Funding for the Glastonbury regeneration project, specifically the redevelopment of The Red Brick Building, has been suspended indefinitely following an independent audit that uncovered serious financial irregularities. Somerset Council, responsible for overseeing the £23.6 million Glastonbury Town Deal, may also seek repayment of funds already disbursed.
The Red Brick Building, situated off the A39 Street Road, is central to the £23.6 million regeneration scheme which aims to transform the derelict ‘Building C’ into a vibrant community events space, office facilities, and more. Known as the Life Factory project, it has faced significant challenges over the past 18 months, including reports of unpaid local contractors. Currently, construction has stalled with Building C left unfinished, lacking a roof and any clear timeline for completion.
Somerset Council, as the accountable body for the Town Deal funding, raised concerns in late 2023 regarding the project’s financial management. Consequently, in January 2024, they paused all further payments while collaborating with the Board of the Red Brick Building to develop a feasible plan to bring the project back on track.
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The council revealed that they were unable to reconcile submitted invoices with actual expenditures and progress in line with the Grant Funding Agreement. Due to these discrepancies, the project was referred to the South West Audit Partnership for an in-depth audit addressing governance, financial controls, and value for money.
Audit findings report over £2.89 million has already been spent; however, the project does not comply with the funding agreement and its completion remains uncertain. This non-compliance puts the Red Brick Building at risk of having to repay the funds spent to date.
Somerset Council Chief Executive Duncan Sharkey stated, “The audit has confirmed our concerns about this project. While we paused payments and initiated an audit promptly, it is clear our oversight could have been stronger. The audit also highlights several control failures by the Red Brick Building management.”
Sharkey added, “We believe these issues are unique to this project and have immediately commenced a review of management processes for other infrastructure projects within the Glastonbury Town Deal. We remain confident those are being managed effectively.”
Although Somerset Council is not contractually liable for payments to contractors on the Life Factory project, they acknowledge the hardship caused to local businesses with outstanding claims. Nevertheless, no additional funds will be released until a clear and viable way forward is established.
The council continues working alongside the Red Brick Building board and the Glastonbury Town Deal Board to determine the next steps while further audit investigations are underway.