The major housing project at One Horton Heath, which was originally budgeted at £504 million, is now expected to exceed that amount by millions, raising concerns over efficiency and financial management.
The project, led by Eastleigh Borough Council, is facing significant cost overruns, including a power supply that will now cost £5.1 million, up from the £1.5 million originally planned. In addition, the cost for developing serviced land is forecast to reach £26 million.
Power Supply Costs Soar
The power supply budget had initially been set at £1.5 million, but a report by Sarah King, the deputy chief executive of the council, revealed that the power supply is now projected to cost £5.1 million.
The increase is due to the need for a larger capacity cable to be laid from Velmore to Bishopstoke, a route that spans approximately 11 km.
Originally, the plan was to run the cable over the main railway bridge in Eastleigh, but further investigations showed that there was not enough physical capacity for the cable to pass through, leading to the more expensive route.
Once the new cable is in place, the additional power required for the remaining works can be supplied to the site.
Delays and Additional Costs
Further complications have arisen with the discovery of a high-pressure gas main near a planned footpath to Hedge End Station. This has caused a six-week delay and an additional cost of £144,000 for the project.
Criticism of the Project
Paul Holmes, MP for Hamble Valley, has strongly criticized the project, calling it a “vanity project” that is unfairly burdening taxpayers. He stated, “My constituents are having to pay their share of £600 million of debt to build out this project that simply isn’t deliverable.”
Holmes also expressed concerns about the financial practices and management of the project, saying, “Repeatedly, auditors have been concerned about financial practices, management, deliverability, and a lack of political management by the Lib Dem administration. The government should investigate these audit reports and take appropriate action.”
Project Completion and Future Uncertainty
Once completed, the One Horton Heath development is expected to deliver around 2,500 homes. However, the first homes’ foundation stone was only laid in April 2023, eight years after the original plans were approved.
The housing plots are currently valued at £100,000 each, which is lower than the previously predicted value of £117,000, as highlighted in the recent report.
Additionally, key personnel involved in the project have since left, and several others have declined senior roles, adding to concerns about the project’s leadership and future prospects.
A Conservative Councillor’s Concerns
Steven Broomfield, Conservative councillor for Fair Oak and Horton Heath, described the scheme as “exceptional,” but criticized its execution. He said, “I am dumbfounded at how badly this project is being run.
I have nothing but respect for the staff working on One Horton Heath, but the hills they have had to climb have proved overwhelming.”
Broomfield expressed concern over the project’s future profitability, saying, “When this is all over, will it actually be profitable? The project has got worse and worse, but we cannot afford for it to fail. The Greeks had a word for it – hubris. That is why the council is doing this.”
Local Authority’s Response
Despite the ongoing issues, the Best Value Notice issued to the council in 2023, which highlighted the council’s debt being “45 times its spending power,” was not renewed earlier this year.
Two independent reviews have praised the local authority, calling it “well-run,” though concerns about the One Horton Heath project remain.
Cllr Keith House, leader of the council, was approached for a comment but has not responded yet.
