TWO major, multi million-pound Glastonbury regeneration projects have been terminated amid reports highlighting poor financial management – and oversight – by the groups involved.

New documents confirm Somerset Council has terminated both the Life Factory and Glastonbury Food and Regenerative Farming Centre projects, after audits of the schemes were critical of financial management and oversight.

As a result, the council is seeking to recoup £2.4 million from the Red Brick Building Centre Ltd, which took the grant money for both projects.

Somerset Council has also referred management of the Life Factory project to the police, who are investigating to see if any criminal behaviour took place.

Now, a report into ‘lessons learned’ by the council – which was responsible for overseeing how the money was allocated and spent – has highlighted several areas of concern for the authority, including a ‘churn’ of staff managing the scheme, and a lack of control over the scheme’s management.

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Glastonbury received more than £23.5 million from the UK Government’s Towns Fund initiative in 2021, with 11 projects initially identified for funding – The Life Factory and GFFRFC among them – both to be delivered by the Red Brick Building Centre Ltd through separate grant agreements.

The Life Factory aimed to convert a derelict former factory building into a community space, offices and youth facilities, while the farming centre was set to become a hub of best practice for regenerative local farming.

However, in January 2024, Somerset Council froze funds to the Life Factory amid claims those in charge could not “adequately reconcile invoices” in grant claims with the actual spend and progress on site.

An independent audit later found a lack of control over how grant money was being sourced, or spent by the Red Brick Building Centre Ltd, which was the ultimate responsibility of the council.

Somerset Council was also issued a ‘statutory recommendation’ – an order to address issues raised – over the scheme.

Among findings by the audit was that the council “took too long to suspend the project when it clearly had not met the fundamental conditions associated with the grant”.

In the ‘lessons learned’ document, the council outlines a host of steps taken to address the issues highlighted, as well as seeking repayment of funds spent incorrectly – £2.29m from the Life Factory and £115,715 from the Glastonbury Food and Regenerative Farming Centre.

While there were “no issues” with the delivery of the farming centre, Red brick Building ltd was responsible for the funding.

The council’s ‘lessons learned’ document – and the independent audit – said control over spending plans, costings and procurement rules was not strong enough, added to by the change to Somerset Council in 2023, which saw managers leave, move, and the project ‘drift’ into difficulties.

Responding to the report, chief executive of Somerset Council Duncan Sharkey, said: “We take the findings of the independent audit very seriously alongside our role as accountable body in these matters.

“We recognise that there were failings in the past and we need to make improvements. We have already taken a wide range of actions, and we will continue to embed stronger controls and governance to ensure public funds are managed responsibly and future projects deliver maximum benefit for Somerset communities.”

Meanwhile, the demand for repayment has left Red brick Building Centre Ltd facing the “very real possibility of insolvency”, the board said.

“Red Brick does not have the financial capacity to repay this sum,” it said.

“The Board is therefore preparing for the very real possibility of insolvency. An emergency independent financial assessment is currently under way.”

Meetings with the council are taking place, the board said, with a recovery plan laid out.

After concerns were raised over the projects, the leadership team at Red Brick Building Centre Ltd has undergone a number of changes, with subsidiary – Beckery Construction Company – put into voluntary liquidation last month, with dozens of creditors saying they have not been paid for work on the Life Factory.

“There have also been rumours circulating regarding financial impropriety,” the Red Brick Building Centre Ltd board added.

“We can confirm that no staff, trustees, or directors of Red Brick have been approached about any investigation into this.”

The findings are to be discussed at a Full Council meeting tomorrow (December 17).

READ MORE: Glastonbury news from your Somerset Leveller