The bill for Perth’s Cross Tay Link Road (CTLR) project has risen by around 28% to more than £150 million.
Perth and Kinross Council (PKC) leaders have confirmed the road and bridge – the biggest infrastructure project ever undertaken by the council – will still go ahead.
They plan to meet the bill with money from their capital budget that has not yet been committed to building projects.
But opponents fear communities will be “shackled to twenty years of debt” if councillors approve the £32.5m uplift at a meeting later in September.
PKC councillors have already been warned about a £24m “budget gap” between spending and income, sparking fears about further cuts to council spending.
The Scottish Government has provided £40m towards the project, but Transport Scotland officials have signalled they will not meet any new shortfall.
The 3.7-mile road and bridge to the north of Scone was initially expected to cost £113m, later rising to £118m.
The latest estimated £32.5m rise brings the bill to more than £150m.
The road and bridge will eventually link the A9 to A93 and A94. The current completion date is 2025.
Perthshire Green MSP Mark Ruskell said: “The CTLR is in danger of becoming a financial black hole that council tax payers across Perth and Kinross will be filling for decades to come.”
Project could ‘deprive people of Perth’
Jill Belch, from Scone Community Council, has been a vocal critic of the infrastructure project.
She said: “The huge cost of this road will shackle Perth and Kinross council to 20 years of debt, depriving the people of Perth the Kinross of so many other better investments.
“We will have a debt ridden council, more pollution and ill-health for the people who have to live by this road.
“It will also create significant dangerous traffic problems in the villages along the A94 on the road’s approach, along with the increase in traffic all such roads bring.
“It will also act as a ‘bypass’ starving our local businesses of tourist footfall.
“This all seems crazy to me.”
The project is seen as crucial to economic development in Perth, unlocking large swathes of land to the north of the city for housing development.
Council papers confirm PKC will not be able to meet its local development plan commitments to provide land for jobs and housing without the road and bridge.
Supporters have also argued the project will ease congestion and air quality problems, most notably in the Bridgend part of the city.
Revised CTLR costs published in council papers
Officials published the revised estimate on page 44 of papers for the Finance and Resources Committee to be held on Wednesday, September 7.
It also revealed a £700,000 increase in the costs for the ongoing city hall project.
The papers stated: “Both projects are on site with considerable expenditure already incurred in their delivery to date.”
Contractor BAM Nuttall has delivered stage one of the CTLR with substantial earth works and tree clearing evident across the route.
Stage two out of three – the main construction phase – is due to start shortly, provided councillors greenlight the additional capital spending.
A PKC spokesperson said: “As with all construction projects, The Cross Tay Link Road project is being impacted by inflationary pressures that are pushing up the cost of materials.
“This additional funding, which will come from uncommitted capacity within the council’s approved capital budget, ensures that the Cross Tay Link Road project will be completed.
“Once it opens it will deliver a significant economic boost to Perth and Kinross by improving the local transport network, reducing journey times and attracting inward investment.”
A Transport Scotland spokesperson said: “Officials at Transport Scotland have received no communication from Perth and Kinross Council suggesting any increase in project costs.
“Given that ministers have confirmed their contribution, it will be a matter for Perth and Kinross Council to consider how they manage any changes to projected project costs should they arise.”
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