• Leaked 2013 council memo shows budget black-hole
  • Opposition councillors react with fury
  • Officials had stonewalled questions for over a year

SOCIAL care bosses considered creating a "fudged" financial plan as their care home project became embroiled in crisis.

As early as 2013, potential operators of the homes had "grave concerns" over the affordability of the project, a leaked document seen by The Press shows. Officials drew up a list of options including whether to give bidders "a fudged affordability model" or whether to "come clean".

York Press:

Extracts from the leaked report. See the full memo here.

The leaked internal memo reveals City of York Council had budgeted for one member of staff for every six residents, but dementia care experts had told them it should be one to five.

The memo says the three bidders had started asking questions about the finances and could possibly walk away from the deal.

>>> ORIGINAL STORY: CYC abandons £13.4m care home project after negotiations fail

The risk report would not have been seen by councillors but would have been seen by "senior officers", a City of York Council spokeswoman said.

On Monday, the plans to build care homes on the former Burnholme and Lowfield sites were abandoned following four years of planning and negotiations costing £350,000. The council said it and the potential operators deemed the project unaffordable.

Cllr Carol Runciman, Liberal Democrat spokesperson for health, yesterday said the scheme was flawed from the outset and instead of rethinking the project, council leaders "continued to waste taxpayers money on the scheme".

York Press:

The Lowfield care village will not now be built

She said: "What is even more worrying is the revelation that it appears the council considered giving bidders a ‘fudged’ financial plan to keep the project going."

Cllr Paul Doughty, chair of the health overview and scrutiny committee, said it raised concerns about transparency and said: "I am furious that after being repeatedly told the procurement was proceeding and only ‘commercial confidentiality’ prevented fuller disclosure to discover that not only were the original specifications flawed but the project group... were considering ‘fudging figures’, whether to ‘come clean’ and aiming for a start date based on positive pre-election media.

"I will be writing to the chief executive and council leader to ask who was on this secret shadowy group, who authored and saw this paper and why, knowing there were such significant problems back in 2013, was this covered up and hidden for so long?"

York Press:

From left: Cllrs Paul Doughty, Carol Runciman and Tracey Simpson-Laing

Cllr Doughty called for a transparent investigation" to prevent such a dreadful situation ever occurring again."

The Press has been asking questions about the stalled elderly people's homes for more than a year however the council repeatedly said it was not able to respond to questions as it was bound by confidentiality during the "competitive dialogue stage of the procurement process".

Cllr Tracey Simpson-Laing, who was then cabinet member for health, said yesterday she had categorically not seen the document in question and that councillors were legally not allowed to be involved in financial tenders.

>>> See the memo in full here

Guy Van Dichele, interim assistant director for adult social care, said the leaked memo had been produced early in the dialogue process to highlight risks and promote debate.

He said: “The internal document referred to was produced early on in the dialogue process to highlight potential risks and promote debate amongst officers on the project board, and was a working document.

"The minutes from the meeting clearly show that it was agreed to ask the relevant bidder to produce an alternative model, which they felt met the financial criteria. All discussions between the council and bidders were open and honest.”

Meanwhile, former York council leader Andrew Waller has said the abandonment of plans to build a super care home in Acomb is "a let-down" to the whole community.

Seven outdated care homes for elderly people are being closed and were due to be replaced by new "super care homes" run by private providers on the former Lowfield and Burnholme school sites.

York Press: Coun Andrew Waller at the scene

Cllr Andrew Waller, pictured above, ward councillor for Westfield, said he was disappointed the plans for Lowfield have fallen through.

He said: "We could have had a really groundbreaking community built here which would have ensured that everyone around benefitted by being able to stay close to family and friends. Instead a huge amount of money has been spent, and I expect that when the full figures come out that there is a very much larger true cost."

The £13.4 million programme was first announced in 2011.

The council has gone back to the drawing board to outline new plans to find 213 places for older people including adapting care at five sheltered accommodation homes and developing the Lowfield site into more than 100 homes. A quarter will be for elderly people and there will also be starter homes.