A new primary school has gone over budget by nearly £300,000 because of the fallout from Brexit, a senior councillor has claimed.
Work on Dundee’s new £17 million North East primary school campus is due to begin next month but the cost of the project is set to be higher than initially anticipated.
A report to go before the council’s city development committee next week claims this is due in part to the “weaker pound” and the increased cost of importing items.
City development convener Will Dawson said: “It would appear to be one of the fallouts from the Brexit process.
“Whereas before we would have seen much more favourable rates for work, the trend is now that the prices have increased due to the fall of the pound.
“I can only see this uncertainty with regards to the currency deepening now that the UK Government has signalled the Article 50 process. Considering the issues surrounding Brexit, it would be good if the Government could be clearer on the process and the implications, as I think this would be beneficial not only to local government but to the private sector as costs will rise due to this.”
Next week, councillors will be asked to approve the tender for the work submitted by Wilmott Dixon Construction.
The council’s city development committee will learn the start date for the project is next month, with completion expected in June next year. The school is due to open for the autumn term in 2018.
In his report to go to the committee, director of city development Mike Galloway said the tender going before councillors was higher than previously anticipated.
He said: “It should be noted that the total projected cost of the North East school campus exceeds the current provision of £16.9 million contained in the capital plan by £299,897.”
Mr Galloway said there were two main reasons for this — inflation and the increased cost of importing manufactured component parts and materials from mainland Europe as a consequence of the weaker pound.
Longhaugh, St Luke’s & St Matthew’s and St Vincent’s primary schools will all move into the new campus, along with the Longhaugh and St Vincent’s nurseries. It will accommodate nearly 1,000 youngsters.