Town regeneration 'in limbo' amid legal dispute

A council leader says a significant part of a major regeneration project in Clay Cross is in limbo amid a legal dispute with the contractor.

Inside Limited said last week that it "will not be completing" the Clay Cross Town Centre regeneration project "due to ongoing contractual and financial disputes with North East Derbyshire District Council".

The council said it did not accept the contract had been "lawfully terminated" and was seeking to address the issues.

Meanwhile, some local businesses are calling for compensation from the council over its handling of the delayed works.

The dispute focuses on the town centre regeneration aspect of the overall project.

It includes pedestrianising the existing main high street, Market Street, and a new town square that has been officially named Baileys Square.

The square would provide accommodation for businesses and space for community activities.

The £24m of funding to deliver a number of projects in Clay Cross came from government regeneration funds in 2023.

The project has faced significant delays despite a slated completion date of March 2026 given last year.

Works on pedestrianising Market Street resumed this week having stalled since January.

Plans to move the town's library to a more central location as part of the project are also uncertain due to Derbyshire County Council - which owns the library - reconsidering its plans for the building.

The Labour leader of the district council Nigel Barker told the BBC that "preparatory work" was now being carried out on Market Street by another contractor.

However, he could not give any firm commitments as to when the other works on Bailey's Square and elsewhere would progress.

"No decisions have been made," he said, acknowledging the rest of the project was in a "limbo phase".

He also said an assumption of costs increases because of the issues was "fair".

"We are fully committed to delivering on Bailey's Sqaure as soon as we can," he said.

"It is unfortunate where we're at, and it's not great to have this delay."

It is understood Inside Limited is claiming to have been underpaid for the works to the tune of hundreds of thousands of pounds and has blamed the need for several recent redundancies within the firm on financial issues caused by the council.

"This is an extremely regrettable outcome. However, the contractual and financial position had become untenable," the firm said in a statement last week.

"At this time whilst we commence litigation proceedings against the council it would be inappropriate to comment on the exact details."

A district council spokesperson told the BBC: "We can confirm that an independent adjudication has previously taken place in relation to specific payment issues on this project, and the adjudicator determined that no further payment was due in respect of those matters."

They added: "It is too early to speculate on final costs. The council is currently focused on securing the site, progressing Market Street works and ensuring continuity of delivery.

"Our focus is on minimising disruption and completing the works as efficiently as possible so businesses and residents can benefit from the long term improvements."

Stephen Reed is a district councillor for the area as well as a cabinet member for Reform UK-led Derbyshire County Council, and sits on the board for the Clay Cross Town Deal.

He said he was supportive of the council but acknowledged there were concerns.

"Are there going to be [cost] increases? Yes...because you're renegotiating a contract at 2026 prices as opposed to when the deal was first negotiated," he said.

Meanwhile businesses on the high street say the works - which have involved significant construction infrastructure blocking a large part of the high street for pedestrians - have negatively impacted trade.

A 6ft-fence lined the street with netting over the top for several weeks, obscuring the shop fronts.

"The people that were walking onto the street thought the street had closed down," said David Jones, whose DIY shop has been on Market Street for almost 40 years.

The shop is totalling 30% in takings compared to this time last year, which Jones attributed in large part to the works.

Jones also criticised the council's communication with local businesses as "faceless".

Other businesses nearby agree.

"We're really disappointed", said Gill Watters from the Peak Pharmacy group, which has a branch in Clay Cross. "The only communication we've had has been via social media."

Watters added that "very vulnerable patients" and disabled people had been unable to access the pharmacy easily and shop deliveries of medicines had become difficult.

Both say they would like compensation from the council for the disruption.

The district council said it had carried out a range of communications throughout the project including in-person visits from officers to local businesses.

It added there was "no provision" for compensation over loss of trade.

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