Multi-million pound town centre regeneration project in Luton delayed by health and safety regulator

The Stage flagship mixed-use development on the former Bute Street shoppers car park in Church Street includes residential properties, a multi-purpose performance and community area, a food court and commercial space.

LBC’s director of property and infrastructure Roger Kirk told the local authority’s scrutiny finance review group: “The project is underpinned by £20m of levelling up funding.

“This project features three residential towers, the substantial multi-purpose hub and public realm improvements,” he explained. “The housing design needs approval from the building safety regulator before work can begin.

“Our application to the regulator was submitted in July 2024 and should have been reviewed by November. Owing to a lack of resources at the building safety regulatory body, it remains undetermined.

“The latest position is a request from the regulator for a third extension of time until July 11. The regulatory organisation has been unresponsive, despite lobbying at ministerial and senior civil servant level.

“It finally agreed to meet our design team last week and has tabled several requests for extra information. Based on that meeting, we’re fairly confident of a positive outcome this summer.

“This time extension will clearly impact on the programme and on the budget. But the project team has put in place contingencies in mitigation.

“There’s no current danger of us having to cancel any other projects to fund this one,” he added. “One of the upsides of the delay is that residential sale prices continue to rise.

“We’ve a robust cost plan, which means the negative impact will hopefully not be material. On potential preparatory work, the regulations are quite clear. Until you receive clearance, you can’t start anything.”

Asked whether contractors could charge the council extra fees, he replied: “We’ve been burning contingency at the rate of around £100,000 per month, but that’s within an allowance.

“With the extended time, we’ll have to revalidate the cost plan. Our best guess at present is that the negative impact, in terms of the capital project, is less than £1m.

“As things stand, there’s no need for further subsidy from the council. There are substantial contingencies within the project. It’s partially offset by forecast increased income from residential sales.”

Liberal Democrat Barnfield councillor David Franks recalled requesting a letter be sent to the LBC chief executive and council leader “urging pressure be put on the government by Luton’s three Parliamentarians and the Local Government Association to do something about these horrendous delays, which are affecting other local authorities” as well.

“I’d have thought at least an acknowledgement would have been received, if not a detailed explanation of what they were doing about it,” he said.

Mr Kirk confirmed the town’s MPs and the former LBC chief executive were sent replies by the Minister for State and a senior civil servant suggesting they were “very busy and very sorry”.

Councillor Franks, who chairs the review group, acknowledged this, saying: “Yes, but ‘I’m very sorry’ doesn’t pay the bills, does it?”