Newhaven council homes plans put on hold by 'catastrophic' impact of government mini budget

Proposals for six three-bedroom homes to be built on the former fire station site in the coastal town have been put in serious doubt by what the council call ‘unprecedented economic conditions’.

Councillor William Meyer, cabinet member for Housing at Lewes District Council, said: “The catastrophic impact of the government’s mini budget has potentially derailed a superb development of new homes that local people are desperate for.

“We are very proud to be a council that builds high quality homes for our residents and we will continue to make it a top priority despite the economic disaster unfolding around us.”

In September, then prime minster Liz Truss and chancellor Kwasi Kwarteng announced plans to cut the basic rate of income tax to 19% and 45% rate of income tax for earnings over £150,000 to be abolished for England, Wales and Northern Ireland taxpayers.

The £45 billion of unfunded tax cuts led to days of turmoil on the markets, a record-breaking fall in the value of the pound and rises in the cost of UK government borrowing and mortgage rates.

The fire station site would be the second council development in Newhaven in recent times, with councillors stating the plans included a long list of sustainability features that would help reduce energy costs and carbon emissions.

However, the council has said it has been forced to review the business case for the scheme following the fall-out of the mini budget.

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Councillor James MacCleary, leader of Lewes District Council, said: “Let’s be clear here. We have a really good plan here to build high quality, sustainable new homes for local people on our waiting list and we are unable to proceed due to rocketing costs that are the direct result of government incompetence.

“Every imaginable cost has gone up including the cost of borrowing. I know that all of my colleagues are committed to seeing this scheme built when the costs are more manageable.”

Maria Caulfield, the Conservative MP for Lewes since 2015, told SussexWorld she questioned what the district council had done with a supposed £100 million package given to them by the government in 2019 for housing in the North Street Quarter (NSQ) and a new medical hub in the town.

The site – which includes the Phoenix Industrial Estate – has been planned to provide 416 new homes, including a health hub, public square, cafés and galleries since it was bought off the council by eco-development company Human Nature in 2020.

She said: “My question for Lewes District Council is what happened to the £100 million given to them by the Government in 2019 that was for affordable housing in the North Street Quarter.

"Not a brick has been built and families are still waiting for that housing and the new medical hub for the town that was supposed to be built with it.”

However, Lewes District Council confirmed with those working on the NSQ project that it had never received this money and was not expecting to any time in the near future.