A flagship project to transform the former Barclays bank in Penrith town centre into a £4 million enterprise hub looks likely to be shelved.
Meanwhile, a parallel plan to repurpose Penrith’s former town hall into an arts and culture centre at an estimated cost of £3m now appears to be the Westmorland and Furness Council’s favoured option, and may absorb the majority of the total £7 million allocated government cash.
A final decision on the direction of the authority’s Inspiring Eden project, which encompasses both Penrith schemes, will now be taken at meeting of Westmorland and Furness Council’s cabinet in June.
The Ministry of Housing, Communities and Local Government approved the £7.09m of Levelling Up funding – now called the Local Regeneration Fund – for the project, which included the enterprise hub on Market Square and a Creative and Community Hub in Penrith Town Hall in May last year.
Options had been scheduled to be presented to Westmorland and Furness Council’s cabinet on April 21 for final decisions, taking into account the amount of extra funding the council would need to contribute for each option.
Stakeholders were briefed this week about what were described by the council as viability challenges to the Eden Enterprise Hub project which have emerged since the funding approval nearly a year ago.
A statement from Westmorland & Furness Council said: “The financial landscape has changed dramatically and the council faces difficult financial challenges as a result of the Government’s Fair Funding Review, alongside the impact of rising costs and growing demand for services.
“Due to revenue pressures associated with the 2-3 Market Square building, the hub project would likely require significant ongoing subsidy and support from the council. As a result, cabinet will need to carefully consider the sustainability challenges on Tuesday June 2.”
The statement added that if the Enterprise Hub scheme was axed, the money saved would be redirected to alternative projects that would deliver the greatest benefit for the town.
Meanwhile, the Penrith Town Hall project to transform the Grade II-listed building into a community and creative hub would continue as before.
The statement added: “This would continue to be informed by engagement carried out last September which invited residents, community representatives and creative partners to help co-create a future vision for the building.
“It successfully gathered views on what services, facilities and activities people would like to see hosted here.”
Along with the £3 million earmarked from the Government’s Levelling Up Fund, an additional £500,000 is currently allocated within the Town Investment plan through the Borderlands Place Programme to fund the transformation.
“Given the significant capital investment required to deliver on community ambitions for the town hall project, if a decision is taken not to proceed with the enterprise hub, then consideration will need to be given about using some of that funding to support the town hall project by cabinet in June.”
A spokesman for Westmorland and Furness Council said: “The council is committed to transforming Penrith Town Hall into a venue that will celebrate its history as a civic landmark and reimagine its role for the future, as a thriving creative and community space.
“We are also fully committed to supporting Penrith town centre and the local business community.
“In the midst of a rapidly changing and uncertain financial and economic landscape, we are carefully considering the future of the enterprise hub project.
“Whatever the outcome, we will continue to work closely with our partners and local businesses, to ensure that investment delivers positive benefits for Penrith and supports the shared vision for the town’s future.”
