AN independent audit into how almost £3 million was spent on an ill-fated Glastonbury project has revealed a litany of problems.

Controversy has surrounded the Life Factory project – part of the Glastonbury Town Deal project – which aimed to convert a “space for innovation, enterprise and creativity” in one of the former Beckery Village buildings, known as Building C.

Almost £2.9m was granted to the Life Factory project – of a total Town Deal budget of £23.6m – after Glastonbury secured funding from the government scheme in 2021.

Somerset Council oversaw the grant money and the rules around the agreement, along with nine other projects in the town.

However, after work began at the Morland Road site, problems emerged with funding – and how it was being managed by Red Brick Building Centre Ltd and subsidiary, the Beckery Construction Company Ltd.

In response, Somerset Council ordered an external, independent audit of the scheme’s finances be carried out.

And on Friday (May 16), the council announced it had frozen further funding for the project.

Ahead of a meeting of the council’s Audit Committee on Thursday (May 22), details of the audit has been published – revealing a raft of concerns over management of the scheme.

Findings from the audit, carried out by the South West Audit Partnership (SWAP), included:
* No detailed plans found to secure £2.89m of match-funding – a condition of the initial grant – were available
* No evidence discovered of a delivery plan on how the project would be “delivered within budget, scope and on time”
* HR processes “not followed” at Red Brick subsidiary, Beckery Construction Company
* “Financial controls such as budget monitoring, cash flow forecasting were not operating” for the project
* Accurate financial records were not kept and reports were not made to the council

The audit also concluded management of the project “could have been strengthened” at Somerset Council, with the decision to proceed with the scheme without match funding “a significant issue”.

Work to make the building watertight and safe has been completed. Picture: Glastonbury Town Deal

“The level of due diligence, management oversight and monitoring by Somerset Council could have been strengthened,” it said.

“The decision to continue with the project without match-funding in place is a significant issue, and we highlight the risk of claw back by the Ministry of Housing Communities and Local Government (MHCLG) if they conclude that the terms of the original grant award have not been complied with and outcomes not delivered.

“The majority of control weaknesses in delivery lie with The Red Brick Building and Beckery Construction Company.

“We have not seen a fully costed project plan and sufficient evidence of robust financial cost management against a costed project plan, nor adherence to the conditions in the grant agreement, such as procurement and value for money requirements.

“The management actions within our reports assume that sufficient funds will remain (although this now appears unlikely) to allow a reasonable options appraisal to be undertaken and secure the building to a reasonable outcome.

“Somerset Council must also retain 2.5% of the final grant payment, as per the grant agreement, to support ensuring any defects are made good especially given the decay in current work.”

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Last week, Somerset Council said it was freezing further funds for the scheme, as it considered next steps.

In response, the Red Brick Building Centre Ltd issued a statement on the situation.

It said: “We are deeply disappointed by the preliminary findings of the audit into The Life Factory project, whereby Somerset Council have stated that “no further funds will be released” and they believe that The Life Factory project “cannot be successfully delivered in line with the Grant Funding Agreement”.

“In early 2024, members of Red Brick Building Centre Ltd paused work on The Life Factory project and reported to Somerset Council concerns over Beckery Construction Company’s management of The Life Factory project.

“This triggered Somerset Council’s pausing of funds and the initiation of the audit. Since then, a new leadership team for Red Brick Building Centre Ltd has been working closely with Somerset Council and the Glastonbury Town Deal Board to address the issues identified and to seek constructive ways forward.

“We have been, and remain, committed to resolving the issues unearthed with The Life Factory project.

“The preliminary findings are sobering and reflect failings in financial oversight, governance, and project delivery across all parties.

“We recognise and accept that Red Brick Building Centre Ltd, under previous management, played a role in this outcome. But we also note Somerset Council’s acknowledgement that Somerset Council’s “level of oversight and monitoring of this project could have been strengthened”.

“It is clear that this was a collective failure.

“While we deeply regret that The Life Factory project will no longer be able to continue in its original form, we remain committed to learning from this experience and ensuring it is never repeated.

“We are deeply distressed by the impact Somerset Council’s decision will have on The Life Factory’s creditors.

“However, Somerset Council have informed us that, should an alternative viable plan for regenerating the derelict building come to fruition over the coming months, then the remaining funds could still be released.

“We now turn our focus to exploring potential avenues for this.

“We appreciate Somerset Council Chief Executive Duncan Sharkey acknowledging to us that he believes everyone at Red Brick Building Centre Ltd has done their very best to resolve this issue, and that he does not want the Red Brick Building’s current community centre to suffer because of this.

“As the public-facing branch of the Red Brick Building, it falls to us to deliver this statement to the public.

“We understand that there will be much reporting and speculation on this issue, but we feel it is important to stress that the existing Red Brick Building project (the operational community centre that you are all familiar with), has always worked separately from The Life Factory project.

“Our vibrant community centre continues to thrive and serve the community with great care, compassion and dedication.

“We are proud of the many vibrant and meaningful programmes running from our community centre, where we support creative, social, enterprise, educational and wellbeing initiatives for the local community.

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“The work of the operational Red Brick Building community centre is not a part of the issues raised in the audit, and remains a testament to what a well-managed, community-driven organisation can achieve.

“Red Brick Building Centre Ltd will continue to co-operate fully with all ongoing processes and support any appropriate next steps as determined by Somerset Council and the Glastonbury Town Deal Board.

“We await details of the upcoming full and completed audit, as well as the additional audit being carried out on Somerset Council.

“Above all, we remain committed to transparency, accountability, and rebuilding trust — with our partners, our funders and, most importantly, our community.”