A SENIOR councillor has accused developers who claim a school project has gone £1.3m over budget of acting like greedy bankers.

Darlington Borough Council leader John Williams said Kier Northern’s claim that Northwood School overran its agreed cost by 20 per cent was outrageous and the council would robustly defend the comment.

The Conservative party, which forms the opposition to the council’s ruling Labour group, said it would call the item in for scrutiny to examine exactly what had happened and why.

The building contractors have billed the council for the extra money. They say the total amount comes to £7,225,131, rather than the agreed £5,924,450. The council puts the overspend at only £106,858 and is in the process of disputing the claim.

The council was billed for the extra money on Christmas Eve last year. The previous statement, received in September, indicated the project was on budget.

If they lose the dispute, which could involve arbitration and possibly even a legal battle, the council could be left to foot the full bill.

Last night, the local authority’s cabinet gave director of people Murray Rose approval to take charge of the challenge, coordinate the council’s reponse and deploy funding where necessary. The school, which was finished in September, replaced North Road Primary School.

Councillor Heather Scott, leader of the Conservative group, said she was concerned this claim had come after the council had massively overspent on two other major projects – the Eastern Transport Corridor and the Pedestrian Heart – in recent years.

“I would like to give notice that the Conservative group are going to be calling this item in,” she said. “I think there are a lot of questions which can’t be answered in the open arena of this meeting because of any potential legal proceedings.”

But the deputy leader, Councillor Bill Dixon, said he was confident the council would win the dispute, and accused Coun Scott of electioneering.

“It is the usual tactic for a contractor who knows there is no more money in the kitty and they’re not going to get any more money out of us,” he said.

“If they think they’re going to get another contract from us, they will negotiate fairly.”

Coun Williams said: “I think it is absolutely outrageous.

The contractors are behaving like greedy bankers.

“I am confident our officers will robustly defend the council against this.”

Councillors were also reassured if the council has to pay the bill, money would not be used from funds already committed to rebuilding other Darlington schools.