Councillor raises concerns over costly Debenhams revamp

Richard Youle, Local Democracy Reporter

An opposition councillor has asked the Plaid Cymru-Independent administration for an inquiry into its costly Debenhams redevelopment project at a key budget meeting.

Cllr Kevin Madge, of Labour in Carmarthenshire, said it was needed to “restore public confidence.” He also wanted to know when work would start on long-awaited new Ysgol Heol Goffa special school.

It came during a debate about the council’s five-year capital budget. This is money for things like new schools, care homes, refuse lorries, and town centre  regeneration schemes.

Local authorities have to approve a five-year capital budget and a majority of councillors went on to approve Carmarthenshire’s £149.7m programme with £68m of that pencilled in for 2026-27.

It doesn’t include underspends on existing projects which are now estimated, according to a budget report, at around £71m.

The five-year programme includes a phased £16.7m relocation of Llanelli indoor market to the former Woolworths building in nearby Vaughan Street and a £2m demolition of the car park above the market.

Cllr Alun Lenny, cabinet member for resources, said this move had been agreed “step by step” with market traders.

There’s £13.6m for a new council care home in Cwmgwili in 2026-27 with £7m to be carried over from the current financial year.

Meanwhile £5.2m is allocated to the ongoing extension of Ysgol Bryngwyn, Llanelli, £3.5m for refuse vehicles, and £3.7m for the Debenhams revamp in Carmarthen.

The council stepped in when Debenhams went into administration in 2021 and work is well under way on a new council, leisure, and health hub – to be called Atriwm – at the empty St Catherine’s Walk Shopping Centre store in Carmarthen.

But costs have risen considerably and it emerged last month that a structural defect had been identified that hadn’t been picked up during inspections and surveys. It’s forecast the conversion will cost £41m with £28.2m coming from the UK and Welsh Governments and £12.8m from the council.

Cllr Lenny said: “It will be a fantastic resource for the town and its rural hinterland.”

Cllr Madge called for an independent inquiry into the scheme. His party, he said, had “tremendous concerns over governance and project control” and wanted to know what ongoing maintenance costs would be.

He said: “An independent review of this project is now warranted to ensure transparency and restore public confidence.”

Cllr Lenny said the council had a choice in 2021 to step in or “wash our hands of it” and opted for the former. He thanked residents for putting up with the works-related traffic lights. He has previously asked for a full report for councillors and the public about the structural defect.

Cllr Lenny also referred to a report by a retail analyst firm called MRI Software which said Carmarthen town centre had experienced a 19% footfall surge in 2025 compared to the previous year – a rise second only to Ballycastle in Northern Ireland.

Cllr Madge also asked when a new Ysgol Goffa special school would finally be built in Llanelli. It follows years of preparations and delays. Cllr Lenny said a schedule of accommodation for the new 150-place school had been completed and that designs were being finalised.

Planning permission and Welsh Government backing would be needed. The council, he said, remained in constant communication with Ysgol Heol Goffa.

Cllr Madge also wondered when new schools in Ammanford, Llanybydder, and Llandeilo would be built.

Among the projects included in the programme for next year are £4.85m for roads including drainage work, £2.2m to complete the 15-mile Towy Valley cycle path, a £1.2m demolition of the former Llanelli leisure centre, £1.2m for mobile classrooms at Carway Community Primrary School, Kidwelly, following its closure due to a structural issue, a £1m Burry Port harbour investment, £1m for a children’s residential home, and £200,000 for flood mitigation works.

The capital budget will be funded by government grants, the sale of council assets, and borrowing and reserves.

Cllr Madge said Labour supported some but not all of the proposed budget and that it wouldn’t be voting for it in its current format.

Cllr Lenny said no alternative budget or amendments had been put forward by Labour and, reeling off several of the projects mentioned above, he said: “If you vote against the budget you vote against the lot.”