Milton Keynes waste facility will cost taxpayer £10m in interest charges

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The new Residual Waste Treatment Facility at Old Wolverton is five months behind schedule – and will cost taxpayers nearly £10m in interest charges, it has been claimed.

Conservative group leader Edith Bald, says the Labour council took a “gamble” with taxpayers’ money in borrowing £95million to finance the project with an interest rate of £3.5m per year.

She said: “In 2013 the Conservative council signed the contract that guaranteed citizens do not pay a penny until the plant is fully operational. However, since Labour took control in May 2014 mistakes have been made.

“It is surprising that the council took a gamble with taxpayers’ money and borrowed such eye watering sums of money.

“The waste factory is now scheduled to open next May, having already cost the council over £7m in interest costs, with a further £2.8m to come, and nothing to show for it.

“Labour’s incompetence is adding more pressure to council budgets and putting an increasing financial burden on our long suffering citizens.”

The delay, claim MK Council, is due to the unexpected insolvency of a major contractor.

Councillor Rob Middleton, said: “This building project was inherited from the previous Tory administration, who in 2013 signed a 15 year contract to build and operate the waste treatment facility.

“What is important, is this flagship facility is forecast over its lifetime to deliver £50m worth of savings.”