Red Brick Building in Glastonbury Faces Closure After Life Factory Scandal

The Red Brick Building in Glastonbury may face closure after the Life Factory regeneration project failed to meet its objectives. This development has led to significant financial and operational challenges for the building, which has long served as a vital community hub.

Apology and Lessons Learned

On December 9, the chief executive of Somerset Council, Duncan Sharkey, publicly apologised for the missteps made during the Life Factory project. The initiative saw £2.89 million in public funds invested in transforming part of the Red Brick Building on Morland Road into a space for community events, offices, and other facilities. However, the project did not achieve its intended outcomes, leading to criticism from various stakeholders.

A 'lessons learned' report was released following a thorough audit by Grant Thornton. Local Conservative councillor Susannah Hurt has urged the council not to waste further public money on any attempts to salvage the project. The council's actions have sparked concern among residents and local businesses who rely on the building for their operations.

Financial Struggles and Potential Closure

The board of the Red Brick Building has revealed that the facility may have to close due to the financial strain caused by the Life Factory project. The board stated that the crisis has left them "financially exposed" with limited reserves remaining.

In a lengthy statement published on its official Facebook page on December 22, the board addressed what it called "misinformation" and "sustained negative and often inaccurate media coverage" about its situation. The statement outlined the steps taken to address the issues and the potential consequences of the building's closure.

Background of the Red Brick Building

Before the Life Factory project, the Red Brick Building was described as a "thriving community hub." It offered a range of facilities, including an active community garden, a "thriving" youth club, office spaces for local businesses, and a popular café and restaurant. The building was considered "vibrant, financially stable, and operating confidently within its organisational capacity," which helped secure the Life Factory funding from the Glastonbury town deal.

The Red Brick Building and the Life Factory project shared a common board of directors but operated independently in terms of day-to-day activities, staffing, and budgets. The board acknowledged that oversight and decision-making were not as strong as they should have been from the start. These concerns were initially raised with Mendip District Council and later with Somerset Council, which became the 'accountable body' for the project in April 2023.

Financial Impact and Challenges

Funding for the Life Factory project was paused by Somerset Council in January 2024. However, the Grant Thornton audit revealed that an additional £420,000 was paid after this date to compensate apprentices and ensure the adjoining wall between the Red Brick Building and the Life Factory was sound. During this funding pause, the Red Brick Building had no choice but to use its existing reserves to pay Life Factory staff and contractors for work already completed. This decision left the building "financially exposed," creating pressure on existing staff and making it difficult to generate income to replenish its exhausted reserves.

The Life Factory crisis contributed directly to the Red Brick Building losing its anchor tenant, The Old Tannery restaurant, further reducing income. The board also mentioned the council's decision to issue a "clawback request" for just under £2.3m of grant funding spent on both the Life Factory project and the neighbouring food and regenerative farming centre project, both of which were formally terminated in November.

Community Impact and Recovery Efforts

The news of the potential clawback request, combined with sustained negative and often inaccurate media coverage, has had a devastating effect on the existing community centre. The board reported losing key tenants, having to navigate cancelled bookings and events, and being forced to halt future plans, further reducing income at a time when the organisation is already under extreme pressure.

The board said it does not have the financial capacity to repay this sum and has been preparing for the possibility of insolvency. Closure would displace existing small businesses and social enterprises, along with staff and volunteers, and impact community groups that regularly rent the premises for meetings.

Ongoing Investigations and Future Plans

The board noted that the lengthy investigations into the Life Factory project, coupled with unfounded rumours of "financial impropriety," have caused significant distress, eroded morale, and damaged the organisation's reputation at a time when it most needed community support. Despite these challenges, the board has developed a fully-costed recovery plan, including an approved emergency funding package.

This plan could enable the existing community centre to stabilise and rebuild, allowing it to repay debts accrued as a direct result of pressures from the Life Factory project. However, timing is critical. The board's final hope rests on the conclusion of the independent financial assessment and on Somerset Council choosing to act in the best interests of the community.

Council Response and Next Steps

The board hopes that the council will not enforce the full clawback request, will implement its recovery plan, and will secure the land for the regenerative farming centre project, enabling it to restart when circumstances have stabilised.

Somerset Council has stated that it has taken steps to recover the money associated with the Life Factory project and will continue discussions with the Red Brick Building's board in the new year. A spokesperson said: "We have lodged a claim with the Red Brick Building Centre Ltd. to recover the public money that was allocated, as we have a legal duty of best value with which we must comply."

Final Thoughts and Community Support

The council is working at pace with the Red Brick Building Centre board to understand their financial position and sustainability and the implications of any recovery action, in all its aspects. Once an agreement is reached, the council will be able to determine any potential next steps.

The situation highlights the importance of transparency, accountability, and community support in such challenging times. As the community awaits the outcome of the independent financial assessment, there is a growing sense of urgency to find a solution that preserves the vital role of the Red Brick Building in Glastonbury.