The Red Brick Building in Glastonbury is at risk of closing after the collapse of the Life Factory regeneration project, which saw nearly £3 million of public funds fail to deliver the intended community transformation.
On December 9, Somerset Council chief executive Duncan Sharkey issued a formal apology for errors related to the Life Factory initiative. This project aimed to revamp part of the Red Brick Building on Morland Road into a multifunctional space for community events, offices, and other facilities but ultimately did not succeed.
Following a critical audit by Grant Thornton, the council released a ‘lessons learned’ report. Meanwhile, local Conservative councillor Susannah Hurt urged caution, emphasizing that no more public money should be wasted trying to “salvage” the failed project.
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Now, the Red Brick Building’s board has stated that the financial fallout has left the organisation vulnerable, with limited reserves remaining, raising the prospect of closure.
In a detailed Facebook statement on December 22, the board responded to widespread “misinformation” and “inaccurate media coverage” about its state. It explained that an independent financial review is underway alongside crucial council meetings to determine if the community hub can continue operating or must shut down.
The board pointed out that confidentiality agreements had previously prevented them from speaking out but, after a council member’s visit on December 8 to meet with affected staff and tenants, they felt compelled to clarify the situation publicly. Many tenants now face losing their workspaces and livelihoods.
The centre had long been a vibrant community hub, featuring a community garden, a popular youth club, office space for local businesses, and a café and restaurant. Prior to the Life Factory project, the Red Brick Building was financially stable and well-managed, helping it secure initial funding.
Although the Red Brick Building and Life Factory shared a board of directors, they operated independently day-to-day. However, oversight and decision-making weaknesses were present from the start and were flagged to Mendip District Council before Somerset Council took over as the accountable body in April 2023.
After Somerset Council paused funding for Life Factory in January 2024, an unexpected £420,000 payment was made to cover apprentices and stabilise structural issues. During this pause, the Red Brick Building had to use its reserves to pay staff and contractors, leaving it financially exposed and straining its resources.
The crisis led to the loss of The Old Tannery restaurant, the building’s anchor tenant, further reducing regular income. The Board cites a final blow when the council demanded a clawback of nearly £2.3 million in grant money spent on the Life Factory and the adjoining food and regenerative farming centre projects, both terminated in November.
This clawback request, coupled with negative media attention, has devastated the community centre—resulting in lost tenants, cancelled events, halted plans, and drastic income reductions. The board admits it lacks the funds to repay and is preparing for possible insolvency.
Closure would displace small businesses, social enterprises, staff, and volunteers, as well as disrupt community groups meeting at the venue. These groups include mental health support networks, local musicians, and heritage project participants.
The board noted that prolonged investigations and unfounded rumours of financial misconduct have deeply harmed morale and reputation, precisely when community backing is most critical. Despite the challenges, a fully costed recovery plan and emergency funding package have been developed to stabilise and rebuild the centre.
The board’s hope now depends on the independent financial assessment and Somerset Council’s decision to act in the best interest of Glastonbury’s community. They urge the council not to enforce the full clawback, to support the recovery plan, and secure land for future regenerative projects.
Somerset Council confirmed it is pursuing claims to recover public funds but is working closely with the Red Brick Building board to understand the financial realities and consider the implications of recovery actions. Further discussions are expected in the new year.