Questions over £307m housing regeneration gap

Birmingham City Council released an image visualising what Druids Heath could look like after its regeneration

Council chiefs have been questioned over a £307m financial gap for a scheme to regenerate an estate which featured in a BBC TV drama.

Birmingham City Council outlined plans in May in to demolish 1,864 homes and provide 3,267 in their place in Druids Heath.

But according to a report, the "viability gap" for the regeneration scheme totalled £307m over the duration of the project.

The estate was used as a backdrop for the Steven Knight drama This Town, which aired earlier this year.

The report stated it was "usual" to have such a shortfall at the start of a regeneration project, but "there must be transparency around any financial gap and how it might be filled".

Report author, interim programme director Kerry Scott, wrote "positive conversations" had taken place with Homes England and the West Midlands Combined Authority.

"There have been constructive conversations about how government support can be used in the future to support the project," the report added.

Tower blocks in Druids Heath are set to be demolished as part of regeneration plans

The financial situation was also raised at a recent Homes Scrutiny Committee meeting as councillors discussed the latest updates.

Committee chair, councillor Jamie Tennant, asked whether there was a risk "that money doesn't come".

Paul Langford, strategic director for city housing, acknowledged the multi-million pound financial gap was a "big number" but reiterated it was not unusual when looking "over a 15, 20, 25 year period".

"It doesn’t mean we're short of that cash on day one," he added.

The scheme is set to deliver 51% affordable housing and would not displace or make existing tenants homeless, the report said.

Consultation feedback is due to be delivered to the community next month.

This news was gathered by the Local Democracy Reporting Service which covers councils and other public service organisations.