Harrogate’s £11.2m Station Gateway could be scaled back if costs rise

Harrogate’s £11.2m Station Gateway scheme could be scaled back if building costs rise and it goes over budget, according to a report.

Councillors on North Yorkshire Council’s Conservative executive will meet next Tuesday when they are expected to approve sending a full business case to West Yorkshire Combined Authority, which won the funding from central government.

A report has been prepared for councillors that outlines the background for the scheme, the environmental and business arguments for it going ahead as well as details of the three rounds of public consultation that divided the town.

It’s been in development for three years to make the town centre more accessible to cyclists and pedestrians and proposals include making Station Parade single-lane to add cycle and bus lanes and part-pedestrianising James Street.

This is how James Street could look as part of the Harrogate Gateway project.

When the project was first announced it had a budget of £7.9m but the cost has already increased by almost 30% before a shovel has gone into the ground.

Over the last couple of years, the price of building materials has risen considerably and inflation remains high which has put pressure on projects across the country.

Galliford Try has already been working with the council to draw up designs and has helped plan the construction phase.

A firm is yet to appointed to build the scheme but the report notes that any cost increases will be made at the council’s risk.

The report, written by Karl Battersby, corporate director of environment at NYC, said if the budget rises further then the council would first look to cut costs by reducing its scope or by looking at what materials are used.

He said:

“Should the final cost forecast exceed the budget allocations, which includes risk and contingency allowances, budget savings would be identified in the first instance, both in terms of scope and extent of materials to ensure the project is contained within the agreed budget allocation.”

The Department for Transport says funding for the project should be spent before March 2024 but the report says this deadline represents a “significant risk” to the council as it is “no longer deliverable” within this timeframe. It says discussions are ongoing with the government over extending the deadline.

In a statement, North Yorkshire Council’s Conservative executive member for highways and transport, Cllr Keane Duncan, said:

“The Harrogate scheme represents a landmark investment, aiming to rejuvenate the town centre, support businesses and encourage people to travel more sustainably.

“The recent area committee vote showed significant, cross-party support for the scheme from local councillors. The majority recognised the importance of securing this £11.2 million investment and the transformative impact the project could have.

“We have responded to councillors’ feedback by pledging to review the Odeon roundabout design prior to final submission and to consider key junctions outside of the scope of the Gateway project (Ripon Road/King’s Road/Cheltenham Parade) to further limit congestion.

“The full business case submission would represent a huge step forward for the scheme, enabling us to stay on track to start work in winter 2023.

“Input and oversight provided by local councillors and engagement with town centre businesses will be incredibly valuable as the project proceeds, and we will soon provide more detailed plans for this.”

By Thomas Barrett, Local Democracy Reporter