Coventry Conservatives are calling on the Council to provide urgent reassurance that no further council taxpayer money will be needed to bail-out the IKEA redevelopment. It follows the collapse of construction firm ISG who were appointed to deliver the ‘Cultural Gateway’ project.
The demise of ISG raises several questions about the future of the project, and whether the Council is covered by any guarantees on what it has already spent. At this time, it’s also not clear whether the Council are looking at alternative options for the site or want to press ahead with the multi-million-pound scheme.
The collapse of ISG, who were the sole contractors considered, raises concerns about the extent of due diligence undertaken by the Council. Although seven other contractors initially expressed interest, they all withdrew leaving ISG as the only contractor willing to develop the site. It also raises concerns that another contractor might not be found to take on the scheme - especially within existing budgets.
The Council purchased the site and building in February 2021 following IKEA’s closure of the store. The Cultural Gateway scheme would bring together multiple partners, including Arts Council England, British Council, Culture Coventry Trust and Coventry University and create a collections centre of ‘national significance’. The scheme was scheduled for completion by August 2025.
Although Conservatives initially backed the scheme, they voted against the most recent funding package in March 2024 as concerns about soaring costs and viability began to emerge. They questioned whether it was appropriate borrow millions to fund an untested scheme at a time when basic services, like street lighting, were being cut. They also condemned Labour Councillors for voting to conceal the full costs from the public.
A motion, proposed by Shadow Cabinet Member for Finance and Deputy Group Leader, Cllr Peter Male will attempt to find answers to these questions. It will be seconded by Group Leader Cllr Gary Ridley. The motion urges the Council to provide immediate clarity on the situation and explore all available options to protect the city’s finances.
Speaking on the motion, Cllr Peter Male said: “The people of Coventry must not be allowed to bear the financial brunt of this unfortunate situation. We are seeking clarity from the Council on their next steps and seeking assurances that no additional taxpayer funds will be diverted to cover the impact of ISG’s collapse. There also needs to be an honest examination of the tender process and the due diligence the authority undertook. The Council must learn from this fiasco if we are to move forwards.”
Cllr Gary Ridley added: “We need a clear plan in place to mitigate the fallout from the failure of ISG, and we need it quickly. We’re repeatedly told that the Council is facing a black hole of £7m this year alone, we’re facing a wave of library closures, and streetlights have been switched off. So how come there is always enough money for schemes like these? It’s time for the Council to come clean and tell the public how much this flatpack fantasy has really cost them while they’ve been busy slashing services.”
The motion will be considered on Tuesday 15th October 2024 at a meeting of all councillors (‘Full Council’) at the Council House in Coventry. You can visit: https://coventry.public-i.tv/core/portal/home to watch live or recorded streaming of the meeting.
