Legal threat over delayed £8m offer

The housing firm Keepmoat was made a conditional offer of £8m in round one of the Regional Growth Fund over a year ago to revive a stalled housing programme in west Hull.

However Hull Council’s portfolio holder for housing, Coun John Black, said they had been told the plans were being held up by Housing Minister Grant Shapps, because of doubts raised over the scale of demolition. He said: “We are going to write to Grant Shapps. If it is not demolition what is the other option? Legal action may have to be considered.”

A Department for Innovation, Business and Skills spokesman said all bids that had received a conditional offer went through the same process. He said: “The bid is currently being reviewed as part of the due diligence process by both BIS and CLG officials to ensure that it is viable and provides the best possible value.”