Council reviews projects after previous 'mistakes'

A council said it was reviewing all projects where it looked after money on behalf of organisations after "mistakes" were made over a £2.9m government-funded factory regeneration.

Somerset Council's chief executive Duncan Sharkey told an audit committee the authority "got it wrong" with its financial oversight of the stalled Life Factory project in Glastonbury.

"The processes weren't strong enough," he said. "What we need to do is have less chance of getting things wrong again in the future and give us the best possible chance to improve."

Work to create a community space at the site was paused in 2024 after the council had concerns about its progress.

Mr Sharkey added: "All we can do is try not to make the same mistakes again."

Council finance director Clive Heaphy said he had ordered an audit of all the other projects where Somerset Council was the accountable body to make sure the authority was not replicating mistakes made on the Life Factory.

Being an accountable body means the council looks after funding allocated to other local projects, often from the government.

The derelict former factory block, 'Building C' of the Red Brick buildings, was meant to be transformed into a community events space, offices and other facilities, called the Life Factory.

Building work had started but payments were paused by the council in January 2024 after concerns were raised.

It was one of 10 projects awarded a total of £23m of government funding under the Glastonbury Town Deal.

Mr Heaphy said Glastonbury was the only one of 101 similar town deals across the country where he was aware such problems had occurred.

"Council are accountable bodies for lots of things – it's not that complicated a role, we need to get the basics right," Mr Heaphy said.

Conservative councillor Sue Osborne told the meeting a further town deal project, Glastonbury Food and Regenerative Farming Centre, was also at risk.

She was told this would be discussed at a different meeting in future.

A construction firm called Beckery Construction Company Ltd (BCC), set up by the Red Brick Building Centre to deliver the Life Factory, was put into voluntary liquidation in early November.

Its statement of affairs showed, as of 3 November, it had assets of £4,800 and 26 creditors, to which it owed £686,259.

The audit committee heard the council was not responsible for paying those contractors owed money as they had separate commercial contracts held with BCC, not directly with Somerset Council.

Mr Sharkey said the council had paid any contractors it owed money to but couldn't "legally" make payment to organisations it "had no relationship with - nor is it allowed for us to settle debts for other companies".

Conservative councillor Mandy Chilcott said she did not believe the financial risks of taking on such work would have been appreciated by contractors as "they would have thought it was a council-backed contract that came with an element of protection"

"They are our people, they are in Somerset and I'm sure we all care very deeply about them," she said.

Follow BBC Somerset on Facebook and X. Send your story ideas to us on email or via WhatsApp on 0800 313 4630.