Peterborough City Council recommended to approve £3.5m works order for Lincoln Road scheme despite budget shortfall

Peterborough City Council’s cabinet members have been recommended to award a £3.5 million works order to the authority’s highways partner for the delivery of the Lincoln Road regeneration scheme.

The scheme, which is part of the council’s £22.9 million Towns Fund Programme, aims to create an attractive destination for residents, visitors and shoppers as well as encourage more people in the area to walk and cycle.

It will include new widened pavements on either side of the road, a new pedestrian crossing at the Lincoln Road/Alma Road junction and new electric vehicle charging points, as well as bins, cycle parking and benches.

The Towns Fund will cover £2.5 million of the cost, while the remainder will be funded by a number of sources including a Department for Transport grant, Community Infrastructure Levy contributions and UK Shared Prosperity Funding.

According to a report to be put before cabinet on February 11, full construction costs are expected to be in the region of £3.3 million to £3.5 million while non-construction costs are estimated at £650,000.

The report highlights that there is an evident budget shortfall for the scheme, with total overspend estimated to be between £440,000 and £642,000.

It states that measures to address the shortfall are being “actively pursued”, including considering further grant funding from the Towns Fund.

The final cost of the scheme has not been confirmed, however, the council is looking to start construction as soon as it can.

The cabinet report states: “Licenses to carry out works on private property have been granted but will expire in December 2025. Therefore, construction needs to begin as soon as possible in order to prioritise these activities.

“For this reason approval is being sought for the works prior to the full delivery budget being confirmed. This will ensure that the council is able to maximise delivery time.”

The council considers the budget shortfall of up to £642,000 to be a “worst-case scenario” and is exploring all potential sources of additional funding.

Peterborough City Council’s cabinet will also be discussing the authority’s 2025/26 budget and medium term financial strategy at the meeting on February 11.