Somerset Council’s chief executive, Duncan Sharkey, has publicly acknowledged significant mistakes in handling the regeneration of Glastonbury’s Life Factory project. Once a derelict site on Morland Road, the Red Brick Building was set to be transformed into a vibrant community events space and offices as part of the £23.6 million Glastonbury town deal.
However, concerns over the project’s management led the council to pause funding in January 2024. The South West Audit Partnership’s scathing review in May 2025 revealed major governance and oversight failures. Adding to the turmoil, Beckery Construction Company Ltd., contracted to deliver the £2.89 million project, collapsed into liquidation in November.
An audit by Grant Thornton uncovered that Somerset Council had continued payments totaling £420,000 during the funding pause. The council explained these funds were allocated to apprentice wages and maintaining the building’s condition. Despite this, many local suppliers remain unpaid, prompting significant distress among those who trusted the council’s accountability.
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Resident Brenda Orr highlighted the impact, stating: “Local businesses have acted in good faith, yet remain unpaid months after the project’s failure. The council’s inadequate governance and financial management have had real-world consequences, risking cash flow for local suppliers, eroding community trust, and damaging the council’s reputation.”
Grant Thornton’s report issued three statutory ‘red cards’ against the council, with one directly tied to the Life Factory. Key findings included inadequate governance, poor risk management, inconsistent payment processing, and limited oversight of completed work. The project’s inability to secure match funding also posed a critical threat to its viability.
Sharkey admitted the council had not invested enough effort in the project’s basic financial and procedural management, especially given the town deal’s emphasis on community-led initiatives. Questions arose about whether the 2023 reorganisation that created the new Somerset Council contributed to the problems, with officers and advisers leaving critical knowledge gaps.
Interim chief financial officer Clive Heaphy stressed the need to master the role of accountable body moving forward, emphasizing learning from mistakes and reinforcing fundamental processes. Councillors across party lines called for transparency, accountability, and a clear timeline to resolve outstanding payments to local businesses.
However, Sharkey clarified the council’s legal limitations, noting it cannot directly compensate contractors owed money by third parties involved in the liquidation. Affected businesses must pursue claims through the liquidators.
Further challenges remain, as two other projects within the town deal received “red-rated” status—one lacking planning permission and another suffering cost overruns. Discussions on these issues and the broader Life Factory failures are scheduled for upcoming council and audit committee meetings, with a promised public report detailing lessons learned.
Somerset Council’s admission of fault marks a crucial step toward restoring community confidence and improving future oversight of regeneration initiatives.