Paul Holmes, the Member of Parliament for Hamble Valley, has written to Deputy Prime Minister Angela Rayner expressing serious concerns about the management of the One Horton Heath development project, following the revelation that the budget for the scheme has now exceeded £500 million.
The ambitious development was initially approved in 2017 with a budget of £142 million, but costs have spiraled despite no homes being built yet.
Budget Overrun and Financial Management Concerns
In his letter, Mr. Holmes highlighted the growing financial issues surrounding the eight-year scheme, which is set to deliver 2,500 homes and a school in Fair Oak.
He criticized the local council for its poor financial management, pointing out that the costs have ballooned from an initial £142 million to more than £500 million without any homes being completed.
He also raised concerns over the council’s “questionable financial governance” and a “consistent lack of transparency” since the project began.
Mr. Holmes stated, “Considering the out-of-control debt levels which the Council has recorded, which I know your department is aware of and have been monitoring, I believe that these issues merit immediate ministerial scrutiny.”
He called for an independent investigation into the financial and operational management of the One Horton Heath project.
Rising Costs and Lack of Progress
The development’s ballooning budget and slow progress have been ongoing issues. A recent report on the project suggested that the scheme needs to move faster, as increased borrowing costs and slow income could make the business plan “unviable.”
Sarah King, the deputy chief executive of the council, also raised concerns about the efficiency of the project and questioned the overall spending.
Mr. Holmes noted that the council is due to consider a further £18.3 million increase to the budget, despite the fact that no homes have yet been built.
The financial return also appears negligible, with projections suggesting that the development will only generate £194,000 in annual rental income by 2028. This equates to a return of just 0.04% on the £500 million public expenditure.
Call for Independent Investigation and Government Intervention
In his letter to Angela Rayner, Mr. Holmes urged the government to commission an independent investigation into the project’s financial and operational management.
He also called for an intervention to halt further borrowing or expenditure on the project until key questions about deliverability, financial return, and public accountability have been addressed.
He went on to say, “The previous best value notice, which was withdrawn, by this government requested a reduction in debt, so this is a blatant breach of that advice.”
As the One Horton Heath project continues to face mounting financial challenges, the call for government intervention grows louder.
Paul Holmes MP’s letter to Deputy Prime Minister Angela Rayner highlights concerns over spiraling costs, poor financial management, and a lack of progress.
With the project now at risk of becoming financially unviable, many are calling for a closer look into how it is being managed and whether it can still deliver on its ambitious goals.
