August 19, affirmed the council’s commitment to restoring public confidence. “My priority is to restore confidence in the Council’s ability to deliver meaningful regeneration that benefits the people of Wirral,” he stated. Gooding emphasized the need for “robust governance, realistic planning, and full accountability at every stage of delivery.”

Cllr Basnett echoed these sentiments, declaring the current state of affairs “completely unacceptable.” She stressed that residents deserve assurance that public funds are managed responsibly and transparently. “The coming weeks will mark a clear turning point for this Council,” she added, underscoring the need for ambitious yet well-executed regeneration efforts that genuinely benefit the community.

The internal audit report is set to be discussed at an audit committee meeting on September 2. Cllr Helen Cameron, chair of the committee, expressed the importance of addressing the findings to enhance oversight and governance processes within the council. “We now need to see a detailed action plan to ensure that the lessons learned will be embedded across all levels in the Council,” she commented.

As Wirral Council moves forward, it faces the challenge of not only rectifying the financial discrepancies but also rebuilding trust with the community. The failures outlined in the report have served as a wake-up call, prompting a renewed focus on effective management and accountability in future regeneration projects.