Plans to open a £1.8m homeless shelter in Leicester are to be scrapped after local elections took power away from the Labour party for the first time in two decades
The impact of the 1 May elections on Leicester's housing and regeneration policy is just starting to become clear, with the Liberal Democrats and Conservatives forming a coalition to control the council. Its new leaders were to be sworn in yesterday.

Incoming Tory and Lib Dem councillors feel the shelter would damage local businesses, which have lobbied hard against it. Incoming deputy leader, Conservative Roman Scuplak, said he was also worried the shelter would devalue nearby luxury flats. He said: "We're undoubtedly going to overturn it."

The facility was to have replaced services dispersed across the city. It would have provided beds, a GP service and an alcohol abuse centre.

It was funded by a £750,000 grant from the Office of the Deputy Prime Minister's rough sleepers unit.

Labour councillors claim this money will be lost if the scheme is abandoned.

Councillor Mary Draycott, outgoing cabinet leader for housing, said: "A city centre is not just for top-rate council taxpayers – it should serve all its citizens."

The new council leadership also plans to abandon some regeneration schemes.

Source

Housing Today