Milton Keynes Conservatives have raised serious concerns after new Cabinet papers revealed the cost of the long-delayed Agora regeneration scheme has nearly doubled, with taxpayers now being asked to shoulder almost £60 million in borrowing
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The latest report recommends increasing the project budget from £36.6 million approved in 2021 to £76.8 million today, largely funded through borrowing at significantly higher interest rates. Conservative councillors also raise that a significant factor of this huge cost increase is the repeated delays this project has faced under the last twelve years of Labour leadership.
The updated proposal also removes all affordable housing from the scheme following viability concerns.
Councillor Shazna Muzammil, Leader of the Conservative Group on Milton Keynes City Council, said:
“Residents were promised regeneration, new homes and investment for Wolverton. Instead, they are being asked to accept a project that has faced significant delays, doubled in cost, lost its affordable housing and now relies on almost £60 million of borrowing to go ahead.
Families across Milton Keynes are tightening their belts while council tax continues to rise. They expect the Council to manage public money responsibly.
Nearly £10 million has already been spent3, with only rubble to show for it, and we are now being told that walking away would create further pressure on the Council’s budget. That leaves taxpayers effectively locked into a decision they never made.”
The updated plans confirm the Council will now directly build and sell a block of homes itself after the appointed delivery partner, TOWN, was unable to secure private funding for Block C.
The Cabinet report acknowledges the Council has limited experience developing homes for sale and highlights financial risks linked to borrowing costs, property sales and rental income assumptions.
Cllr Muzammil added:
“There are so many red flags in this report, and the financial risk is so high. The Council itself recognises it has limited experience in developing and selling homes, yet it now intends to act as developer, landlord and seller.
The benefit-to-cost ratio is just 1.11. That leaves very little room for error. If costs rise further or projected income falls short, the financial case quickly weakens.
Borrowing has risen to almost £60 million at a time when interest rates have more than doubled since the original decision.
If rents fall, homes do not sell, or construction is delayed, it will be Milton Keynes residents who carry the consequences.
Wolverton absolutely deserves regeneration. We support investment in our town centres. But regeneration must be delivered responsibly, transparently and with real value for money. Right now, serious questions remain about whether this proposal meets that test.”
The Cabinet considered this report at yesterday’s meeting (3rd March 2026) and the final approval of resource allocation will be taken at Full Council in March.
