Councillor Jefferies explained that in the absence of Councillor B Maney, the Interim Director of Place will present the report.

The Interim Director of Place confirmed that this is one of three reports tonight which the BVI highlighted as lacking in good project management. The projects are subject to review and updates and recommendations will be provided as to a way forward.

All three reports have been considered by the Planning, Transport and Regeneration Overview and Scrutiny Committee who unanimously supported the recommendations and welcomed the clarity and openness on the reporting of these projects now.

The review of Gray’s Underpass started with understanding the true cost of it.The original budget of £27.4m was approved by Cabinet in 2017.  Cabinet approved a further increase in the forecasted budget to £37.3m in 2021. The current budget forecast is £46mbased on the latest costings from Network Rail (GRIP 4) design. Forecasted cost estimates have consistently increased as the detailed design for the Underpass have been developed and greater certainty around the implementation impacts on the operational railway. This has resulted in a significantly longer build programme and more expensive technical solutions required to deal with utility diversions, track possessions and changes required for planning.  Whilst inflation has been a factor it is clear there was a lack of understanding of the project from the outset. The review acknowledged that the current level crossing is a safety risk and whilst there have been no fatalities the number of ‘near misses’ has increased. The review recommends that an alternative design and delivery approach is examined based on the development of the Station Quarter concept. This would seek to deliver the new pedestrian crossing over the railway, potentially as part of a new station and mixed-use residential development. It is proposed that Cabinet approve the adoption of this approach and instruct officers to examine the potential for the establishment of a strategic partnership with Network Rail and others, including the drafting of operational principles covering possible design options, partnership arrangements for delivery and roles and responsibilities. A further report on development options, including funding options will be brought back to Cabinet for consideration before the SELEP (Southeast Local Enterprise Partnership) Accountability Board meeting in February 2024.

Councillor Jefferies commented that he agreed with the report and the BVI made it clear that the Council messed up on these things and need to get it right and this report is a step in the right direction. Councillor Jefferies also noted the Planning, Transport and Regeneration Overview and Scrutiny Committees comments and actions requested of officers such as a detailed breakdown of current costs and for the Committee to be updated with regular reports. Councillor Jefferies confirmed he wholeheartedly supported these requests.

Councillor Coxshall echoed Councillor Jefferies comments and agreed with regular reports coming back to Cabinet and Overview and Scrutiny. Councillor Coxshall highlighted that the Council should also be consulting with other partners such as Morrisons and others in the High Street. All stakeholders want to see a regeneration in the High Street.

Councillor Carter stated that Thurrock has always had a lot of ambition to regenerate, it is the follow through that has been the problem. He welcomed the regular reports and the opportunity to look at what went wrong. He stressed that Thurrock still has a lot of ambition and he welcomed it.

Councillor D Arnold commented that whilst it was positive that the Planning, Transport and Regeneration Overview and Scrutiny Committee unanimously supported the recommendations, the minutes of the meeting on the 28 September 2023 were only received today and she would have liked for Cabinet to have had the opportunity to look at them in advance of the meeting. Councillor D Arnold also raised that these are large investments and concern a large amount of money and she queried what actions and learning are being taken forward so the Council knows when to stop.

The Interim Director of Place agreed it was a valid point and confirmed that at this stage they are looking at what the delivery options are and will then be bringing it back to Cabinet. Historically with these projects it was press go and keep on going until somebody asked a question. A report will be brought back through scrutiny and Cabinet at each point a decision is required. It is clear the Council needs to have ambition and vision but it is not likely to be the delivery partner. Network Rail are the right people to deliver this. The Council needs to make sure in any project going forward that the balance of cost is better, the previous proposal placed a small burden on the Rail Authority and the bulk on the Council.

Councillor Johnson stated that all partners need to be brought in to work on this. In the past we have been lenient to partners and they need to know their level of responsibility is just as high as ours

RESOLVED:

CABINET

1.1          Agree to cease further development work on the Underpass scheme and withdraw the planning application.

1.2          Delegate to the Director of Place, in consultation with the Portfolio Holder for Regeneration, Strategic Planning and External Relationships and Commissioners  authority to implement the development strategy set out in Paragraphs 4.1- 4.3 and to assess operational principles  covering  a potential Station Quarter development partnership with Network Rail and other strategic partners.

Reason for the decision: As outlined in the report

This decision is subject to call-in