IN yet another huge embarrassment for the ruling Conservative administration on Thurrock Council, another of its showcase policies has been scrapped – it has been announced this evening (Friday, 23 December).

For several years the Conservative planned to redevelop half of its civic offices into a commercial property development – which was intended to fund the multi-million pound building of a new extension to the Grays town centre building – now called the Town Hall.

Last year the Tories were forced to concede the plan was not viable. Housing portfolio holder Cllr Luke Spillman then championed a new project, to demolish the office block building – known as CO1 - and build new social housing flats on the site.

In October 2021 he trashed the commercial development plans and said he would instead move to built 86 council homes. That number later reduced to 82.

He said: "'The previous plan isn't good enough for Thurrock so I trashed it."

Both schemes were rubbished by the opposition, with the extension dubbed a 'vanity project', while locally the plans for the new council flats were ridiculed and called Spillman's folly by some councillors – including members of his own group.

To say Cllr Spillman was upbeat about his grand idea would be an understatement. He said: "I am delighted to be able to announce that a viable financial model has been built that will allow the council to progress our plan to build social homes on the site of C01. These will be high specification council homes, built for Thurrock people."

"Thurrock Council's Conservative administration has great ambitions for the provision of new council housing in Thurrock. The Leader of the Council and Cabinet have set me the challenge to deliver upon these ambitions. It is a privilege to be given the chance to lead on this project."

Only a couple of weeks ago one of his colleagues, Cllr Shane Ralph, called for the project to be abandoned and the building used instead as a new medical centre.

Cllr Spillman has stuck to his guns up until today and has criticised those, including the media, who questioned the viability of the scheme.

In March this year Cllr Spillman gave details of his project. That prompted scathing criticism from the Labour group, whose leader Cllr John Kent said: "This whole shameful project needs to be the subject of independent scrutiny before more millions are wasted on a scheme that is untenable, undeliverable and unnecessary."

The CO1 building. What will happen now to Cllr Luke Spillman's folly?

This evening, Cllr Spillman has been forced to admit it will not happen – but has not linked the failure of the project to his group's failed 'borrow to invest' strategy that has driven the authority into bankruptcy owing hundred of millions of pounds – but instead blames 'global factors' including inflation, energy costs and the war in Ukraine.

A statement released this evening by the Conservative group says: "Thurrock's Cabinet Member for Housing has announced a halt to current development plans for CO1.

"Re-evaluation of the project projected that interest rate rises would add £11,388,528 to the cost of the project. Understandably this increase in cost leaves the project no longer feasible."  

Cllr Luke Spillman.

The release went on to quote Cllr Spillman saying: "This is disappointing news however the global factors that have resulted in the Bank of England base rate of interest increasing from 0.25% to 3.5% have caused the scheme's borrowing rate to increase from 2.8% to 5%.

"We'll be going back to the drawing board in the new year and will evaluate all alternative options and bring new proposals forward in due course.

"This is an unfortunate example of the impact inflation, energy costs and the war in Ukraine are having on local authority development projects across the country." 

Meanwhile the cost of the new 'Town Hall', a building that has been dogged with planning and design problems, system failures and leaks remains unknown.

Conservative and former council CEO Lyn Carpenter have been insistent the total cost of the project would not exceed £10 million.

It now appears likely the cost will be at least double that – and possibly a lot more! But the council refuses to put a cost on the project, despite many requests from the media, Thurrock residents and opposition councillors.

When it is finally revealed what it cost it will be another stain on the integrity, ability and honesty of the council and the Conservative administration – to add to the embarrassment of tonight's latest news!

The cost will now also have to be factored in of two expensive development and design projects which have come to nothing.