To present an update on the programme delivery so far, to highlight the elements of the project that have exceeded their forecast costs, and to set out the plan for delivery of the remaining projects in the programme.

This report will also detail the residual land acquisition costs and liabilities that will need to be met from the existing capital budget.

That:

a)    Cabinet note that the current capital programme allocation of £40.651 million for the Hereford City Centre Transport Package (HCCTP) is now insufficient to complete remaining undelivered projects (transport hub and public realm) in the programme without additional funding

b)    The HCCTP programme be deconstructed into individual projects to enable clearer reporting on each project

c)    That the Chief Executive commissions a South West Audit Partnership (SWAP) audit of the expenditure on the HCCTP programme to understand the cost escalation

d)    The remaining programme funding be allocated to the development of the transport hub project design and consultation and the Interim Director for Economy and Place (in consultation with the Section 151 officer and the Cabinet Member for Infrastructure and Transport)  is authorised to progress this design and consultation to enable cost certainty to be established and further delivery funding sought and a full climate and ecology impact assessment included at the design stage; and

e)    The public realm projects in the HCCTP be considered in a wider assessment of public realm and sustainable connectivity in the City and delivered as individual projects under the wider strategy ensuring the LEP objectives are delivered. The Interim Director for Economy and Place (in consultation with the Section 151 officer and the Cabinet Member for Infrastructure and Transport)  is authorised to progress this work

1.            Not to proceed with completion of the remaining projects. This is not recommended as it would result in some package objectives and targets as set out in the 2015 Marches Local Enterprise Partnership (LEP) business case not being achieved. This would also contravene the terms of the funding agreement, and would not be consistent with the councils adopted delivery plan.

2.            Not review the previous activity within the HCCTP budget spend. This is not recommended as there is reassurance and accountability needed for future budget control and effective project management.