£90k already spent as Penrith business hub faces likely cancellation under council review

£90K of funding handed to council for planned business hub in Penrith’s former Barclays Bank building that is expected to be scrapped as Westmorland and Furness Council prepares to consider the future of the Inspiring Eden regeneration projects next month.

The scheme forms part of the £7.09 million Inspiring Eden project, originally awarded to the former Eden District Council and now delivered by Westmorland and Furness Council.

The programme has already been reprofiled by the council last year with government approval, moving away from a controversial business hub proposal between junction 41 and Stoneybeck roundabout and instead focusing on two Penrith town centre projects: a proposed business hub in the former Barclays Bank building and the redevelopment of Penrith Town Hall as an arts and cultural venue.

The business hub element is now understood to be under threat of cancellation, with revised proposals expected to be brought before Cabinet in June that could see it removed from the delivery programme due to ongoing increased costs associated with the delivery of the business hub in a building the council would be renting.

Despite no significant development with either project, Council figures show that as of 31st March 2026, £1,827,700 has been received for the programme from government, with £90,980 already spent by the council.

While the final decision will be made by the council leaders meeting in June the Penrith business hub is unlikely to proceed, with focus shifting towards the Town Hall scheme if funding remains available to the council for delivery.

A Westmorland and Furness Council spokesperson said:

“A final decision on the direction of the Inspiring Eden Levelling Up Fund project in Penrith will be taken at June's Cabinet meeting. No decisions have been taken on the future of either of the schemes which currently make up the project.

As the Levelling Up Fund has now been folded into the new Local Regeneration Fund, the Council has delegation to make decisions regarding the usage of this funding without needing approval from Government. Updated guidance from government allows for greater local freedoms and flexibilities aimed to increase the efficiency and effectiveness of the funding and a paper regarding revised governance arrangements for the Fund is due to be considered by Cabinet on 2 June.”