Somerset Council’s Audit Committee met this week (9 December) to consider actions being taken in response to a statutory recommendation which has been made by auditors in relation to the Glastonbury Town Deal programme.
Our response builds on actions already taken which underscore the Council’s strong commitment to transparency, accountability, and good governance in managing public funds, while acknowledging past issues and applying those lessons to drive improvement.
The Glastonbury Town Deal, part of the UK Government’s Towns Fund initiative, allocated £23.6M to support regeneration, economic growth, and post-pandemic recovery in the town.
Somerset Council became the accountable body for the programme in April 2023 following Local Government Reorganisation, inheriting a portfolio of complex, externally funded projects during a period of significant organisational change.
An audit, conducted by the South West Audit Partnership (SWAP) at the request of Somerset Council, highlighted governance and financial assurance gaps with one partner – Red Brick Building Centre Ltd. – and, subsequent to this, Grant Thornton, the council’s auditor, has now made Somerset Council a statutory recommendation which can be found in the report here.
A statutory recommendation from an auditor is a formal, legally binding recommendation made by an external auditor to a local council to address significant issues identified during an audit.
As part of Somerset Council’s continued transparency on this issue, we committed to publishing our internal lessons learned document.
Our Audit Committee meeting on December 22 will also consider the range of actions already undertaken and to be taken moving forward in response to the statutory recommendation. The papers will be available on our website.
Somerset Council has previously confirmed that Town Deal funding to the Red Brick Building Centre Ltd. has been terminated. Additionally, in June 2025, Avon and Somerset Police commenced enquiries following receipt of a report from auditors on behalf of Somerset Council concerning the funding of the Life Factory project in Glastonbury. These enquiries are ongoing.
Somerset Council is seeking repayment of £2.29 million already paid to Red Brick Building Centre Ltd (RBBCL) following concerns which have been raised over insufficient financial controls, lack of costed plans, and non-compliance with procurement rules.
The overall findings have underlined the need for stronger accountable body arrangements across all major programmes at Somerset Council.
To address these issues and strengthen governance across all programmes, Somerset Council is implementing, or has already implemented, a series of measures which are outlined in the Audit Report and Lessons Learned report.
These measures will apply across all major programmes, including Town Deals, Future High Streets Funds, and Levelling Up Fund schemes, ensuring strong governance and resilience.
Somerset Council’s Chief Executive Duncan Sharkey said:
We take the findings of the independent audit very seriously alongside our role as accountable body in these matters. We recognise that there were failings in the past and we need to make improvements. We have already taken a wide range of actions, and we will continue to embed stronger controls and governance to ensure public funds are managed responsibly and future projects deliver maximum benefit for Somerset communities.
The statutory recommendations and the comments from the Audit Committee will be considered at a Full Council meeting on 17 December, and the next meeting of the Audit Committee will be on 22 December.
