THE cost of building a new school in Milford Haven has increased by nearly 40 per cent but there is clear support for continuing with the plans.

An extraordinary meeting of cabinet this week heard that inflation had impacted the costs of all Band B 21^st Century Schools projects including Portfield School and Pembrokeshire Learning Centre.

On Thursday (February 24) a report noted that the cost increases previously reported for Milford Haven secondary school were based on a notional 30 per cent increase but the actual inflationary increases amounts to 38.4 per cent – £62.7million to £86.8million.

It has previously been agreed to utilise a Mutual Investment Model (MIM) to fund the Milford plans, with council tax increases of 0.27 per cent ring fenced each year to pay for it.

The report adds that it is not planned to amend this contribution for 2022-23 but “to revise the contribution in 2023-24 to 2026-27 once there is more certainty over the annual revenue costs of the MIM.”

The costs of achieving next zero carbon under new Welsh Government requirements will be met by Cardiff.

The total Band B ‘envelope’ is £106,400,000 including Haverfordwest High VC and Waldo Williams Primary, with £6,124,260 remaining to fund MIM capital costs, the report notes.

Cllr Tessa Hodgson raised concerns about the plans, while making clear “no one wants a new school in Milford Haven more than me.”

Cllr Hodgson said she was concerned about such an increase in costs “before a shovel can be put in the ground” as well as committing future administrations to unknown council tax increases to pay for it.

Cabinet member for finance Cllr Bob Kilmister said he was “not a massive fan of MIM but I do strongly believe it’s the only sensible funding option we have to be able to deliver a project that everybody wants.”

The increases in costs require that the Band B strategic outline plan be revised and reported to full council.