The future of plans to transform Kendal with the help of Government backing is unknown as Whitehall has yet to recommit the cash.
Westmorland & Furness Council’s Heart of Kendal scheme was provisionally offered £13.4 million by the previous government as part of Levelling Up, but authority bosses say there has been no confirmation that the money is still available.
It said there had been no further assurance about the funding from the new government formed after the General Election in July.
Jonathan Brook, leader of Westmorland and Furness Council, said: “Our commitment to supporting communities to be confident, empowered and resilient is typified by projects such as this.
“Markets are a much-valued part of our historic towns and play an important role in our communities, beyond just retail, so I am delighted with this progress and excited to see a refreshed Market Hall contributing to the vitality and sustainability of Kendal town centre.
“We are frustrated to have done so much work progressing the wider Heart of Kendal scheme after being provisionally offered that funding by Government in November, only for there to be a lack of confirmation on the funding since the new Government came into power.
“I have written to Angela Rayner, the Deputy Prime Minister and Secretary of State for Housing, Communities and Local Government, asking for clarity.
“I told her that Westmorland and Furness is experiencing a stark loss of its younger people and an alarmingly ageing population, and that programmes such as Heart of Kendal are part of our transformative approach to tackling these demographic challenges, in ensuring that there are attractive employment, educational and entrepreneurial opportunities for our young people, offering real change in areas where they are needed.
“We understand the challenges facing the new Government but it is critical that we know where we stand.”
The council has agreed to press ahead with initial work on Kendal Market Hall, paid for by the Government’s Shared Prosperity Fund.
It was awarded £840,126 from the fund to carry out perimeter wall repairs, roof repairs and an internal fit-out and redecoration of the market.
That work is due to start in December and will take around four months.
The council decided to press on with the work as the Shared Prosperity Fund spending deadline is next March.
Mr Brook added: “In the meantime, our planned work funded by UK SPF will bring great benefits to Kendal and be carried out in such a way that they can be developed and enhanced if further funding is confirmed.”
It said discussions have taken place with traders to explore their options while the market hall was closed, and support packages made available to traders to support them through the project and temporary market closure.
A series of engagement sessions are planned this month and next to encourage market shoppers and users to speak with the council about what they would like to see from the newly-refurbished indoor market.
The bid to round 3 of the Government’s Levelling Up Fund for £13.4m for the Heart of Kendal scheme to regenerate Kendal Market Hall and projects to enhance the public realm on Market Place, create a new campus for Kendal was initially declined by Government in January 2023.
Following this a project based on elements of the LUF bid to refurbish the Market Hall only was awarded £750,000 from the UK Shared Prosperity Fund by the council’s Investment Board in September 2023.
In November 2023, the LUF Round 3 Heart of Kendal bid was reappraised and subsequently provisionally awarded by Government at short notice.
Following review of the LUF bid costings it was determined that the £750,000 UKSPF award would be repurposed to act as match funding for LUF.
Additional UKSPF funding of £64,454 was also secured, taking the total amount to £814,454 UKSPF plus the £4.17m provisional LUF award for the Market Hall.
