A key council officer has claimed “underspend is worse than overspend” when challenged on Southwark Council’s history of exceeding major works budgets.
The council officer was responding to Cllr Victor Chamberlain, who claimed 55 major works projects had gone over budget since 2016.
Their exchange took place moments after Southwark Council confirmed audits into major works on the Devon Mansions and Canada estates, which went £4.2 million and £1.7 million over budget respectively.
Speaking at the Overview and Scrutiny Committee meeting on Monday, March 4, he said overspending didn’t necessarily mean a project had been mismanaged.
“There seems to be a context within the scrutiny that an overspend is a bad thing; it’s ‘mismanagement’, it’s ‘poor management’. It’s not always the case,” he said.
“In fact, sometimes, for me, underspend is worse than overspend because what an underspend means is: ‘have we listened enough to our residents?’”
He added that “the overspend sometimes often relates to things that are additional and positive”.
The officer cited the £1.1 million spent on the Canada Estate’s new windows as an example, which he said had followed “extensive consultation with the residents”.
Residents have consistently argued they weren’t properly consulted on the new windows which don’t allow balcony access and reportedly make an “unbearable whistling” sound.
Cllr Cryan has since said she was “misled” by a council officer, who incorrectly told her designs allowing balcony access would breach fire regulations – although this is thought to be unconnected to the committee discussion.
Following the meeting, Canada Estate resident Michael Robertson, whose FOIs about major works have been repeatedly blocked by the council, told the News Hodgson’s comments were “frightening”.
The leaseholder, who says he’s contributed £18,000 to major works on his estate, said: “Frightening to hear a council officer, custodian of Housing Revenue Account and leaseholder finances, say they are concerned when they have an underspend,” he said.
“If the identified scope of works is correct, and the tender process clean, the books should balance.”
Cllr Victor Chamberlain claimed the stats regarding historic overspending were sent to him by Southwark Council’s Strategic Director.
The Southwark Lib Dem leader said the stats also showed there had been 1,600 major works complaints since April 2016 and five projects had overspent by more than £1 million.
The council officer said the pandemic had been a contributing factor and that complaints sometimes related to minor things like residents wanting a new kitchen fitted.
Southwark Council has been approached for comment.