Monifieth High: Could new school be canned after cost rockets to £66.5 million?

Angus Council is facing a £10.5m financial black hole to build the new secondary they set aside £50m for back in 2020.

By Graham Brown

April 28 2023, 5:55am

How the new Monifieth High School will look. Image: NORR architects

Monifieth’s new showpiece secondary faces a fresh threat after another cost hike took the project to more than £65 million.

With just weeks until construction is due to start, Angus councillors must make a crunch call over the scheme’s future next week.

It is the second time they have had to decide whether or not to press on with the project in the face of spiralling costs.

But Monifieth councillor and authority leader Beth Whiteside says she will not allow the ambitious plan to be derailed.

And her role as policy and resources convener could be pivotal in ensuring the plan progresses.

A design drawing of the new Monifieth learning campus. Image: NORR architects

How costs have escalated

The 1,200-pupil learning campus – with swimming pool, nursery and community pitches – is earmarked to open in 2025.

Councillors backed the proposal to replace the creaking high school in 2020.

At that time a £50m price tag was put on the project.

In June last year, it emerged the estimated total cost had jumped to £61m.

A report going before Angus policy and resources committee on Tuesday reveals the figure has now risen to £66.5m.

The financial blow will be softened by an 11% uplift in support from the Scottish Futures Trust – equivalent to £2.9m.

But it leaves the cash-strapped authority with a £10.5m black hole to fill before a spade has struck the ground.

And finance chiefs have warned there is no guarantee costs will not increase further.

The new financial breakdown is:

Construction and demolition: £62.75m
Design and statutory fees: £2.42m
Utilities: £0.2m
Project specific staffing costs: £0.83m
Project risk/contingency: £0.3m
Estimated project cost: £66.5m

Monifieth High is in need of replacement.

The project hike has been blamed on:

Continuing effects post-Covid on material cost and availability
Inflation within the construction market
Supply issues and global demand for materials as a result of external factors including the Russian invasion of Ukraine
Concerns by suppliers and contractors relating to any future restrictions/pandemics
The effect of Brexit on material importing costs
Significant fuel and energy cost increases, affecting material production and delivery

Options on the table

Angus officials say the significant increase in costs could constitute a material change of circumstances that would allow the committee to reconsider their previous decision.

In essence, it provides the option to axe the scheme and look at alternatives for replacing Monifieth High.

But Cllr Whiteside, as convener, holds the power to decide whether the matter should be reconsidered.

Councillor Beth Whiteside, leader of Angus Council. Image: Kim Cessford/DC Thomson.

And she has laid down a clear marker the project will not be dropped.

In a joint statement with committee colleague and fellow Monifieth SNP councillor Lloyd Melville, she said: “The increase in costs is unfortunate, and largely due to the prevailing economic headwinds, driven by UK decisions like Brexit and the Truss mini-budget.

“Despite this, we are absolutely committed to the Monifieth learning campus project.

“We promised in the election to build the new school, and that is exactly what we’ll be recommending to committee.”