City centre revamp hit by rising costs and delays

The Fargate scheme in Sheffield has faced extensive delays and rising costs

Levelling Up projects are "simply not being delivered" or face "significant" cutbacks, a South Yorkshire council warned as its own scheme spiralled in cost.

Sheffield City Council successfully bid for £15.8m from the government's Future High Streets Fund in April 2021 to renovate Fargate, High Street and Castle Square.

The money was due to be spent on a cultural hub, a scheme encouraging businesses to move into empty shops, and new seating and greenery, but the project has been beset by delays.

Councillor Ben Miskell, chairman of the regeneration committee, said rising cost was a problem "all local authorities have had to address".

Shoppers on Fargate in Sheffield city centre have to navigate plastic fences

Three years on from the financial award, Fargate is still being dug up while pedestrians have to navigate around a maze of plastic fences to reach shops.

The council has blamed inflation and the cost of materials.

Mr Miskell said: “The original costs of work on Fargate, High Street and Castle Square in November 2021 were estimated to be £8.8m based on tender prices.

“Following detailed design, these costs rose to nearly £18m.

“In February 2023 the council approved the phasing of the public realm works to enable a start on site on Fargate, with High Street and Castle Square to be delivered at a later date subject to funding.

“The Fargate works are estimated to cost £14.4m. This increase was primary due to cost inflation."

The council said there had been delays with paving supplies, issues with ground conditions and technical approval of underground bins.

South Yorkshire Mayoral Combined Authority (SYMCA) stepped in and gave an additional £4.6m of funding to ensure the work was completed.

The council said Fargate should be “substantially completed” before Christmas but it was not expected to be fully completed until early in 2025.

The original artist's impression of how Fargate would look

The Event Central cultural hub has been delayed by two unsuccessful procurement processes plus the impact of the work on Fargate.

A council report said: “Conflict with the ongoing construction work has become more apparent and a decision has been made to reduce that clash by delaying the commencement of the Event Central works until the majority of the public realm work is complete.

“As a result the programme has slipped significantly, and the construction will now fall into the 2025/26 financial year.”

Meanwhile, work on High Street and Castle Square has been paused while the council concentrates the budget on Fargate. The council is working with SYMCA to secure funding for these areas.

Adam Murray, owner of Sheffield development consultancy Urbana, was critical of the delays.

He said: “The city centre is coming alive at last and the council and partners across the property sector continue to do a fantastic job.

“However, this really is becoming a drag on the great work that’s been done.

"We all understand that projects get delayed and things happen that were unexpected, but getting this completed should be an absolute priority.

“It’s been dug up and a mess for over 18 months and sends the opposite message to residents and visitors that the rest of our regeneration efforts demonstrate.”

Follow BBC Yorkshire on Facebook, X (formerly known as Twitter) and Instagram. Send your story ideas to [e-mail]