Somerset police have begun a formal investigation into a troubled regeneration project in Glastonbury.

The building, located on Morland Road in Glastonbury, has been the subject of significant building work as part of the £23.6m Glastonbury town deal, with the derelict 'Building C' being transformed into The Life Factory - a community events space with offices, and other facilities.

Somerset Council officially 'paused' funding for the project in January 2024 amid serious concerns being raised about its management, with the South West Audit Partnership (SWAP) delivering a scathing verdict on how the project had been managed in May 2025.

The council has now confirmed that Avon and Somerset Constabulary's fraud team has begun an official investigation into the project – and that any further work on the building may not be signed off until after Christmas.

Taunton resident Brenda Orr raised the issue when the council's audit committee met in Taunton on Monday morning (September 29).

She said: "I note that SWAP was due to report on this in June but that has now been pushed back to December. Where local contractors have carried out work and that has been verified as delivered, have they been paid? If not, when will they be paid?

"The council and local taxpayers could be left with a loss of up to £2.4m if the Ministry for Housing, Communities and Local Government (MHCLG) decide that the council failed in its duties as the 'accountable authority'.

"When will the council know whether MHCLG will claw back any of their grant funding and, if they do, how will that be accounted for?"

Reports first surfaced in May 2024 from local residents that "bricklayers, carpenters, roofers, plumbers, joiners and labourers" associated with the project have not been paid "since March".

The issue reached a boiling point at Somerset Council's full council meeting in March 2025, where health and safety consultant Jonathan Wilkins informed councillors that his wife of 35 years, Angela, had taken her own life in light of the stress caused by the project.

Council deputy leader Liz Leyshon (who represents the neighbouring Street division) stated: "The options appraisal will be completed in October, and will be included as an appendix to a report going to the executive committee.

"It will not access the value for money of past work, but will outline future options for the Life Factory site.

"We have no liability for the creditors of Red Brick Building Centre Ltd.; under the grant funding agreement, they are responsible for paying their creditors, and local contractors must seek payment from that entity.

• Read more: Paperwork missing, builders unpaid: FOI lays bare chaos of Glastonbury's Life Factory project

"I understand that a third party has referred this situation to the police for investigation. In such circumstances, it would not be appropriate to comment further."

SWAP's most recent report into the project said that the options appraisal would ensure the building was left in "a safe, secure and watertight state" before any decisions on its future were made.

The report said: "The council needs to be satisfied that the Red Brick Building's delivery plans are appropriate and that project risks fully understood.

"Following an options appraisal, the Red Brick Building will ensure that a detailed delivery plan or project plan and schedule of works is in place for the remaining revised works, before funding is released and building works continue.

"The options appraisal, together with reconciling the variance between grant funding paid and supporting evidence, will help inform the future direction on this project.

"The project should not proceed until the council has considered the options appraisal and decided on the best course of action."

• Read more: Explained: How Glastonbury's £3m Life Factory project unravelled — and what happens next

Following the meeting, the council confirmed it would not be issuing any further comment on this matter until the police investigation had concluded.

A spokesperson said: "In late-2023, we became concerned about management of the Life Factory project and later paused payments before referring the project for audit by SWAP due to serious concerns about financial management, governance and value for money.

"We can now confirm that in early-June 2025 the case was passed to the police, and we would not want to prejudice any investigations by commenting further at this time."

A spokesperson for Avon and Somerset Constabulary added: "We are carrying out preliminary enquiries following receipt of a report from an auditor service on behalf of Somerset Council, concerning the funding of the renovation project of the Life Factory in Glastonbury.

"Our fraud team is reviewing the documents to establish whether there is any potential evidence of criminality that would warrant a formal criminal investigation to be carried out."

MHCLG confirmed shortly before parliament's summer recess that it would be extending the deadline for all remaining town deal projects by 12 months – giving the council until March 2027 to spend or return remaining monies.

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