![\"Works](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/04\/0_Dudley-RoadPNG.png\")
Works being carried out on the A457 Dudley Road back in 2022(Image: Google Earth)<\/p>\nBirmingham City Council said the project had been hit by ‘unforeseen inflationary pressures and rising costs’Works being carried out on the A457 Dudley Road back in 2022(Image: Google Earth)<\/p>\n
Birmingham City Council\u2019s scheme to improve a key route may end up costing at least \u00a37 million more than its original budget.<\/p>\n
Works have been carried out recently as part of the major A457 Dudley<\/a> Road project in a bid to better journey times and enhance public transport.<\/p>\n The council<\/a> is therefore providing new bus lanes, upgrading facilities for pedestrians and cyclists and improving junctions to reduce congestion.<\/p>\n READ MORE:<\/strong> Government minister’s message as hopes for Birmingham council crisis inquiry fade<\/strong><\/a><\/p>\n But \u201cemerging pressures\u201d have meant permission is now being sought for around \u00a32.5m worth of extra funding – bringing the forecast cost to complete the whole project to around \u00a339.6m<\/p>\n The council\u2019s cabinet previously approved the \u00a332.1m original budget in 2022 and then a revised budget of \u00a337.1m a year later \u201cto account for inflationary pressures and design changes\u201d.<\/p>\n Government-appointed commissioners, sent to oversee the crisis-hit council\u2019s recovery, said it was \u201cdisappointing\u201d that the scheme is seeking a further \u00a32.5m of funding.<\/p>\n \u201cIt looks likely to be \u00a37.5m (23 per cent) over the original budget,\u201d they wrote.<\/p>\n \u201cThis latest increase in costs follows the previous \u00a35m allocation and a lessons learnt report.<\/p>\n \u201cCommissioners note that this report highlights the delays and costs incurred when design is not fully finalised and risk assessed before committing to contract.<\/p>\n \u201cThis, regrettably, is not unknown in the industry yet these basics are still ignored.\u201d<\/p>\n It is proposed that the \u00a32.5m shortfall is met from Bus Lane Enforcement net surplus income.<\/p>\n In a recently-published report, the council said the revised budget in 2023 was approved to \u201caccommodate wider unforeseen economic inflationary pressures and rising base energy, material and labour costs resulting from wider global financial instability”.<\/p>\n Other factors, such as delays resulting from technical approvals, have also had an impact.<\/p>\n ‘Increased cost pressures’<\/strong><\/p>\n \u201cThe programme for delivery of phase four has been dictated by the ongoing decommissioning and demolition of City Hospital and the protracted delays to the opening of the New Midland Metropolitan University Hospital,\u201d the report continued.<\/p>\n \u201cThis has resulted in further extensions to the A457 delivery programme with increased cost pressures impacting the overall scheme budget.\u201d<\/p>\n It went on to say that existing issues will be exacerbated if all four phases of the project are not completed.<\/p>\n According to the report, these include: \u201cCongestion for all modes of transport, health issues related to harmful air pollutants, low levels of physical activity, casualties from traffic collisions and social exclusion from poor accessibility to jobs and education opportunities.\u201d<\/p>\n Ahead of a meeting next Tuesday, April 29, the council\u2019s cabinet have therefore been recommended to approve the funding of \u00a32.5m to complete the delivery of phase four.<\/p>\n![\"Birmingham](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/04\/1_JS326918532.jpg\")
Birmingham City Council House in March 2024.(Image: Anita Maric \/SWNS)<\/p>\n