A final decision on the direction of the Inspiring Eden project in Penrith will be taken at a meeting in June of Westmorland and Furness Councils cabinet after a stakeholder briefing by the councils had thrown the future of the planned business hub in the former Barclays Bank into question with the plans expected to be scrapped by the cabinet in June.
The Ministry of Housing, Communities and Local Government approved £7.09m of Levelling Up funding (now called the Local Regeneration Fund) originally for a project designed by the former Eden District Council to build a business hub as part of the new business park at Stoneybeck roundabout, that project was scrapped by Westmorland and Furness Couhcil and a request made to government and to reallocate the funding to the councils project encompassing an Enterprise Hub at 2-3 Market Square and a Creative and Community Hub based in Penrith Town Hall in May last year.
Options had been scheduled to be presented to Cabinet at today’s meeting at Redhills for the final decisions, taking into account the amount of extra funding the council would need to contribute for each option.
Stakeholders had been briefed this week about viability challenges to the Eden Enterprise Hub project which have emerged since the funding approval nearly a year ago.
The councils 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, The Cabinet will consider the sustainability challenges at its meeting on Tuesday 2nd June.
If the decision is taken that the Enterprise Hub will no longer go ahead, the council will explore how the money allocated for the Enterprise Hub can be protected for other Penrith Regeneration priorities.
The council plans to work together with stakeholders to help identify and shape alternative projects that would deliver the greatest benefit for the town.
Meanwhile, if approved in June the Penrith Town Hall project that will transform the Grade II Listed building into a community and creative hub would continue if government funding continues to be available.
A total of £3 million was earmarked from the Government’s Levelling Up Fund, with an additional £500,000 currently allocated within the Town Investment plan through the Borderlands Place Programme to fund the town hall 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 subject to government approval of another change to the funding usage proposals by the council.
TheCouncil has said that moving the decision to June Cabinet will also allow further refinement of the town hall business case and to ensure that feedback from the community has been fully considered and appropriately reflected in the scheme proposals.
A spokesperson 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.”
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