News background: Council insists development projects including Halifax Rail Station Gateway scheme and new pool are 'paused not abandoned'.

Rising project costs driven by inflation and national financial volatility means a multi-million pound leisure centre and new swimming pool development planned in Halifax has been put on ice.

Two more major projects, involving transport scheme partnerships with West Yorkshire Combined Authority (WYCA), are also almost certain to be placed on hold in the coming weeks.

Building a new major leisure centre for the borough on the site of the one currently being demolished at North Bridge, Halifax, which would include Calderdale’s major swimming pool, is the major casualty.

Other projects impacted include the Halifax Rail Station Gateway scheme, including new access bridge, and cross-boundary cycling, walking and public realm between Salterhebble, Halifax, and Ainley Top aspects of the A629 scheme.

But councillors have stressed the projects are being paused, not abandoned.

Calderdale Council Deputy Leader, Coun Jane Scullion, said Cabinet wanted to be open, upfront and honest with people about the situation.

“While we think the people deserve really good facilities, we cannot endanger the council’s budget – we promised the people of Calderdale we would be prudent.

“We don’t want to give the impression we are just pausing for a few months and everything will be hunky dory – I can’t imagine the economic volatility will disappear in 12 months.

“We will get there, it is what Calderdale deserves, but it won’t be in the time period we thought it would be,” she said.

The sports centre and new pool scheme, on the site of the old North Bridge Leisure Centre, will be on ice for at least a year, estimate senior councillors, with inflation pushing up costs by a further £4 million over recent weeks.

Energy costs, and possibility the cost of living crisis will affect numbers using the new centre if it opened sooner, also informed the decision.

Coun Scullion said inflationary costs, particularly for construction, hitting supply chains including steel specialists, had been rising for a while and had already pushed the cost of the new leisure centre, first mooted around 2015, up from £28 million to around £31 million, and the latest £4 million projected increase would push that further to £35 million.

Such is the volatility of the financial situation nationally, worsened by the Government’s recent mini-budget, there is no guarantee costs would remain even at that level and, coupled with budget pressures locally, the administration reluctantly agreed it could not proceed at the moment, she said.

A decision had to be taken because a new contractor is in place – ISG – who would need to schedule work.

Coun Scullion (Lab, Luddenden Foot) said: “We are very, very clear that we could not write a blank cheque because of interest rates, and the chaos and volatility of the financial system at the moment.”

Pressures people were experiencing in their own lives were also affecting councils, and not just Calderdale.

“People in Calderdale know what is happening to their mortgages, their petrol bills, they get it.

“We have a responsibility that our budget balances.”

In context, Coun Scullion said the council had a reputation of not over-promising and under-delivering, with successful schemes in recent years including Calderdale Library, the Piece Hall, and the recent Northgate House redevelopment in Halifax as well as the town’s new look bus station, which is underway.

“We have a really good record of delivery but in this case, we have to put things on hold and be fiscally responsible,” she said.

Cabinet member for Public Services and Communities, Coun Jenny Lynn (Lab, Park) said it was very disappointing the project could not proceed at this point.

Putting it on pause gave the council some breathing space.

“It would be irresponsible for us to go ahead at this time but we remain committed to looking at the project, reviewing it and hopefully being able to get it on track.

“At the moment we have reluctantly come to the conclusion it is not affordable in terms of additional borrowing we would have to take on,” said Coun Lynn.

She said staff employed at North Bridge had been deployed to other Calderdale leisure centres which were, for example, taking on the school swimming lessons, and some had taken early retirement.

If the council had decided to press on and borrow the additional £4 million now, money to cover the extra borrowing and interest to service it would have to come from the revenue budget which financed the daily services people relied on, said Coun Lynn.

Coun Scullion also warned councillors of all parties would face difficult decisions early in the new year when the council has to set next year’s budget.

She said against a background of a decade of austerity cuts and with 70 per cent of the council’s revenue budget being spent on statutory adults and children’s social care services, the council was facing making savings on a scale not done for some years, projected to be £10.2 million next year, a further £12.9 million in 2024-25 and another £18 million a year later.

Coun Scullion said the Local Government Association Chair – Conservative James Jamieson – has this month written of his extreme concern about the finances of local government up and down the country.

In the short term a lot will depend on the Government’s financial statement this month, said Coun Scullion.

Councils should learn from Government what their final financial settlements will be for at least next year.

WYCA will consider the proposals for projects officers believe it will have to pause over the next few weeks with councillors expected to give final approval in December.

The two Calderdale projects are among those likely to be paused – it would be surprising if the proposals are not ratified.

Officers believe the approach taken on selecting which West Yorkshire programme elements across the region need to be put on ice has been “pragmatic and practical.”

Work will continue to take schemes to what would be next decision points.