More than £53 million extra required to unlock thousands of new homes in south-west Rugby

The expected cost of infrastructure to enable 5,000 new homes in south-west Rugby has shot up by more than £53 million – almost half the original estimate – in two-and-a-half years.

The data has come to light in a report that will be considered by Rugby Borough Council’s cabinet, the panel of Conservative councillors in charge of major service areas, on Monday of next week (January 8).

It is an update to the existing South West Rugby Masterplan, which the council adopted in June 2021, a document that plugs into national and regional planning policies to help guide the delivery of the new homes.

Cost estimates for things like schools, health services, open space, sports pitches and highways are factored in as housing developers are responsible for making section 106 contributions, payments to help fund the essentials so that occupants can access public services.

The masterplan includes the caveat that the infrastructure required and its costs will be kept under review and the updated version includes some eye-watering increases.

The cost of a new secondary school has shot up from £25 million to £40 million, and now does not include catering for sixth form students, following “benchmarking against recent costing for a school in Warwick district”.

Two new primary schools are coming in at more than double the original cost – £14 million each, up from £6 million each – while there are more modest increases to the proposed funding of GP surgeries, St Cross hospital and open space and sports provision.

Cycling and public transport infrastructure and road improvements are funded by all local development but the overall costs have gone up by almost £20 million – more than a third – for a list of projects across the borough, many of which are based on estimates put forward by the highways authority, Warwickshire County Council.

The council’s report says the costs “have been affected by inflation”, adding that “there is now a greater level of understanding of the scope of some of the infrastructure items”.

The next step is for the cabinet to approve a public consultation on the changes. If they approve it as expected, the public will be able to have a say over a four-week period from Monday, January 15.