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Luton guided bus hits £5.4M funding shortfall

Luton Borough Council was this week preparing to scale back its £89.2M Luton to Dunstable Busway project after identifying a £5.4M funding shortfall.

The busway is intended to run between Houghton Regis and London Luton airport running for 7.4km in guided busway, 2.4km in unguided busway and 3.6km on the highway.

Value engineering

But the council and Bam Nuttall are carrying out a value engineering exercise because expected developer funding has failed to materialise.

The Department for Transport is providing £80.3M for the project, but has told the council that no extra funds are available.

The remaining £8.9M was due to be sourced locally, with £5.4M currently unsecured after developments were cancelled due to the economic climate.

The shortfall was revealed in a report to the council’s Overview and Scrutiny board last month.
Bam Nuttall’s construction contract is worth £54M.

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