Council moves to protect regeneration scheme amid cost pressures

Amelia Jones

A regeneration project in Pontypool that includes converting a toilet block into a restaurant has had to be bailed out by a UK Government grant after costs rose beyond the original budget. 

The scheme, which also involves revamping the multistorey car park and supporting the private redevelopment of a derelict church, was awarded Levelling Up funding in early 2023. 

Rising costs linked to a redesign of the car park created a major funding gap, which Torfaen council will now plug using a Pride in Place grant it is entitled to receive.

Senior councils agreed at a cabinet meeting on November 25 to direct the grant towards what the authority calls the Pontypool Cultural Hub and Cafe Quarter. They were told a new planning application for the toilet block conversion will be submitted soon. 

It will be the third time plans for the toilets and car park have gone before the planning department after two previous applications won approval.

Councillor Joanne Gauden, the Labour cabinet member for the economy, said the Pride of Place funding was confirmed by the government in September. 

She said the additional support will help manage risk created by rising costs and that any unused funding could help unlock other elements of the wider placemaking plan designed to strengthen the link between Pontypool park and the town centre. 

The project aims to create new jobs and protect existing employment in the town centre. The council hopes the new attractions will encourage more of the large number of visitors to Pontypool Park each year to spend time in the town.

Gauden said a planning application for the toilet block would be submitted shortly and that visible work on St James Church is expected soon following a legal agreement that will allow funding to be released. 

The church, which sits opposite the toilet block, is due to be transformed into an events venue through private investment already secured by the council. 

Greg Macdonald, the council’s interim head of economy, told the cabinet the funding allocation would help drive momentum behind the regeneration project.

He warned that part of the grant must be spent by the end of March 2026 or the council could risk losing the award and further funding from the Welsh Government. 

He said private investment is often the most challenging element of a redevelopment scheme but noted the council has already attracted such backing for the church project. The authority has already spent a significant sum on the wider programme. 

Although a construction contract for the toilet conversion and car park overhaul was agreed last April, concerns over funding had caused delays. 

The Pride in Place allocation has resolved the shortfall, although further revisions to the original design mean a new planning application is required. The costs now also reflect the impact of inflation.