Birmingham puts new builds on hold

Posted on April 1st, by editor in Caring Times. No Comments

Plunging property prices due to the recession have had a devastating effect on Birmingham City Council’s plans to build a network of care centres.

A total of 10 centres had been planned, funded by the sale of 29 care homes owned by the council and the sale of the sites to developers.

However, according to the council, the amount that can now be raised by disposing of the land has collapsed from £22.3 million to just £4 million.

This means that only the four centres already opened will be operational and plans for the other six centres have been put on hold.

The decision to halt the building will mean the city will also lose a Private Finance Initiative grant that would have paid for a portion of the building work.

The council has indicated that it still intends to continue with its plan to close   most of its council owned homes, arguing that this is still necessary due to the   high cost of modernisation and refurbishment and the decline i

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