The High Court has ordered Cornwall Council to repay more than £2.1 million in European Regional Development Fund support after finding procurement breaches around the award of a bridge contract at Chiverton Cross.
Ruling finds breaches in how contracts were awarded
Judgment handed down by the court concluded the contract for a bridge over the A30 at Chiverton Cross was awarded without advertisement to Costain Jacobs Partnership (CJP), the firm already delivering the adjacent A30 dualling works. The Secretary of State for Housing, Communities and Local Government determined that failing to advertise the contract ran afoul of the relevant procurement rules.
In a separate finding, the council was criticised for a tender that included a requirement for Cornish sub-consultants. That invitation to tender—relating to a project management services contract paid at £10,500 to MWJV Limited—was judged discriminatory and to have placed bidders without established local networks at a disadvantage.
"The invitation to tender... included a requirement for Cornish sub-consultants, which the Secretary of State determined was discriminatory and in breach of equal treatment."
Council response and the funding authority's view
Cornwall Council said it was "extremely disappointed at the decision" and that it was considering "options for appeal." The council also emphasised that the ERDF bid had set out its procurement strategy and that the work had been supported by the Ministry of Housing Communities and Local Government (MHCLG) team at the time.
The council noted that ERDF-funded projects are subject to scrutiny and audit, citing an MHCLG audit in September 2023 that it says found no issues with its procurement approach. The council maintained it believed the funding was spent appropriately and in line with processes to deliver the scheme within timeframes set by MHCLG acting as fund administrators.
What the ruling means in plain terms
- Repayment: More than £2.1 million of ERDF support must be repaid.
- Procurement practice: Contracts must be advertised in line with procurement rules to ensure fair competition.
- Local preference: Requiring Cornish sub-consultants in tenders was judged discriminatory and unfair to bidders without local networks.
The Hon. Mrs Justice Steyn dismissed Cornwall Council's challenge to the decision requiring repayment of the ERDF funds. The judgment underlines enforcement of procurement law and the conditions attached to European regional funding.
Local implications and wider context
Although the scheme relates to the A30 improvement works and a specific bridge at Chiverton Cross, the ruling carries wider implications for local authorities contracting work funded by regional or national programmes. Public bodies that apply for grant support need to follow procurement rules precisely to avoid clawbacks of funding and legal challenges.
For Cornwall residents, the decision raises questions about how local contracts are awarded and who benefits from public works. It also highlights the potential financial consequences for councils when procurement rules are not followed to the letter—outcomes that can affect council budgets and future projects.
| Item | Detail |
|---|---|
| Contract site | Bridge over A30 at Chiverton Cross |
| Contractor | Costain Jacobs Partnership (CJP) |
| Funding at issue | European Regional Development Fund (ERDF) |
| Repayment required | More than £2.1 million |
| Discriminatory tender value | £10,500 paid to MWJV Limited |
The council's stated intention to consider appeal options means the matter may yet proceed further in the courts. For now, the ruling stands as a reminder to local authorities of the legal and financial risks tied to procurement processes, especially when public or externally sourced funds are involved.
Residents and local businesses seeking clarity about future procurement and opportunities may look to Cornwall Council for further details on the ruling's impact and any steps the authority will take to review procurement practices and safeguards.
