ICSM Insolvency News: creditors left with unpaid invoices after funding for a local authority regeneration project in Glastonbury is paused with questions raised over the way its finances were handled

By Harry Mottram: A council backed project in Glastonbury jointly funded by Somerset Council and the Government through a deal with the town council to create a community space at The Life Factory in the town’s Red Brick Building Centre – a former industrial complex – has hit the rocks due to concerns over the way its finances have been handled. Somerset Council have pumped hundreds of thousands into The Life Factory – but have paused funding when their South West Audit Partnership (SWAP) report said accounting procedures were effectively not up to the job.

The resulting freeze has left contractors to The Life Factory with unpaid invoices totalling hundreds of thousands of pounds – mainly building and related firms who were engaged to transform the derelict buildings into a space for start-ups, community groups and a space for young people - were left high and dry. Funding from the Government via the Glastonbury Town Deal and also Somerset Council – both pitching in more than £2m each – had been drawn down by the Glastonbury Town Board – but there appears to have been little scrutiny of where the money was going.

Somerset Confidential – an online independent news group – reported that the chair of the Glastonbury Town Board was Dr Lynne Sedgmore, CBE, who had declared an interest in the project as: “Her husband, John Capper was a director of both the Red Brick Building, the organisation due to deliver the Life Factory and Beckery Construction Limited, a new company set up by the Red Brick Building to do the work on behalf of the Red Brick Building.” It appears on the face of it that basic accounting procedures were not adhered to - with one example being that employees did not have contracts and time sheets were not properly kept - as reported by Somerset Confidential. Add to that a lack of accountability from some involved in the administration of the funds and something has gone wrong - and the project is frozen.

Ian Carrotte of ICSM said that sometimes when there are conflicts of interest and when local authorities get involved in commercial projects things can go wrong. He said in this instance there are questions that need answers - especially for the contractors who are out of pocket. ICSM understands that one contractor is owed about £380,000 while others are owed tens of thousands with no answers coming from The Life Factory as to when they will be paid –if ever. Meanwhile Somerset Confidential have noted that The Red Brick Building Centre’s accounts were not filed and that the chair of the Glastonbury Town Board has resigned. The BBC’s Michelle Ruminski reported that seven months after funding was paused in December 2024 around 15 contractors haven’t been paid.

For more from Somerset Confidential on the subject visit: https://somersetconfidential.substack.com/p/lifeless-factory

For more from the BBC on the subject visit: https://www.bbc.co.uk/news/articles/ckgr5n08g02o

Harry Mottram is a freelance journalist. Visit: https://www.harrymottram.co.uk/

+++++++++++++++++++++++++++

ICSM CREDIT
For information on ICSM visit www.icsmcredit.com or call 0844 854 1850.
ICSM, The Exchange, Express Park, Bristol Road, Bridgwater, Somerset TA6 4RR. Tel: 0844 854 1850.

Ian Carrotte is the CEO of ICSM - a business membership group dedicated to preventing late payment and bad debts. Ian.carrotte@icsmcredit.com