Building delays on city's 33-storey tower block cost Milton Keynes taxpayers millions of pounds

Planning permission in 2021 to transform the former council housing office building into ‘MK Gateway’ – a £200 million housing, office and retail development incorporating 288 apartments and mammoth 33-storey tower block.

But despite “repeated extensions” granted to the developer, no building work has yet taken place and the site remains empty, city Conservative councillors have complained this week.

They calculate the delay has already cost the council and local taxpayers around £2.9m.

Some £1.6 million of this is in interest foregone by the council and Milton Keynes Development Partnership following a decision to allow the developer to delay payment for the site.

Meanwhile, the council has had to pay out £1.1 million since 2023 in business rates on the unoccupied building - plus another £12,500 a month in security costs to stop it being trashed.

Conservative group leader Councillor Shazna Muzammil said: “While our roads crumble, our underpasses flood and council tax bill keeps rising, the Labour council, backed by the Liberal Democrats, has been quietly haemorrhaging millions on an empty building in the heart of Milton Keynes.”

She added: “Saxon Court has already cost Milton Keynes around £2.9 million in lost income and holding costs while the site still sits empty. When millions of pounds are being lost like this, residents are right to question whether public money is being managed competently. This is money that could have gone towards fixing potholes, maintaining our streets, improving lighting and tackling flooding in our underpasses, rather than residents being told there is no money and council tax needs to keep rising.

“Residents work hard for their money and expect the council to manage public finances responsibly.”

Council papers also indicate that proposed changes to the development mean there will be no affordable housing provision on site, and developer contributions under Section 106 agreements have been reduced.

This decrease lowers funding for local infrastructure such as healthcare facilities and community services.

Cllr Muzammil said: “Milton Keynes deserves regeneration and investment, but it must be managed responsibly….At the end of the day, it’s our residents through no fault of their own who will end up having to pay for all of this financial mismanagement”

Developers Socius and investors Patron Capital acquired Saxon Court and the adjacent land from Milton Keynes Council and Milton Keynes Development Partnership with Patron Capital in 2021.

Galliford Try was last year given the go-ahead to build the mighty tower block, which will become the tallest building in Milton Keynes.

The Citizen asked Socius why work had been delayed and whether a start date had been set.

A spokesperson for the company said: “We continue to work with MK City Council and MKDP on the delivery of the MK Gateway project and believe it has the potential to bring high-quality office space, homes and opportunities for small businesses to Central Milton Keynes.”

No reason for the delay was given and our question about a start date was unanswered.