Penrith Enterprise Hub falls victim to rising costs
Plans to convert the former Barclays bank off Market Square are likely to be shelved due to “revenue pressures”, Westmorland and Furness Council has said.
The scheme was one element of a two-part Penrith initiative that also includes transforming the town hall into a creative and community hub.
Westmorland was awarded £7m from the government for the Enterprise Hub and the town hall scheme but is likely to decide in June to shelve the former and focus time and funds on the latter.
Viability challenges have emerged since the funding award; rising costs, the impact of the government’s Fair Funding Review, and the global financial landscape have all made the project more difficult to deliver.
A statement from the council said: “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 2 June.”
If the Enterprise Hub is shelved as expected, the council said it would request permission to use money allocated to the scheme to support other Penrith regeneration priorities, including the refurbishment of the grade two-listed town hall.
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.”
