The London police force has placed a £1.4bn seven-year building programme under review as a result of changing market conditions, fuelling concerns that public spending will not be immune to the recession.
The Metropolitan Police Authority (MPA) – the independent body that oversees the city’s police – said it was reviewing a scheme to improve police stations across London.
It said: “In the light of the position of the financial and property markets, the service is reviewing its seven-year capital programme. A report is expected in spring 2009.”
The organisation, which had £30m of deposits in a collapsed bank in Iceland, said budgets were becoming “increasingly tight”. It said projects under way would continue, but long-term schemes would be re-assessed.
A budget of about £1.2bn was proposed for the Met’s capital works programme, which was increased to £1.4bn last November.
The bulk of the money was understood to be earmarked for building projects. Firms working for the Met include EC Harris, McBains Cooper and Davis Langdon.
The worry is this will be replicated elsewhere
Source close to programme
Olympic security costs are also covered by the spending plan, but the MPA said this would not be affected.
The news has raised questions about the government’s promise to spend its way out of the financial crisis.
A consultant close to the programme said: “The worry is this will be replicated elsewhere. The chances are other police forces have similar problems.”
The MPA also admitted to problems with a consultation earlier this year on plans to modernise police facilities. Steve O’Connell, chairman of the body’s finance and resources committee, said: “These well-intentioned plans were poorly presented.”
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