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Pembrokeshire Herald

24-04-2025

Council secures grants to cover project overruns without increasing taxpayer burden
TWO major regeneration projects in Haverfordwest are set to progress without additional cost to the taxpayer, following Pembrokeshire County Council's successful acquisition of external funding.​
A report scheduled for Cabinet review on Monday (April 28) outlines that the Heart of Pembrokeshire (HoP) and Western Quayside schemes will benefit from new grants, allowing the projects to continue despite unforeseen challenges and increased costs.​
The HoP project, with an approved capital budget of £26.27 million, and the Western Quayside scheme, budgeted at £11.62 million, faced combined overruns nearing £4 million. These overruns were primarily due to the deteriorated condition of the historic Gaol building and archaeological constraints. However, additional support from the Welsh Government and the UK Shared Prosperity Fund will cover these costs without increasing the Council's financial contribution.​
Significant new grants secured
The Council has secured an extra £2.7 million from the Welsh Government's Transforming Towns Fund and £1.26 million via the UK Shared Prosperity Fund. These funds will facilitate green infrastructure works at Western Quayside and enhance pedestrian links between Haverfordwest Castle and the town centre.​
To meet grant requirements and streamline project accounting, some elements initially delivered under the HoP scheme—such as public realm work around the Foundry—will be reallocated to the Western Quayside project.​
Further applications are being prepared to secure additional funding from the Transforming Towns programme. If successful, these would support a post-HoP 'fit-out' of the castle site, improve town centre wayfinding, and enhance visitor experiences, all without extra cost to the Council.​
Castle and Gaol restoration separated
While the HoP scheme is well underway, the Council plans to separate the later-stage restoration of the Gaol and Governor's House into a distinct project. This £2 million fit-out scheme has already received £368,525 in National Lottery Heritage funding, with further bids in progress. The Council aims to reduce its match funding requirement significantly.​
Separating the HoP and the Castle Fit-out projects within the capital programme is expected to provide clearer financial transparency.​
Criticism over project management
Despite the financial boost, the Council faces criticism for initiating restoration work on the Gaol without secured funding for its completion. Critics argue that this approach was premature and risky, especially given the building's deteriorated condition and archaeological complexities. This has raised questions about project management and financial planning.​
The broader context includes significant funding cuts to Pembrokeshire County Council, with a reported reduction of over 40% in Shared Prosperity Scheme funding. Such cuts have intensified scrutiny over the Council's allocation of resources, particularly in light of other pressing needs across the county.​
Council Leader Jon Harvey, who succeeded David Simpson in May 2024, has pledged to bring 'compassion and transparency' to the role and to work collaboratively with other political groups. However, the decision to proceed with the Gaol's restoration without secured funding for its completion remains a contentious issue, highlighting the need for transparent and comprehensive financial planning in public projects.​
Two options on the table
Cabinet members will consider two options. The preferred route is to accept the new external funding and reallocate budgets accordingly, delivering the full vision of both regeneration schemes while keeping the Council's capital contribution unchanged.​Pembrokeshire Herald
Alternatively, councillors could reduce their capital spending by using the new grants to offset current commitments. However, this would render the HoP project unviable, potentially forcing the permanent closure of Castle Back and risking clawback of up to £17.7 million from UK Government and National Lottery funders.​
A separate recommendation would grant senior officers the authority to adjust the budget if further external funding becomes available, provided the Council's own contribution does not increase.​
No legal or HR issues raised
The report confirms there are no legal or human resources concerns linked to the proposed changes. While the Director of Resources supports the plan, they caution that efforts must continue to reduce the Council's overall borrowing levels.