Flood defences set to burst the bank for city

Published on Thursday 25 June 2009 10:08

FLOOD defence work on the Water of Leith is facing a £22 million funding shortfall as a result of an ongoing wrangle between council chiefs and the Scottish Government.

The improvements to help safeguard thousands of vulnerable homes and businesses, were first proposed in 2000 but have been hit by a series of delays.

Despite being allocated 126 million by the Scottish Government for flood prevention measures across the city, it is understood that the city council needs a further 22 million for a year's worth of extra work on the Water of Leith, in the light of design changes brought in after a 2004 public inquiry.

The constraints have led the council to re-tender for smaller contracts and will now see the project completed in stages. The council today said it was continuing to meet with the Government to discuss funding.

The Water of Leith scheme – due for completion in 2012 – was drawn up after major floods in April 2000, which caused an estimated 25m worth of damage to around 600 homes and offices.

The cost of the project was originally estimated at 9.5m in 2001, but it had more than doubled to 20.1m by 2003 and again to 47m by 2007, when ministers endorsed the plan. The price then climbed to 53.9m by April last year and went up a further 1.4m to 55.3m earlier this year.

Edinburgh North and Leith MSP Malcolm Chisholm said he had raised the issue in the Scottish Parliament and said the Government should be made to "stump up" the cash because the delays had been outwith the council's control.

MSP Sarah Boyack said it was unacceptable that the Government should expect the council to foot the remainder of the bill.

Councillor Mark McInnes, the city's Tory environment spokesman, said: "This has been dragging on a very long time and it's another lesson for the council about how to manage these major projects.

"They have failed to predict the contingencies that might be needed, despite assurances that the funding was in place."

The council said a report detailing funding options would be brought to the next environment committee meeting next month.

A Scottish Government spokeswoman said decisions on funding beyond 2011 would be considered in the next spending review: "The Scottish Government took into account the Edinburgh City Council's likely expenditure on the Water of Leith scheme over the period 2008-11 when setting the council's general capital grant.

"Total funding provided by the Scottish Government for flood schemes over the period 2008-11 is 126 million – an enormous 41 per cent increase compared to the previous three years."