Westmorland and Furness Council continues to insist that £3 million of Levelling Up funding for the redevelopment of Penrith Town Hall is “safe”, even though the council’s own tender for the project has been cancelled and a key internal deadline has already passed.

The £3 million is part of a £7.09 million Levelling Up allocation originally secured by the former Eden District Council for a business hub at Stoney Beck. That project never progressed after Government initially rejected the bid, and the Junction 41 site was sold in the meantime. The council confirmed: “By that point and following the original funding refusal, the Junction 41 site had been sold to a developer. It is now being marketed as ‘Penrith 41’ and is coming forward for commercial development independently.”

When the Government later awarded the money in the 2023 Autumn Statement, the original scheme was no longer possible. The council says it entered “urgent discussions” with officials to redirect the funding into two new Penrith projects: a £4.09 million enterprise hub in the former Barclays Bank building, and a £3 million creative and community hub in the Town Hall.

A Westmorland and Furness Council spokesperson said "Due to a limited timescale to put forward a proposal, the council followed the MHCLG's Project Adjustment Request guidance, in consultation with Cabinet Members, and undertook the appropriate change-control processes to propose two viable and deliverable projects."

"This swift action ensured this vital investment was secured which includes £4.09 million for a new town centre enterprise hub and £3 million to create a community and creative hub at Penrith Town Hall."

"Both projects strengthen the original vision and objectives, allowing communities and businesses to benefit from investment by bringing back into use two vacant prominent buildings in the heart of the town."

The council advertised a tender for the works in October, but cancelled it on 7th November, stating it would be readvertised in the New Year. Council documents show the council had a deadline for the tender to be advertised by 31 October 2025 — a date that has now passed without any valid tender in place to deliver the town hall project in the government set funding deadline.

The council insists preparatory work can continue. The council spokesperson said: “There are a number of essential works required as part of bringing the building forward for reuse that we can progress without impacting on the development of the design through our engagement with the community. This resequencing of works will allow us to maintain the momentum required to meet the LUF deadline of March 2028.”

Further questions have been raised with Financial report being presented to councillors this week that include detail's of Levelling Up Funding updates for Barrow and Kendal but make no mention of Penrith and the Penrith’s Town Hall project or the Penrith Business Hub. The only Penrith item listed in the report is the carrying forward of £460,000 ringfenced in 2022 by the former Eden Council for an earlier Town Hall redevelopment plan as part of its project Voreda House planning.