Fraud enquiry into regeneration project dropped

Police have confirmed no action will be taken after a year-long probe into a major government-backed project.

The Life Factory project in Glastonbury was meant to transform a derelict former factory block into a community events space as part of the £23.6m Town Deal scheme.

But Somerset Council froze funds to the project in 2024 after serious concerns were raised about its management, followed in 2025 by a critical audit report, the details of which were shared with Avon and Somerset Constabulary's fraud team.

After reviewing the project, the force said it found there was "insufficient evidence of criminality" to warrant further investigation of the council or any other party involved.

The Red Brick Building on Morland Road was the subject of significant building work meant to turn "Building C" into an arts venue, according to the Local Democracy Reporting Service.

It was one of 10 projects awarded government funding under the Town Deal.

The South West Audit Partnership (SWAP) delivered a scathing verdict on how the project had been managed in May 2025.

In December, chief executive Duncan Sharkey formally apologised on behalf of the council for "mistakes" that were made; the project was terminated by the council shortly after.

On Wednesday, Sharkey informed a full council meeting of the police force's decision.

In a separate statement, a spokesperson for Avon and Somerset Constabulary said: "In 2025, we received a report from an auditor service on behalf of Somerset Council concerning the funding of the renovation project of the Life Factory in Glastonbury.

"Enquiries have been undertaken and have found there is insufficient evidence of criminality to warrant any further investigation, and therefore no action will be taken."

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