A LOCAL authority looks set to drop a key part of its flagship £17.7m scheme to transform a town centre after only receiving a fraction of the Government funding needed for the project.

A meeting of Hambleton District Council’s cabinet next Tuesday will hear abandoning proposals to buy land and buildings in Northallerton to create a £3.75m artisan craft yard could enable the authority to focus more funding to the other major element of the scheme, the redevelopment of the former prison site.

The authority’s vision had included creating “an inviting pedestrian route and a vibrant space” for high-tech and creative enterprises, alongside small cafes and local artisan food and drink businesses around a courtyard featuring an outdoor seating area.

However, leading councillors will be told while the council has had a £6m offer in principle from the Ministry of Housing, Communities and Local Government as part of the Government’s Future High Streets Fund scheme, the offer is some £2.7m short of the funding needed to complete the planned revamp.

An officer’s report concludes the ministry has “made it clear that the introduction of new schemes is not an option at this stage, so the council must either secure additional funding, scale back or eliminate existing schemes, or make other changes”.

Still central to the initiative is the second phase of the council’s Treadmills leisure and digital-led mixed use development, which includes a cinema, restaurants, cafes, and a post-18 education hub.

The council says the development will provide “a cultural asset at the heart of the town centre” and help stimulate the evening economy.

The report states the council plans to revise its grant application to the Government, as the Treadmills scheme is facing “increased costs associated with progressing the development due to market changes since the original business case was submitted”.

While the authority has not revealed details of why the market has changed, it has pointed towards the impact of Covid-19 and it has leading to the proposals for the cinema and housing to be revised.

Other elements being retained in the scheme include the repurposing of long-term empty spaces above shops on the High Street, to form affordable residential units, improve upper floors and their appearance, and provide starter accommodation for young professionals.

The authority will also continue to pursue creating “a high quality and flexible events space” on the High Street, costing about £1.2m, where the council hopes to stage entertainment to draw visitors to the town centre.