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Government agrees to continue Garden Bridge financial support

Garden bridge revised
  • 3 Comments

Transport secretary Chris Grayling has agreed to extend financial guarantee up to level of £9million after Garden Bridge Trust requested one totalling £15million

Transport Secretary Chris Grayling has agreed to extend a financial guarantee for the £185m Garden Bridge but has capped the amount and warned the project will receive no further support from the taxpayer.

An agreement by the Department for Transport (DfT) to underwrite the Thomas Heatherwick-designed scheme to the tune of £15 million was due to run out next month and in July, Garden Bridge Trust chairman Lord Davies of Abersoch wrote to Grayling asking for a year’s extension.

Grayling has agreed to extend the arrangement for ‘as long as it takes’ the AJ understands but only to cover cancellation liabilities of £9m, believed to be the amount required as of next month by the trust.

Earlier this month, the trust admitted it still needed £55.9 million to meet its fundraising total, having raised just over £69 million of private funding between 2013 and June this year.

Speaking on Grayling’s behalf, transport minister Lord Ahmad said: ‘The Government wishes the exciting and innovative Garden Bridge project every success and has provided public funding to help get it off the ground.

‘We have extended our agreement to underwrite cancellation costs but capped at the current level of £9 million.

‘The taxpayer must not be exposed to any further risk and it is now for the Trust to find private sector backers to invest in the delivery of this iconic project.’

The AJ understands that Lord Davies and trust chief executive Bea Emmott plus board member John Heaps met with Grayling over the summer and that Emmott had several further meetings with DfT officials.

Several critics of the Garden Bridge including London Assembly member Tom Copley, architect Walter Menteth, consultant Dan Anderson, campaigner Will Jennings and local resident Michael Ball of Thames Central Open Spaces (TCOS) also wrote to Grayling expressing their objections to the project.

A spokesperson for the Garden Bridge Trust said: ‘The Government has made it clear it wishes to continue to support the ‘exciting and innovative’ Garden Bridge and has agreed to extend a large part of its underwriting agreement.

‘The Garden Bridge Trustees have agreed to explore any further underwriting required and are currently working with new private sector sources to build on the current support.’

  • 3 Comments

Readers' comments (3)

  • so just around £75,000,000+ to raise in 6 months or so then? made up of known £56m shortfall plus £6m underwriting and around £13m maintenance fund shortfall (around £15m required and a 'couple of million' to quote news night in the pot so far) and the price will go up with inflation also etc... if they manage to raise all of this and build it with no more public money then hats off to them.

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  • So - Lord Ahmad, speaking for Chris Grayling, speaking for the government, is keen to be seen to be limiting our financial exposure while endorsing an 'exciting and innovative' project.
    Caught between a rock and a hard place, maybe, courtesy of dear Boris and pals - but, nevertheless, backing a project borne out of undemocratic public oversight and thoroughly dishonest public procurement, the message is clear: dangle the right bauble in front of our politicians and democracy, honesty and due process fly out of their prams.

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  • Did anyone doubt it? Are these really red lines? When will the next exceptional request come forward?

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