Market Square facelift goes £1m over budget

The Market Square in Northampton features permanent and temporary market stalls

A council is to decide whether it will fund a £1m overspend on the renovation of a town's market square, more than a year after its reopening.

The budget for the redevelopment of Market Square in Northampton was £12.5m, with £8.4m coming from the government's Future High Streets Fund, and £4m though the Community Infrastructure Levy (CIL).

West Northamptonshire Council said it would consider a settlement with contractor Stepnell Ltd, which carried out 18 months of work that was completed in September 2024.

It said: "If a settlement is not reached, adjudication proceedings would continue, potentially costing more money for taxpayers."

The Reform UK-led authority said it would decide at a cabinet meeting if it would fund the overspend.

It added that it had been in negotiations and mediation since August but if a settlement was not reached it could cost taxpayers more money.

Water features are one of the new attractions in the square

New paving, bespoke fixed stalls, lighting, seating, water features and trees were installed in the new Market Square, which saw traders forced to move out from January 2023.

It was officially opened in October 2024.

The council said on 11 November it would discuss a report recommending a commercial settlement with the contractor.

It would mean final construction costs of £1m paid out of capital funding, including the negotiated and confidential settlement.

Thousands attended Northamptonshire Day in Northampton's Market Square on Saturday 25 October

Reform UK councillor James Petter, cabinet member for local economy, culture and leisure, said it was not the outcome "anyone wanted".

"Our approach to construction contracts, risk and procurement needs tightening, and we're already reviewing those processes to make sure this doesn't happen again."

He said the work was "already transforming the heart of Northampton".

"It's busy, it's vibrant, and it's drawing people back into the town," he said.

"Settling this now lets us draw a line under a complicated build and focus fully on the benefits the space is already delivering for our community."

Work started on transforming Market Square in February 2023

The council said it would consider lessons learned from the complex project, which included significant archaeological finds, collapsed Victorian sewers and diverting more underground utilities than previously expected.

Many events have been held on Market Square since it opened including Northamptonshire Day, the town's Great Fire 350th anniversary and international events like the Women's Rugby World Cup fan zones.