The firm is set to lead the £575million regeneration of Queensway alongside Southend Council
A housing association has been slammed by government inspectors, sparking concerns over the future of a £575million regeneration project.
Concerns were raised surrounding the financial viability of Swan Housing, with inspectors highlighting a ‘material deterioration in Swan’s financial position’.
The firm is set to lead the £575million regeneration of Queensway alongside Southend Council.
The plans will see 1,760 new homes built, but opposition councillors say the report casts doubt over the huge project and its success.
Kevin Buck, Tory shadow cabinet member for transport, inward investment and infrastructure, said: It’s incredibly damning and for the inspectorate to use wording like this is forthright and unambiguous.
It shows the inspectorate has no confidence in the future of the organisation. It must ring huge alarm bells about the council embarking on the huge Queensway project, he said. I am concerned about the viability of the project following the report.
Inspectors pointed towards a lack of business planning and ability to manage risks.
They said: The regulator has concluded that Swan is non-compliant with the governance and financial viability standard.
Specifically, the regulator lacks assurance that Swan has an appropriate, robust and prudent business planning, risk and control framework and that it has adequately managed, and where appropriate, addresses risks to ensure its long-term viability, they said.
Swan Housing’s chair Pat Billingham insisted immediate action has been taken.
She said: We accept the regulator’s findings. We have been working proactively with the Regulator since it issued a ‘grading under review’ notice and have in progress a series of actions to deal with the immediate challenges seen within our business plan.
She said: We remain committed to the communities we serve and will continue to work to address findings.