The Council’s decision of 2 February 2021 approved cancelling the SWTP and HTP schemes and outlined costs associated with the de-capitalisation of the projects. This decision report can be viewed using the following link:

http://councillors.herefordshire.gov.uk/documents/s50086609/Hereford%20Transport%20Strategy.pdf

Included in the de-capitalisation costs were estimates of remaining project costs for both schemes based on knowledge at that time and an approved the revenue budget for these costs. The estimates comprised:

SWTP - £50k
• Gain share contractual payment associated with works completed financial year 2018/19 £40k
• Outstanding compensation payments to landowners £10k

HTP - £350k
• Gain share contractual payment associated with works completed during 2018/19 and 2019/20 prior to decision to pause scheme £200k
• Removal of boreholes £140k
• Final payment on Peer Assessment commission £10k

SWTP
The BBLP contractual payment and land compensation costs have come in under the estimated budget, which leaves £43,206.17 available for reallocation within the project. This will fund final contractual legal fees associated with land acquisition that were not included within the February report. These costs have totaled £44,060.13 which exceeds the remaining budget.

Updated final SWTP project costs comprise:
• BBLP contractual payment for final costs associated with concluding contractual matters and final account £6,151.83
• Compensation payments which relate to landowner legal fees associated with the CPO £406.00
• Internal recharge for Property Services fees for managing compensation payments associated with land acquisition (CPO & SRO) £236.00
• Sharpe Pritchard legal fees for works associated with land acquisition (CPO & SRO) £37,512.40
• Associated interest and court fees following legal action instigated by Sharpe Pritchard in June 2021 £3,731.77
• Internal recharge of legal fees for support to concluding the Sharpe Pritchard contract £2,815.96

The total value of these costs is £50,853.96 which exceeds the estimated revenue budget set out in the February council decision by £853.96.

HTP
The BBLP gainshare and the final peer assessment costs have come in under the estimated budgets. This leaves £49k available for reallocation which will fund a legal cost of £1k which was not included within the February report and the £1k SWTP overspend detailed above. The remaining underspend will be allocated to the borehole removal and any associated compensation budget element in the event that these costs exceed the estimate.

Updated project costs comprise:
• BBLP gainshare contractual payment for works completed in previous financial years and final account £155,512.59
• Removal of boreholes and compensation payments £15,020.70
• Final payment of costs for works associated with the Peer Assessment £2,079.88
• Legal invoice £1,000.00

These costs total £173,613.17 and have been paid from the project revenue budget approved within the February Council decision report.