Purpose

To approve the reallocation of Towns Fund programme grant funding

Decision

Cabinet RESOLVED to:

1. Approve the reallocation of funding within the Towns Fund regeneration funding budget as follows:
   - £1,244,820: Inspire Education Group Centre for Green Technology
   - £350,000: Peterborough Central Library
   - £250,000: Peterscourt
   - £1,500,000: Peterborough Station Quarter City Link
   - £1,000,000: Cygnet Bridge and the Embankment
2. Delegate authority to the Executive Director of Place and Economy in consultation with the Executive Director of Corporate Services, the Director of Law and Governance, the Cabinet Member for Growth and Regeneration, and the Cabinet Member for Finance and Corporate Governance to take all necessary steps to deliver the final stages of the Towns Fund projects in accordance with recommendations 1 and 2 above and where necessary entering into any legal agreements, including entering into grant fund agreements.
3. Delegate authority to the Executive Director of Place and Economy, in consultation with the Executive Director of Corporate Services, the Director of Law and Governance, the Cabinet Member for Growth and Regeneration and the Cabinet Member for Finance and Corporate Governance, to allocate all or part of the retained contingency funding and make any associated non-material amendments to project allocations within the approved Towns Fund programme, provided that any material change is referred back to Cabinet .
4. To note that the approval of the lease to operate Peterscourt sits within the council’s existing scheme of delegation and does not require a Cabinet decision

Reasons for the decision

To set the case for the reallocation of Towns Fund monies from the sale of 62-68 Bridge Street and the Goods Shed on Fletton Quays, in order to ensure the funding delivers maximum value and remains aligned with the original objectives of the Towns Fund programme.
 

Alternative options considered

3.1   It is expected that any grant funding which has not been used would be returned and recycled back within the Peterborough regeneration fund.

3.2 The MHCLG guidance, published 2 September 2025, states: “In the small number of cases where projects are no longer viable, we expect that councils will use the funding available to invest in the area that originally stood to benefit, so local residents can feel the improvements to their everyday lives that they have been promised”.

3.3 MHCLG has agreed to honour the existing capital/revenue split for each place based on what was previously agreed for places with Town Deals or the Pathfinders pilot.

3.4 Where a place is in receipt of a revenue allocation, this can be used flexibly on their revenue programme of activity e.g. moved from one revenue project to another where the need is greater. There is no additional revenue funding available beyond what places are already in receipt of.