Tendring Council's Conservative group is concerned over council leaders “losing control” over finances for a homeless accommodation project.
Plans to convert existing two-storey accommodation in Walton into flats for the homeless have increased drastically in cost.
In 2023, the council started work on transforming Spendells House, in Naze Park Road, into 32 flats, with a £1.47million price-tag.
Cabinet papers published in May have revealed the original budget for the project increased to £2.337million, of which £860,000 needs to be taken from council reserves - more than 25 per cent of the council’s housing revenue reserve - to keep the project on track.
Following the Conservatives' concerns, council top brass have ordered that a formal review would be undertaken to clarify how the issue arose.
Council housing and planning boss Andy Baker insisted lessons have been learned, but added that the council remains committed to the overall scheme.
“We recognise that the cost of this project has increased substantially and that works have been carried out without the proper authorisation.
“But we have reiterated our support for the project, the fundamental reasons for which remain - to provide much-needed temporary accommodation for homeless people and families in need.
“The financial cost of emergency hotel provision to meet the escalating demand to provide temporary housing is unaffordable in the long term, while such accommodation itself is unsuitable for family life.
“Having got to this point, the best value option from here is to continue with the project.
“Alongside accommodating homeless people in more suitable facilities and reusing a redundant building, it will also save taxpayers’ money in the long run.”
The cabinet also said managers are being reminded of the internal control arrangements in place and requested that cabinet member for housing and planning Mr Baker provides corporate oversight of the completion of the project within the approvals in place.
Conservative group leader Paul Honeywood remains critical.
He said: “Clearly we need answers, but we also need to see measures put in place to ensure taxpayers' money cannot be spent in this way in future.
"Simply saying lessons have been learned is not enough."
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