Guildford Borough Council is making significant progress on Weyside Urban Village (WUV), its flagship regeneration project that will deliver around 1,650 high-quality homes and vital infrastructure to meet the borough’s growing housing needs.

The development financial review and financial mitigation options for the Weyside Urban Village scheme were discussed at the borough’s Full Council meeting last night (29 July). The two reports detail the significant milestones that have already been achieved and the mitigation options being explored to reduce the forecast financial shortfall on the WUV project.

Progress to date

The Council is unlocking previously used land for development through upfront investment and delivery of essential infrastructure. Works to date include:

• Progress on the new Thames Water sewage treatment works (completion expected in 2027)
• Completion of UK Power Networks energy infrastructure for most of the site
• Relocation and expansion of allotments
• Appointment of contractors for key infrastructure works, including highway improvements like the Toucan Crossing on Woking Road
• Development of a new nature reserve at Burpham Court Farm, which is almost equal in size to 60 football pitches
• Detailed plans for new high quality and energy-efficient housing approved
• Completion of initial groundworks for the new council depot

Robust financial mitigation strategy

Councillors also heard how the project has faced financial pressures due to global economic conditions, including rising borrowing costs, inflation, and a challenging housing market. Construction costs have surged, driven by slow recovery after COVID, the war in Ukraine, and labour shortages.

In response, the Council has developed a robust mitigation strategy to manage the projected financial shortfall while protecting essential council services.

Recommendations approved

Noting the remaining forecast financial shortfall and ongoing work to take advantage of commercial opportunities linked to the Weyside Urban Village scheme, Full Council approved the treasury management strategy to:

• Use £20 million in capital receipts and savings from the asset disposal programme to support the WUV scheme.
• Fund £40 million for the new council depot through long-term borrowing as part of the corporate programme. Savings from a new leisure management contract will help to cover the interest payments.

Deputy Leader and Lead Councillor for Economy and Place, Cllr Tom Hunt, said: “We’re prudently taking action now to minimise any potential impact of the Weyside Urban Village scheme and ensure that this key site delivers much-needed housing, infrastructure and jobs for our borough.”

Lead Councillor for Finance, Cllr Richard Lucas added: “The measures we’ve approved deal with the current situation we’re facing. We’ve already raised £9m from the asset disposal programme. The measures agreed by Full Council will significantly reduce the projected financial shortfall and make debt repayment manageable.

“Although there are still ongoing risks associated with the Weyside Urban Village scheme, these will reduce as we move forward with the project. We will, of course, continue to monitor the situation very closely.”