Tories hit out as Wolverhampton Council's spending on Bilston market redevelopment increases by £2.5 million to £8.9 million

Councillor Wendy Dalton, deputy leader of the opposition Conservative group on Wolverhampton Council, voiced concerns about the authority's decision to provide an extra £2.5 million for the delayed Bilston Market regeneration scheme.

Councillor Dalton, who earlier this year accused the council of squandering £1.3 million on administration before a spade had been turned, said the cost of the project had now ballooned from £6.4 million to £8.9 million. 

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Originally funded by a £5 million government 'levelling up' grant and a further £1.4 million from the council's capital regeneration programme, the scheme was intended to cover demolition and reconstruction of public toilets, new canopy and stalls, improved public areas and signs, as well as a new enterprise and events space with improved accessibility and branding. 

However, a pre‑construction report by Speller Metcalfe revealed that inflation, supply‑chain volatility, unexpected ground‑condition remediation and programme delays had driven costs well beyond initial estimates.

Councillor Dalton said that the decision to draw a further £2.5 million from contingency reserves exposed a deeper failure in the council’s financial controls.

“We already questioned the fact that 30  percent of the original budget wasn’t even going into spades in the ground, and Labour told us that money was held back for ‘contingency purposes', " she said.

"Now here they are again, coming back to ask for more money taking contingencies to £3.6 million, nearly doubling the overall delivery budget. It’s clear that original contingencies weren’t enough, and it’s another case of this Labour council not knowing how to deal with money or major projects."

Councillor Dalton also pointed out that the extra funding would need to be funded through borrowing, adding an estimated £180,000 per year to the revenue budget for the next 25 years. 

Work is due to resume on the site today (July 23) after the market's traders were temporarily relocated.

Last week council leader Councillor Stephen Simkins revealed that completion date for the scheme would be delayed after it emerged the ground conditions were more difficult than previously thought. 

The revamped market is now due to reopen in March 2026.

Councillor Dalton added: "This pattern of underestimating costs, pushing deadlines back, then crying out for more cash is becoming all too familiar," adding that £1.2 million had been spent on administration for a similar scheme in Wednesfield.

Councillor Bhupinder Gakhal, cabinet member for resident services at Wolverhampton Council, defended the council's handling of the project.

He said unforeseen circumstances were not unusual in major construction schemes, which was why the council had set aside contingency funds..

“We are 100 per cent committed to delivering the very best market in the West Midlands for the traders and the people of Bilston, boosting the local economy," he said.

“As Councillor Dalton herself points out, we have had to completely re-engineer the scheme after the discovery of major problems in the ground.  

"This is on top of inflation, supply chain pressures and updated construction standards.

“Despite this – and rather than downscale the project – we are determined to deliver the new market the traders were promised – and that’s what we’ll do.

“Any construction scheme can encounter unforeseen difficulties like these but, because we manage the council’s finances well, we have contingency funds we can call on if absolutely necessary.”