Councillors passed a recommendation to award an additional £352,000 for a temporary homes development.

Conservative members unanimously voted to award the capital funding, on top of the £2.2m which has already been put aside, for the controversial Crown Road development which was given approval last year.

An amendment by Hertsmere Labour to reduce the 28 homes by half to save costs was refused and they rejected the original recommendation.

Borehamwood Times:

Cllr John Graham, responsible for finance and property, surprised the council chamber at last night’s council meeting when he revealed Hertsmere Borough Council had slashed the number of people living outside the borough from 33 to just two families, leaving those who objected to the plans wondering why the containers were still necessary.

However the council has confirmed that the Crown Road development, which has numerous conditions attached, will allow some of its 145 families in temporary accommodation to move in in which the council are currently forced to pay nightly rates for.

The council says that because much of its temporary accommodation is in the private sector, the council is charged nightly rates which “far exceed” the amount the council is entitled to claim back from tenants’ housing benefit, creating a funding shortfall.

By buildings its own homes, the council will no longer have to pay the nightly rates and in turn save the council money.

Campaign group Borehamwood Under Threat maintain they are not against people being housed, however there is a feeling of regret that concerns raised during consultation were not raised and there are now accusations that the scheme is a “money making exercise”.

Borehamwood Times:

Cllr Graham said: “The council’s housing team has been doing a fantastic job bringing households based outside the borough back into Hertsmere.

“The Crown Road accommodation will be charged at the housing benefit rates, which will mean that the council does not have to meet a shortfall. Although the council will be making a significant investment in the development, in the long term the new homes will enable the council to save money by avoiding the need to pay nightly rates to private sector suppliers.”

Alterative options had the funding not been pushed through would have been to reduce the development in size to fit the approved budget or continue to pay high rates.

The council says the extra money was needed due to an increase in costs to build the homes and the provision of hot and cold air handling units which were added as the project developed.

The council has also confirmed it can proceed with the development after UK Power Networks were "satisfied" after carrying out surveys on the site. Concerns had been raised about the nearby pylons.