An independent audit report said that Labour run York Council’s plans for multi-million pound super care homes were “flawed” and promised savings had been “double counted”.

Labour’s Elderly Persons’ Homes (EPH) programme promises to replace existing care facilities in York and build new homes on the former Lowfield and Burnholme school sites.

However, the project has been beset with problems and is currently running years behind schedule.

Now the publication of a report by external auditors Mazars, from July last year, has for the first time revealed their criticism of the project.

The report was revealed last night to the council’s cross-party Audit and Governance Committee.

600,000 of planned savings from EPHs were not delivered because of issues around building new units and assumptions were flawed.

The original estimated savings were too ambitious and members made changes to the project.

There was no effective challenge of the external expert’s assumptions. In addition savings were double counted”.

Liberal Democrat Spokesperson for Adult Social Care, Cllr Lynn Jeffries, commented:

“This independent report confirms our worst fears about Labour’s handling of this project and echoes some of the points we were also making last year. It is now clear that promised savings have not been delivered because Labour’s plans were flawed. The failure to make these savings is currently having a serious knock-on effect on the wider social care budget. Labour need to get a grip of the project which is already late, way over-budget and will deliver fewer beds than originally promised”.

Cllr Jeffries said that the July 2013 report casts fresh doubt on the role played by Labour Deputy Leader, Cllr Tracey Simpson-Laing. Simpson-Laing had been in charge of the project since 2011; however, she lost responsibility for it in a Cabinet reshuffle in April moving to a new Homes and Safer Communities role.

Cllr Jeffries commented: “Cllr Tracey Simpson-Laing bears ultimate responsibility for the original plans being flawed. However, according to the audit report it appears that changes she made later actually made things worse. It is becoming clearer why she was reshuffled in April; however, many residents will wonder how she clings on to any job in the Cabinet after her inept handling of this crucial project.”

Please find attached the relevant section of the audit report. The full report is expected to be uploaded to the council website later today. It was discussed at last night’s Audit and Governance Committee. Video here (Agenda Item 8 – 1 hour 24 minutes in):

Cllr Lynn Jeffries, challenged Labour on the EPH project at this month’s meeting of York’s Full Council. However, the Labour Cabinet Member now in charge of the project (Cllr Cunningham-Cross) refused to say when work on the new care homes would start.

(xxx) To the Cabinet Member for Health and Community Engagement from Cllr Jeffries: “What is the expected timetable for the development of the Lowfields Care Village, when will local residents be updated on the project, when will a planning application be submitted and what are the estimated completion and occupation dates?”

Answer: “The re-provision of the EPH was subject to a tender process. We are currently in the Competitive Dialogue Phase and, as with any procurement process, the negotiations are confidential. A finalised timetable for planning, construction and occupation cannot be given until negotiations are complete”.