Council at risk of going bust over hall build
- Published
A parish council that has spent hundreds of thousands of pounds building a village hall could be on the brink of going bust.
Easton Parish Council, in Norfolk, is not able to cover costs to finish a new community centre in Marlingford Road to replace the existing hall.
While the project was due to be completed in autumn 2023, construction work had to be paused after the original contractor went into administration and costs have risen through inflation.
The Local Democracy Reporting Service said Easton Parish Council had declined to comment.
The new build has been designed to include offices, a bar and kitchen, changing facilities and a main hall which can be used for sports, concerts, cinema screenings and meetings.
However, since construction began last year, works were paused after the contractor behind the scheme went into administration.
The centre, which is three times the size of the existing hall, was expected to be completed last autumn, but the completion date was pushed back to May.
The scheme was forecast to cost £1.5m, however councillors believe the total is near £3m due to inflation.
'O2 of Easton'
Des Fulcher, member of the parish council, said the project was overambitious and far grander than it needed to be, calling it the 'O2 of Easton'.
He said the parish was unable to repay a loan of £500,000 to finish the work.
"Money has been spent on the pretence of getting it back from CIL (Community Infrastructure Levy) payments but the timeframes just haven't lined up.
"Easton is going to suffer for infrastructure because we can't afford anything else."
In order to file for effective bankruptcy, the council would need to issue a section 114 notice if it was unable to meet expenditure commitments from its income and this would mean no new spending commitments could be made.
South Norfolk Council, which had previously provided funding for the project, has been working alongside the parish council.
A spokesman said: "Easton Parish Council is a statutory body in its own right, and we have limited jurisdiction over its operations or decisions.
"However, we have been made aware of the issues Easton is facing, and we are currently supporting them in understanding the scale of their problems and exploring their potential options moving forward."
Get in touch
Do you have a story suggestion for Norfolk?
Follow Norfolk news on BBC Sounds, Facebook, external, Instagram, external and X, external.
Related topics
- Published14 October
- Published3 June 2015