There are growing concerns that the government could cancel major plans for up to 1,500 new homes in Salford.
Construction work is due to start on the first phase of a £400m residential property scheme of almost 300 new homes in one of the most deprived parts of Salford later this month. But a local councillor has told the press that the chancellor George Osborne could scrap the rest of the scheme in this month's budget.
Speaking to M.E.N., John Warmisham, who represents Langworthy ward, said that he would be ‘absolutely mortified' if the government does decide to cancel the project to save money on private finance initiative (PFI) deals.
The Treasury has already instructed Salford council to seek alternative funding options for Pendleton PFI, amid concerns that the proposed contract, with the private SP+ consortium, does not offer value for money.
Salford is now looking at other ways to pay for the regeneration which - as well as building the 1,500 new homes - will include the refurbishment of 1,250 homes.
Funding for stage one of the development has already been secured through a grant from the Homes and Communities Agency (HCA) as well as the Together Housing Group housing association, which will pay for the construction of 293 homes near Cavell Way, South Clarendon and Athole Street with work scheduled to start on 20 March.
Of the 293 new homes to be developed, 110 will be affordable homes for rent with the remaining 183 going on sale.
Councillor Warmisham commented: "Who knows what they [the coalition government] are going to do, but I fear for the budget later this month. I would be absolutely mortified if it didn't go ahead because a lot of people have put in an awful lot of money and time planning the regeneration of Pendleton."